The owners of J&M Trucking in Lebanon, Mo., were convicted Wednesday for a scheme that defrauded shipper Marine Tracker of nearly $1 million.
James Keith Ivey, 52, and his wife, Melinda Kay Ivey, 43, were found guilty of fraud and money laundering at a two-day bench trial before a federal judge.
The Iveys submitted more than 2,550 false invoices to Marine Tracker, a boat maker, between 2006 and 2009, costing the shipper at least $924,101.
The couple worked with co-defendant Paul Ray Hunting, 39, of Paso Robles, Calif., who plead guilty in March. Hunting received about $265,775 from the scheme.
Hunting inflated the number of billable miles on Tracker’s purchase orders, and received a portion of the additional money in cash, according to the U.S. District Attorney's office in Kansas City, Mo.
The Iveys and Hunting added 158 miles to each Marine Tracker purchase order, which initially generated an additional $300 in revenue per trip for J&M Trucking, split three ways.
The Iveys met Hunting every few weeks, usually in a parking lot, and paid him his share of the fraudulent proceeds in cash, the Justice Department said.
The co-defendant have not yet been sentenced. The case was heard by Judge Richard E. Dorr of the U.S. District Court for the Western District of Missouri.