National Distribution Services (NDSI), Wholesale Distribution (WDI), Carl Johansson, Enrique Garcia and Donald Spicer were indicted April 25 in U.S. District Court, Central District of California on charges they conspired to defeat federal transportation laws.
All five defendants were charged with participating in a scheme to conduct illegal repairs on cargo tanks used to transport gasoline — which in one case resulted in a fatal explosion — and obstructing DOT investigations into those activities.
According to the indictment, in 2014, two welders were repairing a cargo tanker at NDSI when it exploded. One welder was killed and another was seriously injured. NDSI did not have the proper licenses to weld cargo tanks, the U.S. Department of Transportation Office of Inspector General said. The Federal Motor Carrier Safety Administration issued an out-of-service order to NDSI and put about 37 cargo tankers out of service.
NDSI was controlled and operated by Johansson. Garcia was the shop manager, and Spicer was the safety manager, the Office of Inspector General said.
In early 2015, NDSI allegedly transformed into WDI, which began conducting business as a hazardous materials trucking company. Johansson managed WDI, and Garcia and Spicer had the same roles they’d had at NDSI. Spicer registered WDI with FMCSA, but he did not identify the previous affiliation with NDSI. Specifically, he indicated on the registration paperwork that WDI’s management was not associated with any previous entity, according to the indictment.
The Office of Inspector General is conducting the investigation with the Internal Revenue Service Criminal Investigation Division.
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