74 Indicted For Alleged Moving Company Fraud, Extortion

Companies Allegedly Offered Low Estimates, Inflated Prices

NBC 6 News Team

POSTED: 5:05 pm EST March 4, 2003

UPDATED: 5:46 am EST March 5, 2003

MIAMI -- The owners and employees of 16 moving companies have been indicted for alleged fraud and extortion that authorities characterized as a cancer on the household moving industry.

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Alleged Moving Company Fraud

According to the U.S. attorney's office, federal grand juries have returned indictments against 74 owners, operators and employees of the South Florida business. At least 46 people have been arrested so far.

All of those indicted are accused of luring customers into doing business with their companies by offering low estimated prices for moving customers' belongings, then inflating the transportation and other prices and refusing to deliver the goods until customers paid the higher fees.

The arrests were part of a two year investigation and federal crackdown on fraud in the domestic moving industry. U.S. Attorney Marcos Jimenez said the suspects essentially held the cherished belongings of hundreds of victims "hostage."

The defendants are charged with multiple counts of conspiracy, wire fraud, extortion, mail fraud and making false bills of lading, Jimenez said. Some of the defendants are also charged with conspiracy to commit money laundering.

The conspiracy, wire fraud, mail fraud and false bill of lading charges carry maximum five-year prison sentences for each count, plus $250,000 fines and three years of work release if convicted. The extortion charges could land some of the defendants in jail for 20 years, plus $250,000 fines for each count in the indictments. The money laundering charges carry maximum 20-year sentences and fines of $500,000 for each count in the indictment.

The defendants are accused of offering low prices to customers, who were then rushed through paperwork, causing many to sign incomplete or even blank purchase orders and other documents. Once the customers' goods had been loaded, the defendants allegedly claimed that the goods took up more space on the moving trucks than had been estimated, and in some cases customers were overcharged for packing materials.

When the customers contacted the companies asking for delivery of their goods, they were allegedly told they had to pay the inflated prices before delivery would be arranged.

Authorities say the companies ignored customer complaints about the price inflation and some of the defendants even used false names when talking to customers on the telephone. In some cases, the companies allegedly refused to compensate customers for missing or damaged property.

The two-year investigation, dubbed "Operation Stow Biz," included undercover agents who posed as potential customers.

While 16 companies were named in the indictments, the U.S. attorney's office said the individuals charged in the indictments worked for more than 40 different moving companies.

Authorities said they have identified 82 victims of fraud, but that the number of victims could be in the hundreds.

The South Florida companies named in the indictment include:

AAA Van Lines Inc., North Miami Beach.

Advanced Moving Systems, Sunrise.

All Points USA Relocation Systems Inc., Pembroke Park.

Ameri Van Lines Inc., Miami.

America's Best Movers Co., Sunrise.

Apollo Van Lines Inc., Plantation.

Century Express Van Lines, Fort Lauderdale.

Elite Van Lines Moving & Storage Inc., Sunrise and Plantation.

Express Van Lines, Miami.

First Class Moving Inc., Sunrise.