A Dallas Shipping Company Used an Elaborate Scam to Ship Everything Free with FedEx, Lawsuit Claims

Categories: Crime

640px-Fedex-truck-Chicago.jpg
Kelly martin
Not Ward's Personal Vehicle

It started out, according to court documents, on the up and up. Bradley Ward, owner of The Lone Star Shipping Company, agreed with FedEx to become an Authorized Shipping Center for the freight company. In exchange Lone Star received deep discounts on FedEx services and signage to put in front of the store.

That was in 2006. By April 2011, the company was delinquent on its FedEx accounts. FedEx dissolved its agreement with Ward and won an almost $19,000 judgement against his company in a September 2011 Dallas County Court judgement, the lawsuit says.

For most, that would have been the end of it. For Ward, it was just the beginning.

Lone Star never paid the judgement and Ward stopped making payments to FedEx. His business, however, didn't stop offering FedEx services, the shipping giant claims.

Ward simply opened a new account on the FedEx website. He didn't even bother to change the company's full address at 6611 Hillcrest Ave. In order to avoid cross-checking against his old, bad account, he just made up a new suite number. That was enough to fool FedEx fraud detection system, according to the suit.

When creating the new account, Ward also provided a different credit card number. The credit card, FedEx claims, was declined after Ward sent multiple packages using the account.

After the card was declined, FedEx closed the new account. So Ward opened another one. Over 50 times. Wash. Rinse. Repeat.

He slightly modified the suite number on each account and cycled through a number of different credit cards. Each one was declined when FedEx first attempted to post charges -- which often ran in the thousands of dollars, according to the documents -- to it.

By the time FedEx caught on, in January of this year, Ward, FedEx claims, had received more than $70,000 in free shipping.

In a new lawsuit filed Thursday, FedEx is suing Ward for the loss of that revenue, fraud, trademark infringement and trademark dilution.

Unfair Park was able to briefly talk with Ward, but he said he wasn't aware of the lawsuit and declined to comment.

My Voice Nation Help
11 comments
nobucks
nobucks

I got caught in the cross fire - used Ward to FedEx 2 BCS championship tickets to Pasadena - FedEx intercepted the package due to fraud - tix ended up in Memphis - I ended up a few bucks light

artlover13
artlover13

Has anyone thought this could be a case of identity fraud/theft against the business? Seems like it would pretty easy to set up. Most of these types of stores have multiple mailboxes (ste. numbers) for their customers to receive mail.

bvckvs
bvckvs topcommenter

Using multiple fake identities is not "genius" - it's just pathetic.

TheCredibleHulk
TheCredibleHulk topcommenter

LOL.  Wile E. Coyote's got nothing on Bradley Ward, criminal genius.

Angrywhiteguy
Angrywhiteguy

So changing the suite# is an "Elaborate" scam?

Yup, makes Bernie Madorff look like a freaking Einstein.


The Observer never fails to deliver........

holmantx
holmantx topcommenter

Civil fraud, I suppose.  Otherwise Fedex wouldn't have to file a lawsuit.  

The trouble starts for the young entrepreneur if the criminal side of the house opens up an investigation and takes it to a grand jury.  Theft.  Continuing criminal enterprise RICO (well, probably not).

bvckvs
bvckvs topcommenter

@artlover13 

Prosecutors don't normally have the will or the resources to pursue random speculation.

halldecker
halldecker

@holmantx 

Naah,  unless you're a friend (or a friend of a friend),  the DA won't look at it.

Friend who was head of a major major Federal agency in Dallas said he'd go in with iron-clad,  no-question cases involving millions. US attorney wouldn't look at them.

As I was once told, "Yeah,  we got a lot of that going on!"

Texas was formed by dead-beats who'd been run out of Tennessee,  Kentucky,  Virginia,  the Constitution they designed made it possible to never pay a judgement,  unless you REALLY want to.




WhiteWhale
WhiteWhale

@holmantx Does this "entrepreneur" have a possible future is Dallas politics?

everlastingphelps
everlastingphelps topcommenter

@halldecker There is a civil RICO claim in the law, but I think the main thing that it would hinge on is whether or not Ward operated a legitimate business there as well (assuming, of course, that the facts in the story are correct.)


RICO requires that the criminal enterprise has a legitimate business that serves as the front for an ongoing criminal enterprise.  IF the business did legitimate business (like selling office supplies) while it was also serially defrauding FedEx (assuming the facts above are correct) then it looks like a good civil RICO claim.

halldecker
halldecker

@everlastingphelps @halldecker 

There definitely is.

But there's not enough to get the Feds involved on a criminal action;  given that Bro. Ward is almost certainly judgment-proof,  probably not enough to get any attorney willing to invest the time and expense. 

Feds can't even find the time to indict JWP.


50 credit cards are the most interesting thing,  he obviously fibbed to get them.  Q is how credit card companies could be so stupid.


Scratch that last sentence.



Now Trending

Dallas Concert Tickets

From the Vault

 

Loading...