FMCSA suspends 14 for tour bus fraud

Charged with multistate conspiracy, mail fraud

Posted August 8, 2016

On July 13, 2016, the Federal Motor Carrier Safety Administration (FMCSA) suspended 14 individuals for fraudulently operating commercial tour bus companies. In March 2016, the U.S. District Court, Harrisburg, PA, unsealed a 10-count federal indictment and issued arrest warrants that charged these 14 individuals with a multistate conspiracy, mail fraud, and wire fraud for their roles in fraudulently operating commercial tour bus companies.

The indictment alleged that the defendants incorporated their companies in Pennsylvania and falsely represented that they were headquartered in Pennsylvania. The alleged false documents indicated 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 indicating that the buses met federal and state safety standards.

The indictment contains a forfeiture count to secure assets totaling $7,731,019 in the event of a conviction. FMCSA is seeking a 5-year debarment.

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