Trucking company owner pleads guilty in cargo theft, overbilling scheme

The owner of an Ohio trucking company has pleaded guilty to wire fraud in a cargo theft scheme involving tampering with security seals to consolidate loads and overcharge shippers.

Gurtej Singh, who also went by the name of Gary Bhullar, pleaded guilty to one count of wire fraud in a federal court for the Southern District of Ohio. Last May, Singh initially was indicted on one count of conspiracy to steal from interstate shipments, two counts of stealing from an interstate shipment and one count of making a false statement.

Singh was the owner of Bhullar Transport Group, Roadhawk Transportation and Show Time Carrier. He was also the manager of Cargo Solutions Express, which is at the center of an indictment alleging a cargo theft scheme that overbilled shippers hundreds of thousands of dollars.

According to the U.S. Attorney’s Office for the Southern District of Ohio, trucking companies managed by Singh would contract with shippers to haul only the customer’s cargo. Shippers would pay a higher rate to ensure their cargo was not mixed with cargo from another customer. To guarantee the reservation of a truck, a serialized plastic seal was installed on the trailer door. Receivers can compare the seal to the paperwork to verify that the trailer has not been opened.

As part of the cargo theft scheme, Singh would direct Cargo Solutions Express employees to remove the entire trailer locking mechanism, which requires cutting and replacing bolts. In other cases, employees would alter the seal serial numbers and paperwork. After opening the trailer, cargo from separate companies would be consolidated to one truck despite shippers paying a premium to reserve a truck.

The cargo theft scheme did not stop at generating higher profits by consolidating cargo.

According to the indictment, Singh and others would take cargo for their personal use. Cargo also was sold at pawn shops and to others.

Among the stolen items were more than 150 Shark Ion Robot RV750 vacuum cleaners and dozens of Samsung 32-inch curved computer monitors. One text message on an employee’s phone shows two of those monitors in use at the Columbus warehouse. About 10 of the vacuums were sold to a local pawn shop for $850, and about nine computer monitors were sold to the pawn shop for $840.

At least 174 vacuums valued at nearly $41,000 were stolen in the cargo theft scheme. Those vacuums were destined for an Amazon fulfillment center in Ohio. Singh also stole 10 pallets of Bath and Body Works products worth nearly $230,000.

In addition to counts related to the cargo theft scheme, Singh was indicted for making false statements to the Federal Motor Carrier Safety Administration. When filling out the application for motor property authority for Bhullar Transport Group, he failed to declare his relationship with Cargo Solutions Express, Roadhawk Transportation and Show Time Carrier. The agency requires applicants to declare any relationship with any FMCSA-regulated entity within the past three years.

Sentencing for Singh had not been scheduled as of Tuesday, Feb. 20. LL