PROVIDENCE, R.I. — Michael Chaves, 41, proprietor of Rumford, Rhode Island-based CAT Inc., an auto transport firm, was sentenced on March 10 by U.S. District Court docket Choose William Smith to 30 months in federal jail for falsifying U.S. Division of Transportation (DOT)/Federal Motor Service Security Administration (FMCSA) data. Following 30 months in jail, Chaves is to be in federal supervised launch for 3 years.
Moreover, Chaves fraudulently obtained greater than $400,000 from varied monetary establishments by using schemes throughout which he obtained $332,000 in loans and funds from a number of banks and credit score unions by offering fraudulent incomes statements, tax returns, motorcar buy contracts, and Division of Motor Automobile paperwork; prompted the fraudulent wire switch between monetary establishments of $72,864.28; and executed a scheme by submitting 15 fraudulent checks he created to an vehicle vendor’s checking account from which he obtained $64,453.
He was discovered responsible of taking steps to keep away from paying private earnings taxes owed to the Inner Income Service (IRS) by mingling enterprise and private bills, diverting third-party earnings utilizing a test casher, and creating fraudulent third-party checks. He maintained roughly 15 totally different financial institution accounts utilizing not less than 5 totally different firm names, in line with info offered to the courtroom.
Chaves additionally did not implement a driver alcohol or managed substances testing program and allowed drivers to exceed their hours of service.
Chaves dedicated fraud, utilizing one other individual’s identification to proceed to illegally function his auto-hauling enterprise after being ordered to close down by the FMCSA.
On Aug. 22, 2020, Chaves pleaded responsible to 10 expenses, together with aggravated identification theft, 5 counts of financial institution fraud, two counts of wire fraud, and tax evasion.
A restitution order will probably be forthcoming from the courtroom. Along with restitution to be paid within the fraud schemes related to the operation of his auto transport firm, the order will embrace a cost by Chaves to Amazon.
Court docket paperwork alleged that Chaves defrauded Amazon by theft of stock by falsely represented returns. In keeping with the allegations, Chaves ordered merchandise from Amazon and, at occasions, changed the unique merchandise with lesser-value replacements — typically gadgets that have been totally different than those he initially ordered — earlier than returning the packages to Amazon for refunds. Chaves’ alleged Amazon refund scams have been found through the investigation of CAT Inc. by the IRS Service Legal Investigation and U.S. DOT Workplace of Inspector Basic.