Former San Jose Moving Company Employee Sentenced for Her Role in a "Low-ball" Estimate Household Goods Scheme
In 2003, OIG began investigating owners and employees of National Moving Network (NMN) a Miami based household goods broker, and AY Transport, a household goods moving company based in San Jose, California. As part of its daily business practice, NMN booked moves nationwide and then referred a majority of the moves to AY Transport. AY Transport then charged its customers fees above and beyond NMN published tariff rates.
On April 30, 2012, Limor Gefen, a data entry clerk and customer service representative for AY Transport, pled guilty in U.S. District Court, San Jose, California, to a charge involving her failure to observe published moving tariffs. Gefen and AY Transport owners and employees participated in a "low-ball estimate" scheme with owners and employees of NMN. NMN booked household goods moves for its customers by providing them with low estimates and once the moves were booked, AY transport would then raise the price to transport the goods to exorbitant rates. As a part of the plea, Ms. Gefen admitted that from approximately July 2002 and continuing through approximately April 2005, she told at least two AY customers that they would not receive their goods unless they paid fees above and beyond published tariff rates. Immediately following her plea, Ms. Gefen was sentenced to six months of probation, and ordered to pay a $100 special assessment fee and $1,248.00 restitution to two AY Transport victims.
OIG has been investigating this case jointly with the Federal Bureau of Investigation and Internal Revenue Service, with assistance from the Federal Motor Carrier Safety Administration.