Prepared for Glacier | Delivered February 14, 2020
Fighting Fraud in Transportation Act
To update facts about an article written in 2011 about how to fight transportation fraud.
H.R. 2357, The Fighting Fraud in Transportation Act of 2011-Bill at the time of the article
The article mentions the bill's introduction of a
$100,000 surety bond
instead of the current amount of $10,000.
on suit amounts.
of registered motor carriers, brokers and freight forwarders by the Federal Motor Carrier Safety Administration (FMCSA).
Requirement of at least
one corporate officer
with the minimum training standards or equivalent experience in all broker or freight forwarder firms.
Updated version of the H.R. 2357 Bill
The bill was passed and became law in
when it was signed by president Obama as part of a larger legislation.
The Fighting Fraud in Transportation Act of 2011 was part of a larger bill named “Moving Ahead for Progress in the 21st Century Act” or
as a shorter version.
It represented only
8 pages dealing
with transportation brokers and freight forwarders, as part of a
The section related to fighting fraud starts with section 32916 titled "Registration of Freight Forwarders or Brokers", starting in
of the law document.
The main updates compared included in the last version of the law as compared to the 2011 bill are the following:
Broker’s surety bond was increased from
$10,000 to $75,000,
and NOT $100,000.
Another update is that the new version of the legislation now also requires
to have a surety bond, when they did not require it previously.
This extra requirement has been introduced to prevent existing brokers to switch to freight forwarders status to avoid being required to provide a
In another attempt to curtail fraud, a
has been created to require the Federal Motor Carrier Safety Administration (FMCSA) to publish online the details of companies behind each registration.
Details such as
name and business
addresses will then be available for people to check each registration and determine whether the company is trustful.
When it comes to the requirements for new entrants, they will need to have an employee or officer who has at least three years of relevant experience or can prove
related to rules, regulations and industry practices.
In addition, a new requirement to obtain a license forces registrants to prove that they have s
to act as brokers or freight forwarders.
In terms of liability, the guilty party will be liable to the United States government up to
for each violation, and liable to cover all valid claims made by injured parties; without any cost ceiling (page 423).
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