FMCSA proposes debarring suspended trucking company

February 24, 2022

Land Line Staff

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Earlier this month, CAT Transportation Inc. and its owner Michael Chaves were suspended by the Federal Motor Carrier Safety Administration.

FMCSA has additionally proposed debarring Chaves and his former East Providence, R.I.-based trucking company, according to a U.S. DOT Office of Inspector General news release.

In August 2019, Chaves, who owned the now-defunct company, pleaded guilty to bank and wire fraud, falsification of federal records during a federal investigation, aggravated identity theft and tax evasion.

Chaves was sentenced in 2021 by a Rhode Island federal district court to 30 months in prison and three years of supervised release. In addition, Chaves was ordered to pay more than $630,000 in restitution by the same court.

Bad business

The charges against Chaves came after he continued operating his fleet of trucks despite violations of allowing drivers to operate without a current or properly certified license; failing to maintain certifications that drivers were medically able to drive; failing to implement a driver alcohol or controlled substance testing program; and allowing drivers to exceed the maximum number of hours of driving allowed under the law, according to court record.

In addition, Chaves fraudulently obtained more than $400,000 through bank loans and checks.

Chaves was also ordered to pay restitution to Amazon for a separate fraud scheme.

According to the System for Award Management, Chaves has a proceeding pending exclusion from the FMCSA effective until Feb. 1, 2025.

This means agencies shall not solicit offers from, award contracts to renew, place new orders with, or otherwise extend the duration of current contracts, or consent to subcontracts in excess of $30,000 with these contractors unless the agency head determines in writing there is a compelling reason to do so, according to the System for Award Management website. LL