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(Photo: Galleria Tile in San Francisco)

$175K in flooring materials stolen with fake orders

In a sophisticated cargo theft scheme, Claudia Visona, sales manager of Galleria Tile—a three-generation family business in San Francisco—lost $175,000 worth of flooring materials shipped to Baltimore. The scam, which unfolded in August 2025, involved fraudsters impersonating employees of AECOM, a prominent construction firm. Visona described the order as potentially the largest of her career, but it has now pushed her company toward bankruptcy.

The deception began when a man identifying as Johnny Kwok, an alleged AECOM employee, placed a rush order for 25,000 square feet of tile. He resisted a 50% deposit, citing AECOM’s reputation and promising future business, insisting on net-30 payment terms—allowing 30 days post-invoice. Kwok provided seemingly legitimate paperwork, including a credit application from a fake domain (aecom-usa) and a fraudulent website mimicking the real company. Trusting this, Visona shipped the materials to a northeast Baltimore storage facility.

When payment delays arose, Kwok requested a second order: 41,000 square feet of luxury vinyl plank flooring. Visona, anxious yet hopeful, hired a private investigator who inspected the Baltimore site, spoke with drivers claiming AECOM affiliation, and attempted to verify at AECOM’s local offices—without success. Despite her nerves, she proceeded, envisioning showroom upgrades and business growth. "I was nervous and I was excited… if this is real, I can finally get my lights redone… or I’m going to have to close down," Visona recounted.

Communication soon ceased, and AECOM’s security confirmed no employee named Kwok existed. Attempts to contact the provided numbers led to hang-ups. Visona filed reports with San Francisco police and others, but recovery seems unlikely. Keith Lewis of Verisk CargoNet, a cargo theft tracking firm, noted low recovery rates: "You may have 100 loads stolen a week, but you may recover 3 or 4."

The incident highlights a surging national problem. Verisk CargoNet reported 884 supply chain thefts in Q2 2025 across the U.S. and Canada—a 13% year-over-year increase—with losses exceeding $128 million. In Baltimore, average losses rose from $119,918 to $312,356, often targeting high-value metals. Theft by deception, like this case, now comprises about 33% of incidents, involving fake identities and documents. Traditional theft (57%) includes physical trailer break-ins, while other disruptions make up 10%.

Lewis advised verifying orders via direct, confirmed company contacts—not buyer-provided info—and requesting Dun & Bradstreet reports for large deals. For Visona, the loss devastates her family’s legacy: "My mom and my grandma’s legacy is destroyed too… it’s really frustrating."

Federally, the Combating Organized Retail Crime Act (CORCA) proposes harsher penalties and a national center for law enforcement coordination. Victims can report to CargoNet, local police, insurers, or the National Insurance Crime Bureau hotline.

This scam underscores the vulnerabilities in supply chains, urging businesses to prioritize verification amid rising organized fraud.

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Freight Fraud Video of the Week 🤩

FreightWaves Founder and CEO Craig Fuller talks with Michael Caney, Chief Commercial Officer at Highway, at F3: Future of Freight Festival 2025.

Is an enforcement-driven capacity crunch in the works?

(Photo: Jim Allen / FreightWaves)

The U.S. Department of Transportation (DOT) announced an emergency interim final rule on September 29, 2025, to address widespread abuse in issuing non-domiciled Commercial Driver’s Licenses (CDLs) to non-U.S. residents, often without proper work permits. This measure, issued through the Federal Motor Carrier Safety Administration (FMCSA), aims to curb fraud and regulatory lapses that have flooded the trucking market with excess capacity, exacerbating the longest freight recession in history. While the rule could restore market balance, it may trigger a significant capacity crunch, though the timeline remains uncertain.

Non-domiciled CDLs were introduced in 2017 to provide flexibility for drivers residing in one state but licensed in another. However, the system expanded to include non-U.S. residents, leading to improper issuances. A DOT audit revealed at least 200,000 such licenses nationwide, with over 25% in California granted without adequate verification. In March 2019, FMCSA issued guidance allowing foreign drivers to qualify with valid employment permits, unexpired passports, or U.S. Customs and Border Protection (CBP) Arrival/Departure Records. Yet, many states failed to enforce these requirements or align license expirations with work authorizations, enabling fraud and raising safety concerns.

The influx of these drivers has dramatically impacted the industry. Since March 2019, more than 310,000 trucks have been added to U.S. roads, with at least half of this new capacity potentially attributable to non-domiciled CDL holders.

“It is not a stretch to believe that at least half of the new capacity has come from non-domiciled CDL holders,” wrote Craig Fuller. We know that 200,000 CDLs were issued, but it is unclear how many of these are still active and currently driving over the road. Regardless, the industry has suffered greatly from the surge of new truck drivers and the sudden influx of capacity. These new participants have contributed significantly to market oversupply conditions, resulting in the longest freight recession in history."

Fuller further emphasizes the correlation between these licenses and industry-wide disruptions, pointing to "significant regulatory challenges that must be addressed to restore balance to the freight transportation sector." The emergency rule tightens controls by mandating stricter verification processes, which could reduce improper licenses and shrink available trucking capacity. This shift is expected to alleviate oversupply but poses risks for shippers and carriers, as executives grapple with when the crunch will materialize.

The rule addresses not just economic imbalances but also fraud and safety risks in supply chains. By enforcing federal standards, it could prevent future abuses, though the immediate effect on freight rates and availability is unpredictable. Overall, this development underscores the need for robust regulatory oversight in an industry vulnerable to exploitation, potentially signaling the end of the prolonged recession while introducing new challenges for market participants.