Trucking companies overcharged government, lawsuit says

A trio of trucking companies allegedly overcharged the government for services and made false statements to hide misconduct, according to a lawsuit filed by U.S. Attorney James Kennedy.

Roadway Express Inc., YRC Freight Inc., and Yellow Transportation Inc. allegedly for more than seven years knowingly overcharged the U.S. Dept. of Defense for lighter shipments than were received, Kennedy said.

The suit was filed in U.S. District Court in Buffalo, Kennedy said. It resulted from a “whistleblower” suit filed by James Hannum.

The federal government now alleges that the defendants reweighed thousands of shipments and suppressed the results whenever they indicated that a shipment was actually lighter than its original estimated weight. Thus, instead of charging the Department of Defense for shipments based on the correct weight, the defendants knowingly billed the government (and their other customers) based on weights that they knew to be inflated.

The U. S. Attorney also said defendants also allegedly made false statements to induce the Department of Defense to use them as freight carriers and further knowingly made or used false statements to improperly avoid their obligations to correct inflated invoices and return overpayments.