In the world of despicable business practices, there are corrupt bankers, Ponzi Schemers, Enron Executives, and Eleets Transportation. You’re going to want to read this one to the end, folks. Trust me.
Only a short while ago, Eleets Transportation was a profitable company with a fleet of 80 trucks. It was founded in 2007, and by 2011 it had 240 employees and $127.5 million in revenue. It was family owned with its chairman and CEO owning 80 percent of the company. It took just about a year for this once robust company to take such a drastic nosedive that they shut their doors permanently in November of 2012.
The shutdown was so abrupt that loads were being booked and delivered right up until employees were told to pack up their things and go home. According to one minority shareholder, Stephen Davie, this abrupt shutdown meant that owner-operators driving for the company never got paid and are owed an estimated $8 million dollars.
The trouble started when Allen Steele, the chairman and CEO, brought on his son Scott as the company’s vice president of trucking operations and they decided to increase the size of their fleet to 300 trucks and 500 trailers. According to Davie, he and other employees objected, but soon even though the brokerage side of Eleets was doing well, the trucking side was “losing money hand over fist.”
During the downward spiral, seven different companies showed interest in buying Eleets and saving it from itself, but the Steele family refused. As they own a majority of the company, employees and other shareholders could do nothing but stand by and watch as their livelihoods were driven into the ground.
When the company finally shut down, in addition to its $8 million in unpaid wages, it owed the bank an additional $5.7 million. Since the company defaulted on the loans, the bank took possession of all the companies remaining assets.
So Allen Steele, the CEO of a company that went under owing a total of around $13.7 million has started another company just a block away from his old office. Since he himself technically owes nothing to the bank or his former employees, his new company is debt free. Are you ready for this? This is the part that will really get you. According to Davie, Steele bought $200,000 worth of equipment that was confiscated from his old business in order to furnish his new business from the bank for only about $9,000.
In total, this guy left other people on the hook for $13.7 million, and for a reward, he gets to go on a 95%-off shopping spree for everything his new company needs. Oh, and according to his LinkedIn profile, Scott Steele has already been hired as the national sales manager for the new business.
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Source: landline, bizjournal
This has to stop, this is why trucking gets a bad name. What is the name of this new company!!! We need to put the word out so no one uses them ever. How do they sleep at night?
Whats New companies been doing this for years I worked for 1 in California in the 90,s that did this same thing.
this is why the trucking industy is haveing problems. People like this should be shut down for ever D O T should go and take evrything from. The otherthing is Their Broker side was new a people should Never use new brokers out there as these Are the one that are ripping off the drivers and driving the freight rates into the ground.
It sounds like there last name says it all…what’s the big surprise a couple more scum bags in suits
Why is Landline protecting the name of the new company? Does Landline/OOIDA fall in the same group of not protecting the truck owners?
This is unbelievable. I think we have government regulation in all the wrong places. Trucker need to beware of companies like this one as well as dealerships trying to gouge prices on parts and repairs. If anyone finds out the name of the new company please let us know!
Happened to about 50 dump truck drivers here in West Texas 5 years ago…guy came in from Oklahoma and started and environmental business. He was getting paid all along and strung us out for 6 months claiming he hadnt got paid himself and basically ruined our bank accounts..All total,
1.5 million in claims, mine was only at $98,000….but it was enough to put me out of business…sickest feeling in the world when he left all his equipment and workers for his upstate getaway with no charges filed against him ever
I ‘m shocked…just shocked that somebody’s piss-poor business decisions would send them into bankruptcy and that a bank would sell a reclaimed depreciated asset at or below fair market value to recoup a portion of their loss.
I wish all these politicians and business executives would take lessons from the solar panel industry. if you really want to make money boys…that’s how it’s done.
ill never understand how these animals do sleep at night Nancy. what sucks is i used to be a little crooked when i drove trucks trying to get an extra load here and there when i was real young and changed my ways completely…only to be rearended and put out of business 20 years down the road…despicable people!
Nothing new here. Just look at most of your larger trucking companys, such as Swift. How does anyone believe they became the largest trucking company in America. It wasn’t because of their profits. They bought companys sych as Dick Simons Refers, MS Carriers, etc. Then they went on to file bancruptcy after bancruptcy. It’s about being the largest, not the best. Then they branch off even further with former board members & investors creating other large companys such as Knight, which is only one step up from Swift.
This is why brokers, especially big ones are only cancer to trucking industry, they steal every penny from drivers and continue living happy lives, while DOT turns the blind eye on this and only harrasses drivers and small trucking companies with every chance they get. This is what they call great place to be in, bigger the crook you are better off you’ll be, no place for honest people.
mega truck in calforina is doing the same thing
ARTICLE IS FALSE they are protectng the company that AlIn Steel NEVER started. Do you think another BANK would load money to him open a new business? Eleets went out of business because of their TRUCKS losing more money than the brokerage Made. Not from being a bad business practice broker. How many trucking companies go out of business yearly? There has to be another side to the story. Why is it that this Davie guy keeps starting stuff? Maybe because he was a shareholder who got burnt on a bad investment. Investors lose money daily. Go look up history on Al or Davie see if they done this stuff before.
Article is correct and you are an accomplice!
The comment above mine by “John Dow” was posted from Jacksonville, FL, the same town as Eleets’ corporate headquarters. Hmmm…
The company he went to work for after the fall of eleets was Scott logistics. And after the Davie press of the 200k worth of property that Scott logistics purchased, Scott logistics did not like the bad press, and Allen Steele was out of another job.
And the saga goes on. he has started another logistics company, I will for now cut that company some slack. If there is enough interest, I will let it out. Cause it could hurt a large company that produces a food product.
Soooooo what is the name of the new company? I briefly used the Scott Steele hint on Linkedin and found nothing….
Hey “John Dow” how much did you lose from these crooks? I lost plenty….
Yes this is what has get us owner operators in really bad situations,we have to be aware of this people, we worked for Richard benavidez out of Downey ca. a few years back and he did the same thing to a whole group of O/O he planned this really good as well.. he keept our pay for five weeks so he could put away money to start another company.
Motor Freight, Inc. got burned for $6,700 but we are going after shippers for our freight payment. 14 million does not include the $40 million brokered freight like us. Month before they closed the doors they were offering us $3 per mile out CA to FL. This is Criminal Case but they treat it like Civil Case. Los Angles District Attorney locked 2 guys for 7 years for similar matter.
Steve it is not just the brokers it is the cheap young drivers who stand in line to haul the cheap stuff
Sons. Why do good companies always go to heck in a bucket when the sons get involved? I remember the Arrow fiasco, and a few others. Just because the Ol’ Man can run a trucking company…
With someone elses money under their pillow, that’s how. Bankruptcy law has to change.
This is why drivers who work for a given company need to form it as a Co-Op and have a stake & voice in the decisions made by the said company… Its vital & requires whatever it takes to get there, money or otherwise
People talk about how bad pyramid schemes are but in reality when one or two own the whole company an make all the decisions usually based on self serving greed this is nothing more than a pyramid scheme..All of Evil Life Sucking Corporate America is designed this way …The top control it all good or bad..Had the drivers all had a say ,they wouldn’t put themselves out of business nor would they run for garbage rates while expanding the fleet at a financially dangerous pace sure to bring the company down in ruins.
Had the drivers been allowed a stake & say in the direction of the company they probably would have been able to double possibly triple their income with more home time while upgrading aging equipment at the same time. Think about that. How could that even be possible you say?
It’s happening everyday with some odd 300 Co-Op and growing companies of all sorts across the country..
Don’t believe me ?
Look it up…Here is one popular example reflected in Michael Moore’s movie “Capitalism: a Love Story”
Alvarado Street Bakery is a worker-owned bakery located in Petaluma, California that produces certified organic whole grain breads and bagels.
Alvarado is organized as a worker cooperative and each employee receives one share in the cooperative. The shares grant each employees an equal vote on business matters, including employee benefits, salaries and the reinvestment of profits.
As of 2009, more than half of the employees had been with the company for over 15 years and the average worker earned between $65,000 and $70,000 a year. An that’s just to bake bread…How many bakers you know that make that king of money now or then? I’d say they would be doing well to make $10 bucks an hour as a corporate company slave thee days..
Until we get a handle on these money sucking leeches of the trucking world…Nothing will change…
Is it doable ? Of course it is…But will we as a Country Wide CDL Holders Co-Op Collective..Think of the persuasive power that would have……I guess that will remain to be seen as push comes to shove….I guess it’s a matter of how much more screwing can we all stand before we break..I know many of my trucking friends had to throw in the towel the last few years..They now sit at home broke ,disgusted an feeling like failures to their families..Do you think the CEO’s care? Humph… Not a chance..
I know I’d be ready to join in a heartbeat if I knew everyone in the company had a shared vested interest in not only my success but of all the employees there…As many of you know when you work for yourself your more conscious of what it takes to see things through to a positive result for all rather than the lowly paid company
driver attitude of “Its not mine, They make all the money ,Why should I care ,I can quit tomorrow…
Oh well I guess I can always dream….
That’s not suspicious or anything, is it? Hmm….
New company name is entrants…web is etranscarriers.com.. I know they benefited some from the trailer bridge “situation” too…so I wouldn’t be so quick to assume that a poster is lying. Wouldn’t you be more likely to research and have in put if you were an investor or someone whom, suffered a loss from there gain.
Typo….etrans
example: Arctic Express ceo in the 90’s. screwed owner ops out of escrows,etc. filed bankruptcy and went on to start Elite Express in Columbus,oh. He Put all his profits up his nose,sold out to Navaho in Commerce City,co.
I am new to trucking and am doing research on companies to work for.After reading this article and comments I would like to know why are there no unions in trucking,if there are unions why the hell arn’t they standing up and taking action for the drivers.If there are no unions Truckers need to band together and form unions to protect the truckers so things like this don’t happen and they can’t rip you off out of wages or miles ect. If trucking is to survive including drivers this needs to be done yes I understand everyone has different opinions,ideas ect. but for the good of the drivers and the industry this must be done specially for new drivers and future drivers like my self.I don’t get it all I hear is bitching but no one wants to band together and do anything about it.All it takes is one driver to start and rise up start a following and the rest will happen this seriously needs to be done what are you afraid of.This is coming from someone who has served there Country if someone or you all don’t there will be no trucking for myself or others to get into.Unions protect workers and drivers the industry needs it now more than ever.
How can they hide behind bankruptcy laws?
Contact the attorneys and inform them of this.
Also hire a lawyer and sue him.
This way you can lock up his assets, force him to give up all the money he made off the business and bankruptcy.
A bankruptcy judge will want to recover as much as possible. Since he lied in the paperwork.
I agree with Nancy. There are enough drivers and trucking companies to handle the freight, without putting a crook back into business. Another driver said this company’s new name is Etranscarrier.
You’d think with today’s economy and the FMCSA regs, the government would stick their nose into something like this. Guess the politicians want too much money, or don’t care.
Can we do something about it? Absolutely, but what?
What about a company started by drivers, owned by drivers, and run by drivers? And I don’t mean owner/operators. They are a truck driving breed all their own. Most drivers can’t afford to be O/O, nor do they have the knowledge to do it. Those O/O guys have already learned that trucking is a business, not a job.
Come on, where’s a genius when you need one?
As someone who worked for Eleets, I can tell you most of what Stephen Davie has said is inaccurate. He was involved in EVERY aspect and decision the company Eleets made. Al Steele tried everything he could to save the company and sought out several investors and other companies to purchase Eleets when a plan to purchase the trucking division of Trailer Bridge fell through at the last minute. Eleets suffered a SUBSTANTIAL financial windfall when that purchase fell through (to the tune over $4M) that depleted our cashflow. The bank, Wells Fargo, did not understand the transportation business at all and had what was left of our employees asking them to lie to our customers so payment would be sent to the bank and not the people that deserved it. Our employees refused to do this but the bank brought in their own people to speak on behalf of Eleets as if they worked with us. At the same time this was going on, Super storm Sandy hit and Eleets was the sole transportation provider for the Red Cross. Wells Fargo decided they wanted to cut off tchecks and funds to our drivers and supply shipments were cut off. The bank told us we had to secure a buyout with another company, which Al pursued with a large company to keep most of the employees in place. At the last minute, key employees jumped ship to Trailer Bridge (including the COO) which caused the deal with the larger shipping company to fall through. The bank shut us down that night.
Al is not a bad man. He took care of EVERY employee that ever walked through our doors and gave anyone who wanted to work a chance. The real problem is here a perfect storm of bad situations that we couldn’t ride out with a financing company that has zero knowledge of the trucking industry.
When Allen Steele borrowed one Million dollars of company equity, and the equity line from wells fargo stipulated that was a no no, they Wells Fargo pulled the plug. Davie had no knowledge of that transaction. Now my question is where did that money go, as that happened right at the point of the business closing it’s doors.
This is for the bankruptcy courts to figure out. But there is plenty of wrong doing.
Whoever is saying that Eleets is connected with ETRANS is full of it. Etrans bought out all of Eleets Dray agents over a year ago and have had no connection with ELEETS. Dave Ware with ETRANS runs a legit operation and is one of the most respected and standup business men that I know. Get your facts straight. I know for a fact. Eleets owes my trucking company about 7,000.00, when they were starting to struggle in October they owed us more and they were trying to get their balance down. i am not defending what they did or what they are doing. But i do know that they are an agent for Scott Logistics.
What this guy needs is a roundhouse kick to the face! He is a scumbag who has created a loyal following of scumbags (as seen on previous posts). John Do Do states “Al is not a bad man.” After reading this guys posts I’m quite confident he didn’t make it past 7th grade (Grammar hehe). So his opinion is deemed irrelevant. I guess if you just stumbled out on the streets after 5 years in the pokie Al is a great guy to work for because you can continue your life of crime with this new venture.
Congrats have fun!
hear ya same thing happened at crete, exellent company untill sonny boy took over
I suppose the reason that the name of the new company wasn’t being released by LL is that the new company has not done anything wr0ng up to this point. Not fair to bad mouth a company you know nothing about. That is just another example of what happens when the kids are brought in and started at the top of the pile. Used to be the son started at the fuel island then graduated to the tire changing dept. Then after a few years doing the get dirty hard labor got to wear slacks in the office running mail and worked their way up the ladder learning how a business is run . Not so today. It seems as though Daddy gets tired of bailing them out of jail for DUI and drugs so gives them a job that ruins the business. No work ethic in today’s generation let alone personal pride.
JON DOE SAID.
” Eleets suffered a SUBSTANTIAL financial windfall when that purchase fell through (to the tune over $4M) that depleted our cashflow. ”
Are you sure you mean this statement? Windfall means profit not loss.
The new company is hickory transport out of Jacksonville fl
Are you sure? They owe me 1200 and not paying!
Invoice is almost three months old and a short paid check was sent which was returned by bank. Their bond is onky 10K and they are not responding.
Hickory Transportation is the new company the Steele family started.I drove for them for a month and left after the Ryder tractors they rent we’re constantly in the shop.The reefer trailers are The worst I’ve ever seen and unsafe,they have electronic logs in the tractors but mine never worked so I used paper logs and I was told do whatever I needed to do to get freight delivered and the safety department would look the other way if my logs were a little off.No Thanks
Some of this is fake news, Hickory Transportation is the new company but it is not owned by Al Steele, its owned by Billy Morris who owns 20 other companies including Bubba Burgers and Peterbrook Chocolate. Morris just has no transportation experience so that is why Al Steele runs it.