Owner Of E. Providence Auto Transport Company Convicted Of Fraud

EAST PROVIDENCE, RI — The owner of an East Providence automobile transport company has been sentenced to 30 months in prison followed by three years of federal supervised release for falsifying motor carrier safety records, fraud, ID theft, and tax evasion, said Acting United States Attorney Richard B. Myrus in a news release Friday.

According to court records, Michael Chaves, 41, owner of CAT Inc., continued to operate his business after being cited for allowing drivers to operate without proper licensure and failing to maintain the proper certifications and guidelines among his employees and used another person's ID to continue operations after the Federal Motor Carrier Safety Administration (FMCSA) ordered that the business shut down.

Prosecutors say Chaves also fraudulently obtained over $400,000 from various financial institutions while evading personal income taxes by commingling business and personal expenses, using a check casher to divert third-party income, creating fraudulent third-party checks, and maintaining approximately 15 different bank accounts using at least five different company names.

Chaves pleaded guilty in August 2020 to ten counts, including one count each of falsification of records, aggravated identity theft, and tax evasion, five counts of bank fraud, and two counts of wire fraud.

The court will be issuing a restitution order for Chaves at a later date.