East Prov Auto Transport Company Owner Charged with Falsifying U.S. DOT Records

East Prov Auto Transport Company Owner Charged with Falsifying U.S. DOT Records

The owner of an East Providence auto transport company has been charged with falsifying U.S. DOT records, fraud, ID theft, and tax evasion, according to U.S. Attorney Aaron Weisman.

Michael Chaves, 39, was charged with ten counts of falsification of records, aggravated identity theft, five-counts of bank fraud, two-counts of wire fraud, and tax evasion.

The Investigation

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It is alleged in court documents that Chaves attempted to influence and impede FMCSA investigations and administrative compliance reviews by falsifying U.S. DOT records.

FMCSA inspections include a review of driver’s hours of service, maintenance and inspection, driver qualification, commercial drivers (CDL) license requirements, financial responsibilities, accidents, hazardous materials, and other safety and transportation records.

It is also alleged in court documents that Chaves operated various schemes to fraudulently obtain loans and funds from several banks and credit unions. It is alleged that Chaves fraudulently obtained loans from at least six different financial institutions totaling $332,000, by providing fraudulent earning statements, tax returns, motor vehicle purchase contracts, and Department of Motor Vehicle documents.

It is also alleged that Chaves employed a fraudulent check scheme by submitting 15 fraudulent checks he allegedly created to an automobile seller’s bank account from which he withdrew $64,453 and that he allegedly caused the fraudulent wire transfer between financial institutions of $72,864.28.

According to the U.S. Attorney’s Office, it is also alleged in court documents that Chaves received taxable income that he did not report to the Internal Revenue Service and that he took several steps to evade income taxes by, among other things, commingling business and personal expenses; using a check casher to divert third-party income; creating fraudulent third-party checks and cashing them using a check casher, rather than a bank; and maintaining approximately 15 different bank accounts using at least 5 different company names.