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Fraud & theft

El Paso truck driver arrested, accused of holding $155,000 fiber-optic cable load in payment dispute

El Paso County, Texas, deputies arrested a 38-year-old truck driver who, the sheriff's office says, refused to return a shipping container, a chassis and about 43,000 pounds of fiber-optic cable worth $155,000 after his load from Santa Teresa, New Mexico, was canceled and he disputed his final payment.

Deputies answered a theft report on Nov. 6 in the 13100 block of Montana Avenue, KVIA reported, citing the El Paso County Sheriff's Office. Investigators said the driver had been hired to haul the shipment from Santa Teresa. After the shipment was canceled, he reportedly kept the property because he disputed his final payment. Detectives found the truck, chassis and container at a property on Montana Avenue, recovered the cargo with a search warrant and seized the truck. Sheriff Oscar Ugarte made the arrest public on Facebook, Overdrive reported.

The driver is charged with theft of property valued between $150,000 and $300,000, and bond is $10,000. Under Texas Penal Code 31.03, theft in that range is a second-degree felony. The charge is an accusation and has not been tested in court. The sheriff's office did not say who canceled the load, who owed the payment or how much money was in dispute.

Federal rules give carriers a separate route when a broker does not pay. Under 49 CFR 387.307, every freight broker must keep a $75,000 surety bond (Form BMC-84) or trust fund (Form BMC-85) on file with FMCSA, and that money pays motor carriers when a broker breaks its transportation contracts. If a broker does not answer a claim within 7 business days and the surety finds it valid, the surety can pay it, and FMCSA moves to suspend a broker whose security drops below $75,000.

Why it matters: Keeping a customer's cargo or equipment to force payment can be treated as theft: here it brought a felony charge and the seizure of the truck. A carrier that a broker fails to pay can file a claim against the broker's $75,000 BMC-84 bond or BMC-85 trust.

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