Two owners of a Utah trucking group were recently convicted for their roles in an elaborate, 10-year pay-to-play fraud scheme that siphoned more than $108 million from FedEx Ground.
On Feb. 2, a federal jury in the U.S. District Court for the District of Utah convicted Yevgeny Felix Tuchinsky, 63, and Konstantin Mikhaylovich Tomlin, 54, both of Salt Lake County, Utah, of wire fraud and honest services fraud conspiracy. The two owned and operated several trucking companies consolidated under Salt Lake Trucking Group (SLTG), according to a statement released by the U.S. attorney’s office.
“Instead of competing fairly against other CSPs [contract service providers] for FedEx business, SLTG bribed FedEx employees to obtain more miles and more money from FedEx,” according to the statement.
The investigation revealed that Tuchinsky and Tomlin on behalf of SLTG paid nearly $320,000 in bribes to FXG employees who manipulated FXG’s process for awarding new runs. During the approximately 10-year conspiracy from 2009-2019, SLTG received about $108 million in FXG revenue.
“Before they delivered packages, these men and their teammates delivered cash bribes,” said Stephen Dent, assistant United States attorney, in a statement. “Before their trucks pulled away from the hub to go on a run, they lied and they bribed to even get that run.”
Federal prosecutors alleged that Tuchinsky personally gained $7 million and Tomlin gained over $4 million from the scheme.
Tuchninsky and Tomlin are scheduled to be sentenced on May 20.
In April 2021, Hubert Ivan Ugarte, 52, of Draper, Utah, pleaded guilty to fraud and money laundering in the same FedEx Ground pay-to-play scheme in exchange for lucrative contracts, and to defrauding the PPP loan program.
FXG is a subsidiary of Memphis, Tennessee-based shipping and logistics giant FedEx Corp. (NYSE: FDX).
Do you have a news tip to share? Send me an email or message me @cage_writer on X, formerly Twitter. Your name will not be used without your permission.
Read more articles here:
Ohio trucking owner pleads guilty to wire fraud
Penske Logistics slashes over 200 truck driver and warehouse jobs
Texas trucking company files for bankruptcy days before wrongful death trial
Ex-Slync CEO Chris Kirchner guilty of wire fraud, money laundering
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now