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Investigations

Date

Rhode Island Trucking Company Owner Pleads Guilty to Scheme to Defraud FMCSA

On August 22, 2019, Michael Chaves, owner of CAT Transportation Inc. (CAT), pled guilty in U.S. District Court, Providence, Rhode Island, to bank and wire fraud, falsification of Federal records during a Federal investigation, aggravated identity theft, and tax evasion. Chaves was indicted on July 24, 2019.
 
The investigation revealed that Chaves was involved in a scheme that created checks from unsuspecting third-party vendors, had the checks deposited into CAT-owned bank accounts, and used false documents during an application process to secure bank loans for commercial vehicles. Chaves also falsified FMCSA registration documents using the identification of another individual without his/her knowledge to show no affiliation with another company that was under a Federal out-of-service order or the generation of false documents in an attempt to show compliance with FMCSA rules and regulations.
 
DOT-OIG and IRS-Criminal Investigation Division are conducting this investigation with assistance from FMCSA.