Bus Operators Charged and Arrested In Pennsylvania for Fraud and Obstruction
On March 15, 2016, the U.S. District Court, Harrisburg, PA unsealed a 10-count Federal indictment and issued arrest warrants that charged 14 individuals with multi-State conspiracy, mail fraud, and wire fraud for their roles in fraudulently operating commercial tour bus companies. Those indicted include You Guo Yang, Pao Hua Yu, To Lee, and Xing Lu Chen, among others. The defendants operated numerous suspect bus companies including All-State Travel Bus, Asia Tours, Apex Bus, New Egg Bus, and Universe Bus.
The indictment alleged that the defendants formed, controlled, managed, and operated various bus companies and routinely falsified FMCSA Motor Carrier Identification Reports and applications for FMCSA operating authority to conceal both who operated the companies and that they operated unsafe buses.
The defendants incorporated their companies in Pennsylvania and falsely represented that they were headquartered in Pennsylvania and that they maintained and garaged the buses in Pennsylvania, when in fact, they operated out of New York City. The indictment also alleged that the false documents enabled the defendants to obtain operating authority along with licenses and stickers and other authority indicating that the buses met Federal and State safety standards.
You Guo Yang, Xing Lu Chen and others allegedly falsified FMCSA regulated documents and records related to bus safety, maintenance, and driver qualifications to impede FMCSA inspections and reviews. More specifically, the indictment alleged that they submitted false documents indicating that the suspect companies had driver safety and training programs in place when, in fact, they had not. Also, the defendants allegedly submitted false documents and records related to accident registers, driver qualifications, hours of service, vehicle safety inspections, repair, and maintenance. They also falsified FMCSA regulated documents related to required drug and alcohol programs and their previous company affiliations and associations.
The indictment contains a forfeiture count to secure assets totaling $7,731,019 in the event of a conviction.
DOT-OIG is working this investigation jointly with Homeland Security Investigations and the Pennsylvania Attorney General’s Office. FMCSA provided substantial assistance.
Note: Indictments, informations, and criminal complaints are only accusations by the Government. All defendants are presumed innocent unless and until proven guilty.