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Investigations

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Utah Trucking Company Owners Sentenced for Bribery Scheme

On March 15, 2023, the U.S. District Court for the District of Utah convicted Davor Kovacevic and Zlate Balulovski for wire fraud and money laundering and sentenced each to 4 years of probation, a $200 special assessment, and a total of $308,049 in restitution. Additionally, Kovacevic was ordered to forfeit $549,034, and Balulovski was ordered to forfeit $554,967. Kovacevic, Balulovski, and co-conspirator Ryan Mower were indicted in October 2019.
 
In approximately April 2012, Kovacevic and Balulovski, owners of several trucking companies in Utah, began bribing Mower, a line-haul manager for Federal Express Ground (FXG). Kovacevic and Balulovski asked for and received, favors, preferential treatment, and assistance in defrauding FXG. The co-conspirators also used Mower's position to manipulate FXG's process for awarding new truck routes to FXG contract service providers, falsify mileage reports so that FXG overpaid the defendants' companies, and receive payments for “ghost routes” that they never completed. As a result of the scheme, the defendants' companies received approximately $21,373,873 from FXG and paid Mower approximately $165,000 in bribes.
 
DOT-OIG conducted this investigation with the Federal Bureau of Investigation (FBI) and the Internal Revenue Service, Criminal Investigation Division.