A Utah man pleaded guilty to his role in two separate fraud schemes that involved the procurement of FedEx Ground (FXG) contract shipping routes worth $24 million of profit and obtaining a Paycheck Protection Program loan for other trucking companies.
According to the Utah U.S. Attorney’s Office, 52-year-old Hubert Ivan Ugarte, of Draper, Utah, was convicted of fraud and money laundering charges for his involvement in the pay-to-play trucking scheme where he was one of 10 defendants who paid $1 million in bribes. The payments to the Utah FXG Ground Hub manager were to make their trucking businesses as lucrative as possible.
In the plea agreement, Ugarte admitted to bribing the FXG manager, Ryan Lee Mower, with approximately $490,000 which netted Ugarte’s trucking companies over $24 million between 2012 and 2019.
In exchange, the FXG manager gave Ugarte’s companies several delivery routes from FXG that Ugarte would not have qualified for under FXG’s established policies.
They reportedly worked to obscure the ownership of Ugarte’s many trucking companies by filing false compliance reports with FXG to award Ugarte with more trucking routes than one business owner was entitled, the plea agreement states.
Because of this, Ugarte was allowed to operate at least 45 trucking routes originating from the Salt Lake City FXG hub, exceeding the limit of 15.
The original full article can be found at kutv.com
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