• ITVI.USA
    15,487.730
    -50.360
    -0.3%
  • OTRI.USA
    25.300
    0.130
    0.5%
  • OTVI.USA
    15,446.060
    -51.850
    -0.3%
  • TLT.USA
    2.720
    0.000
    0%
  • TSTOPVRPM.ATLPHL
    2.550
    -0.030
    -1.2%
  • TSTOPVRPM.CHIATL
    3.030
    -0.080
    -2.6%
  • TSTOPVRPM.DALLAX
    1.450
    0.150
    11.5%
  • TSTOPVRPM.LAXDAL
    2.910
    -0.030
    -1%
  • TSTOPVRPM.PHLCHI
    1.700
    -0.040
    -2.3%
  • TSTOPVRPM.LAXSEA
    3.020
    -0.010
    -0.3%
  • WAIT.USA
    120.000
    0.000
    0%
  • ITVI.USA
    15,487.730
    -50.360
    -0.3%
  • OTRI.USA
    25.300
    0.130
    0.5%
  • OTVI.USA
    15,446.060
    -51.850
    -0.3%
  • TLT.USA
    2.720
    0.000
    0%
  • TSTOPVRPM.ATLPHL
    2.550
    -0.030
    -1.2%
  • TSTOPVRPM.CHIATL
    3.030
    -0.080
    -2.6%
  • TSTOPVRPM.DALLAX
    1.450
    0.150
    11.5%
  • TSTOPVRPM.LAXDAL
    2.910
    -0.030
    -1%
  • TSTOPVRPM.PHLCHI
    1.700
    -0.040
    -2.3%
  • TSTOPVRPM.LAXSEA
    3.020
    -0.010
    -0.3%
  • WAIT.USA
    120.000
    0.000
    0%
Driver issuesLegal issuesNewsTrucking

Truckers owed thousands after Texas carrier files bankruptcy

Several small carriers are listed as unsecured creditors

Several trucking companies are collectively owed hundreds of thousands of dollars after a Texas-based motor carrier filed for Chapter 11 bankruptcy protection late last week.

FALC Enterprises of El Paso, Texas, filed its petition in the U.S. Bankruptcy Court for the Western District of Texas last Friday.

In its filing, FALC lists both its assets and liabilities as between $1 and $10 million and states it has up to 99 creditors. The Federal Motor Carrier Safety Administration revoked FALC’s operating authority in February. Its insurance policy was canceled in late January.

Several small trucking companies are listed among the carrier’s unsecured creditors, which are last for payment in Chapter 11 cases. 

Lourdes “LuLu” Castro, listed as the company president and joint owner of FALC, states that funds will be available for distribution to unsecured creditors.

As of press time, Castro did not return FreightWaves’ request seeking comment about the bankruptcy filing.

Legal woes plague FALC Enterprises

In the filing, FALC Enterprises lists that it has filed a cause of action against the motor carrier’s co-founder, Cesar Arturo Lopez of El Paso.

According to the bankruptcy petition, the allegations against Lopez include breach of fiduciary duty, Texas Theft Liability Act violations, embezzlement, usurpation of corporate opportunities, and fraud. 

Lopez did not return FreightWaves’ request seeking comment on Thursday.

Another El Paso trucking company, Major Motion Logistics, which Lopez founded in 2018, is also named. According to court documents, the allegations include “fraud, usurpation of corporate opportunities and constructive trust.”

Major Motion Logistics hauls sand and gravel, topsoil, debris and fill dirt, according to its website. The small carrier has 14 power units and eight drivers, according to the FMCSA.

Lopez is linked to several other El Paso-based trucking companies, including MPG Transport Inc. and Tulone Trucking Services Inc. 

According to the Texas Secretary of State’s office, Lopez registered a new business, Azteca Investment Company LLC, on Aug. 11 in El Paso.

FALC lists several executory contracts in its bankruptcy filing, including construction and road projects throughout Texas. 

Its bankruptcy petition lists three pending lawsuits, including two injury cases filed in El Paso and a truck accident suit in Arizona. 

Read more articles by FreightWaves’ Clarissa Hawes

Carriers owed hundreds of thousands after oil and gas company bankruptcy filing
Carriers owed thousands after lumber processor files for bankruptcy
Texas frac sand supplier Hi-Crush files for bankruptcy

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Clarissa Hawes, Senior Editor, Investigations and Enterprise

Clarissa has covered all aspects of the trucking industry for 14 years. She is an award-winning journalist known for her investigative and business reporting. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. Clarissa lives in the Kansas City area with her family. If you have a news tip or story idea, send her an email to chawes@freightwaves.com.

4 Comments

  1. ALWAYS ALWAYS PAY THE DRIVERS “FIRST AND FOREMOST”! No one should EVER BE PAID UNTIL THE DRIVERS ARE PAID FIRST! “THATS A FACT JACK”!

  2. WE ARE A SMALL CARRIER AND THIS IS THE REASON WE USE A FACTORING COMPANY. THEY FURNISH US WITH AN APP WHERE WE CAN INTANTLY FIND OUT IF A BROKER IS GOOD OR NOT .

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