June 19, 2018

Meriden transport broker gets year in prison for fraud

A Meriden truck-transport broker will spend a year and a day in federal prison for defrauding more than $600,000 from Connecticut manufacturers who relied on his shipping services, prosecutors say.

Digby Kerr, 50, also was ordered to serve three years of supervised release and to make $603,489 in restitution at his sentencing Monday in New Haven federal court following his March 26 conviction on one count of mail fraud, the Connecticut U.S. Attorney's Office said.

Kerr faced as long as 20 years in prison, authorities said. He is due to report to prison on July 23.

As previously reported, Kerr owned Transportation Cost Management LLC, which brokered shipping contracts between manufacturers and trucking companies, the FBI and prosecutors said.

TCM would get shipping invoices from trucking companies, process them, and forward the billing information to the manufacturers, who would then send funds to TCM to pay the trucking companies, authorities said. TCM would then send confirmation reports to the manufacturers indicating that payment had been made to the shippers. TCM drew fees for this service.

But from around Dec. 2016 to April 2017, Kerr admitted that he and TCM failed to remit more than $603,400 in payment funds that TCM received from four manufacturers to the trucking companies that transported goods for those victim producers.

Kerr also arranged for e-mailed confirmation reports to the victims, indicating their payments had been forwarded to the trucking companies.

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