A former employee scammed loyal customers about shipping costs
Recently, a freight forwarding company was scammed out of millions of dollars by an ex-employee and offending its own loyal customer. This is Blue Water Shipping, an old freight forwarding company with a history of more than 50 years. Blue Water Shipping U.S., Inc., a branch of the company in New Jersey, USA, reached a settlement agreement with its loyal customer, the U.S. government, and paid the U.S. government a settlement fee of $1.89 million.
This huge amount of compensation is because a former employee of Blue Water Shipping defrauded a large amount of freight fee from the US government. According to the U.S. Department of Justice announcement, Blue Water Shipping signed a long-term cooperation agreement with the U.S. government. The cooperation agreement is to provide services for the transportation of military equipment between the United States and Egypt. These costs are paid by the US government. However, between 2017 and 2019, an employee who had been laid off from Blue Water Shipping opened a fake company of his own, called Summit Transportation. He used long-term contracts between his former company and the loyal customer to bill for freight services that were never actually performed. Through this method, he defrauded a lot of freight from the US government.
During these three years, the ex-employee defrauded the U.S. government of approximately $530,000. Finally, in March 2022, the mastermind was sentenced to one and a half years in prison and will serve his sentence in the United States. As the mastermind’s former boss and victim of the incident, Blue Water Shipping admitted that its former employees forged documents and charged the U.S. government for shipping services that were never performed. In January, Blue Water Shipping agreed to pay US authorities a settlement of $1.89 million.
It is reported that Blue Water Shipping specializes in air and sea freight transportation, as well as government and defense logistics needs, including cargos, customs processing, security and warehousing. The employee who was fired by Blue Water Shipping submitted false payment claims to the U.S. government for the services provided under the contract between Blue Water Shipping and the U.S., and the U.S. government therefore filed a claim against Blue Water Shipping. Moreover, the U.S. government also accused Blue Water Shipping of improperly charging impermissible fees in inland transportation, import ocean freight, air freight, and export ocean freight and air freight contracts.
About Blue Water Shipping
Founded in 1972 and with more than 70 offices around the world, Blue Water Shipping is an international transport and logistics company that provides customers with specific solutions and a unique high-quality service. Blue Water Shipping is a professional organization capable of providing complete and specific solutions for any shipping and transportation needs anywhere in the world, always striving to provide customers with the best service and highest quality in the industry.
Blue Water Shipping is a global provider of all logistics services in modern supply chain management. At the heart of Blue Water is an organization of professionals skilled to offer complete and tailor-made solutions to any shipping and transport requirement anywhere in the world. This After the incident, Blue Water Shipping and various logistic companies all over the world will learn a lesson and will not let similar things happen again.
