Trucking Company Owner Indicted in Scheme to Hide ‘Reincarnated Carrier’ From FMCSA

Rochester, NY – A 39-year old former New York trucking company owner was recently indicted by a grand jury in the Western District of New York on a host of fraud charges.

Anatoliy Kirik, owner of Orange Transportation Services, Inc. (OTS) and Dallas Logistics, Inc. (DLI), is accused of conspiring to defraud the Federal Motor Carrier Safety Administration (FMCSA).




 

According to the indictment, Kirik spearheaded a scheme to hide the affiliation between OTS, headquartered in Rochester, and DLI — supposedly based in Dallas, TX — after OTS received a “Conditional” safety rating from the FMCSA.

The indictment alleges Kirik sought to avoid skyrocketing insurance premiums that would likely result from OTS’ negative safety rating by establishing DLI in October of 2012.

This practice, often referred to as “reincarnating carriers,” is common and well-known within the trucking industry.

As part of the alleged scheme, Kirik and another co-conspirator — identified only as “J.Z.” — are accused of submitting false and fraudulent paperwork claiming that DLI was a separate and independent trucking business and not affiliated with OTS.




 

However, during a compliance review in April 2016, FMCSA officials discovered that DLI was not actually headquartered in Dallas, TX, and that Kirik controlled both companies, which were based in New York.

In an interview with special agents with the U.S. Department of Transportation (USDOT) in December 2017, J.Z., who formerly worked for OTS, claimed he was approached by Kirik about creating DLI, and that he would be listed as the owner and president.


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The grand jury indicted Kirik on charges of conspiracy, false statements, falsification of records, false documents, concealment of material facts, and aggravated identity theft.

Kirik has pleaded not guilty and a trial is expected later this year unless a plea deal is reached.

If convicted, he faces a maximum penalty of five years in prison and a $250,000 fine.

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