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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Ohio

FOR IMMEDIATE RELEASE
Tuesday, December 20, 2022

Leader of nationwide moving company scam conspiracy sentenced to 72 months in prison

CINCINNATI – A Miami, Florida, man was sentenced to 72 months in prison for conspiring in a racketeering enterprise to defraud individuals through moving companies located throughout the United States. Identified victims of the fraud lost more than $2.4 million total.

 

Serghei Verlan, 39, was sentenced in U.S. District Court in Cincinnati today.

 

The criminal enterprise used a series of moving companies to exploit thousands of people across the country by demanding ransom for the personal possessions those people had entrusted the enterprise to transport.

 

Verlan was one of 12 defendants indicted in July 2018 and was one of two leaders of the conspiracy. According to court documents, the defendants operated and worked through at least 12 affiliated moving companies to enrich themselves by defrauding customers who hired them to move their household goods.

 

The enterprise executed their scheme through various moving companies in Florida, Ohio, Maryland, North Carolina, Illinois, Texas, California, Connecticut, Colorado and Missouri. More than 1,000 customers have been identified as victims.

 

One of the enterprise’s warehouses was in West Chester, Ohio, and some of the identified victims reside in the Southern District of Ohio.

 

As part of the conspiracy, the defendants would provide customers with low binding estimates to do their move, promising to beat their competitor’s prices. After the customers agreed to hire the moving companies, employees of the moving companies would load the customers’ goods onto the truck and then the price of the move would be bumped. Co-conspirators would use an inflated cubic footage for the price of moving the customers’ goods.

 

Verlan was one of the few defendants who knew the “actual” or “real” cubic footage for customers’ goods and instructed workers to charge customers based on the fraudulently inflated price. He told employees to cap the overcharge at 20 percent to keep customer complaints down.

 

Verlan also paid employees to write fake positive reviews of their various companies to manage their online image. He was also directly responsible for furthering the conspiracy by “reincarnating” affiliated companies into “new” companies controlled by the enterprise through false statements to federal regulators.

 

Verlan pleaded guilty in August 2022 to participating in the racketeering conspiracy.

 

The other leader of the conspiracy, Andrey Shuklin, 34, of Miami, Florida, was sentenced in U.S. District Court in May to 78 months in prison.

 

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Andrea M. Knopf, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation (USDOT); and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Judge Douglas R. Cole. Assistant United States Attorneys Megan Gaffney Painter and Matthew C. Singer are representing the United States in this case.

 

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Topic(s): 
Financial Fraud
Component(s): 
Updated December 20, 2022