Six Carriers Sue C.H. Robinson and TQL Under RICO Over Forced Labor

FreightWaves··US·Read original
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Summary · why it matters

Six trucking carriers have filed a federal lawsuit in the eastern district of Texas accusing C.H. Robinson and TQL of violating the Racketeer Influenced and Corrupt Organizations Act through a pattern of racketeering activity predicated on forced labor and wire fraud. The plaintiffs are Stevens Trucking, Western Flyer Express, D&M Carriers d/b/a Freymiller Trucking, IWX Motor Freight, Christenson Transportation Inc and E.O.S. Inc. The suit alleges the two brokers operate, control and influence enterprises alongside so-called Illegal Carriers to funnel customer freight through non-compliant carriers for financial gain, and that they rely on their status as brokers to avoid registering as motor carriers with the Department of Transportation. The lawsuit cites Super Ego Trucking, which C.H. Robinson named a carrier of the year roughly a year ago, as an example of one of the Illegal Carrier networks at issue, and quotes anonymous former Super Ego drivers describing chameleon carriers that switch DOT numbers and use addresses in multiple states to disguise control from a single Chicago-area network. The filing also claims EOS, Western Flyer, IWX and Christenson have been priced out of freight moving to and from Graphic Packaging International's mill in Texarkana, Texas. C.H. Robinson had not provided a statement by publication time, and TQL did not respond to an email; Trey Duck, a partner at the Austin law firm Nix Patterson involved in the suit, said the defendants profited from forced labor and peonage and pushed American trucking companies out of business.

Impact on assets 3

Industrials▼ · 1 stocks
CH Robinson Worldwide Inc
CHRW
▼ NegativeRegulationrelevance

C.H. Robinson is a defendant in a federal RICO lawsuit alleging racketeering via forced labor and wire fraud.

Energy Transition & Power Demand▲ · 1 stocks
Materials▲ · 1 stocks

Off-coverage companies 9

Christenson Transportation IncPrivate± Mixed
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E.O.S. IncPrivate± Mixed
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EOS GmbHPrivate± Mixed
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Freymiller TruckingPrivate± Mixed
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IWX Motor FreightPrivate± Mixed
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Stevens TruckingPrivate± Mixed
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Super Ego TruckingPrivate± Mixed
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Total Quality LogisticsPrivate± Mixed
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Western Flyer ExpressPrivate± Mixed
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