SAULT STE. MARIE, Ont. - The former head of a Sault Ste. Marie, Ont. carrier will serve an 18-month conditional sentence for fraud after collecting advances on loads that never existed.But while it's ...
SAULT STE. MARIE, Ont. – The former head of a Sault Ste. Marie, Ont. carrier will serve an 18-month conditional sentence for fraud after collecting advances on loads that never existed.
But while it’s doubtful he’ll have to serve any jail time, he will have to re-pay the money.
Over an eight-month period that ended Nov. 30, 1997, Calvin Shelleby defrauded American Transportation Inc. (ATI) of US $76,586 to help his own struggling company – Shelleby Transport-ation – which was having troubles meeting its payroll. Shelleby was a division agent for ATI, and was paid a commission for soliciting freight.
He received advances of 35 per cent to cover fuel, tolls, meals and other costs that drivers supposedly incurred.
On May 1, he pleaded guilty to charges that he falsified load control sheets to obtain payments for the fake loads. Shelleby was convicted of one count of fraud and ATI withdrew two other charges of theft and fraud.
“He has to remain inside the province on good behavior with the prescribed conditions of the conditional sentence. If he breaches them, he can be brought back before the court,” Crown prosecutor Kris Bignell told Truck News, referring to the sentence.
Justice Larry Whalen, in sentencing Shelleby, ordered him to repay the money, but said that the fraud Shelleby had committed amounted to “dishonesty born of desperation”, and that he made a bad choice that essentially was an attempt to avoid failure. ATI, looking to collect on its insurance policies, laid criminal charges of fraud.
Whalen suggested that it would be in the community’s best interest to keep Shelleby out of jail, where it would cost $50,000 to $75,000 to house him.
Shelleby’s defence lawyer, Don Orazietti, had argued that Shelleby’s alternative, once his company started to experience financial difficulties, was to fold and go under. He called for the conditional sentence because he argued that Shelleby did not constitute a risk to the community, and had no previous criminal record.
Bignell was seeking jail time as a deterrent, but would not give an opinion on the results of the sentencing.
“I’m just a minion. But what I will say is this type of offence deserves a jail term,” said Bignell.
Whalen imposed a compensation order of US $10,000 for ATI and US $65,586 for the insurance company.
“When he had a load on the truck he could fax the load control sheet and get an advance. He sent a whole pile of load control sheets down to the tune of $107,000 in advances, and there were no loads,” said Bignell. Until the records were reviewed, ATI did not know anything wrong was happening. Anytime ATI asked questions, Shelleby would tell them loads were waiting in the yard for authorized delivery.
Shelleby continues to work as a broker, but has gone into personal bankruptcy. n
MVSA honors Boyle with safety award
REXDALE, Ont. – The Motor Vehicle Safety Association has honored Marlene Boyle, a facilitator of human resources development with Pacific Western Transportation, with its annual safety award.
Boyle, who has a record of 24 years of safe driving in the motor coach industry, has also been involved in various committees such as the Council of Driver Trainers and the Task Force on School Bus Safety Operations.
“I’m honored to be chosen for this award,” said Boyle, noting that the MVSA, with strong representation from the trucking industry, now also had a strong voice from the motor coach industry.
Boyle said that her priority for the immediate future is to promote further education in the transportation industry.
“Education is the top priority and it should never stop. Human resources and support staff all have to be up to speed, and when the passion leaves, you quit,” she said.
The MVSA also reactivated its bursary fund in 1998 after it had been inactive for several years. This year, the group decided to award the bursary to a student participating in the Peel Regional Science Fair, for a project that was related to transportation.
Stephanie Gorill, a Grade 7 student from Peel Region, was awarded the bursary for 2000. She put together a science fair project on friction. Gorill said she’d like to pursue the subject further and be an accident reconstructionist like her father. n