Aivaras ZIGMANTAS, 39, a Lithuanian citizen, was indicted by authorities on Friday for stealing more than $9.5 Million from diverted freight shipments. This included liquor and copper metal.
In a story that has become a familiar one in trucking circles Zigmantas is accused of committing thefts by using fake names, false carrier entities, and in many cases fake broker entities , registered to FMCSA’s admittedly out-of-date system .
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Zigmantas, according to a press release from the U.S. Attorney’s Office for the Northern District of Illinois, “used aliases in order to falsely pose as an agent of real and fictitious brokers and carriers involved in transporting shipments over state lines.” “After fraudulently enticing individuals and companies to release shipments to him, Zigmantas & others diverted shipments away from their intended destination and stole the goods.”
Since then, the number of cargo thefts, other freight crimes, and dollar losses have increased dramatically.
Indictment: “As part the fraud scheme Zigmantas created email addresses and websites under the names of fake individuals or entities, and opened bank accounts and UPS Store mail boxes using aliases.”
Zigmantas was accused of attempting to steal $13.5 millions in goods and actually stealing $9.5 million.
Zigmantas of Elk Grove Village in Illinois is charged with six counts for wire fraud, five counts for bank fraud, and also two counts each of theft from interstate shipments.
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Zigmantas has also been known by the following aliases at various times: Rolandas Butikis (also called Rolandas Butkus), Vismantas Dannyla (also known as Vismantas Danyla), Tom Kempinski (also known as Tom Kempinski), Arturas Liaskevicius Darius Meskauskas Arminas rimkus Egidijus stankus Kathy Stone Darius Venskus
According to the indictment he created a raft “fictitious carriers” that included Best Global Express, Mato Trans, Martin Global, JRO Global, VD Transco, SMD Transco, DMFL Express. FMCSA has taken these carriers out of service, but an examination of the old records shows that they used a mixture of UPS store addresses (which would not meet the regulatory requirements for a valid primary place of business) and real addresses belonging other motor carriers.
According to the indictment, Zigmantas registered “fictitious brokers” as well as “fake carriers.” The indictment named Best Global Express as well as Total Freight Brokers, Mat Brokers and A B Brokers. The brokerages used both real and P.O. Box addresses. Box addresses are a hallmark for shady or just lazy actors.
The alleged scheme involved fake bank accounts and ID documents.
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Zigmantas often directed the driver to a different warehouse where the cargo thefts allegedly occurred, by using the fake carriers and broker to post and reply to posts on unnamed loading boards.
The indictment stated that it was not uncommon for drivers to be diverted before or after picking up a delivery.
Zigmantas is innocent until proven guilty. However, he could face a severe jail sentence if convicted. Each count of bank fraud can be punished by up 30 years in federal prison. Each count of wire fraud can be punished by up 20 years. And each theft count may be punishable by 10 years.
The case shows how criminals can easily infiltrate the market for high-value shipments and redirect them at will with just a few payments made to the FMCSA registration system.
A bill introduced in the House would impose $10,000 fines for each instance where “fictitious carriers”, or brokers, have unannounced connections with other MC numbers. This bill would also remove any obstacles that FMCSA may face in assessing civil penalties.
It’s a good way to remind carriers to review best practices in order to avoid cargo theft and double-brokering .
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