Six Chameleon Carriers, False Federal Filings, Dozens of Defrauded Consumers. The Sentence: Zero Prison.

On May 8, 2026, the U.S. District Court for the Eastern District of New York sentenced Yarin Nadel, also known as 'Joe Nadel,' for his role in operating six affiliated household goods moving companies that defrauded dozens of consumers and filed false documents with FMCSA to conceal a chameleon carrier network.

The sentence: no imprisonment. Three years of probation including six months of home detention with location monitoring. Restitution of $119,563.82 payable at 10% of gross monthly income. Forfeiture of $168,156. A $100 special assessment. No fine.

The case (1:19-cr-00493-ENV) was investigated jointly by the U.S. Department of Transportation Office of Inspector General and the Federal Bureau of Investigation. The indictment was filed on October 25, 2019. The defendants pleaded guilty in June 2021. The sentencing took place nearly five years after the guilty plea and seven years after the fraudulent scheme began.

Michael Nadel, a resident of Queens, New York, was an owner, officer, and operator of several affiliated companies engaged in the interstate transportation of household goods. Yarin Nadel, also a resident of Queens, was a co-owner and co-operator.

The indictment identified six entities, collectively referred to as 'the State to State Companies':

1. Around the Clock Moving Services, Inc. New York corporation, Queens, NY. 2. Direct Van Lines Services, Inc. New York corporation, Queens, NY. 3. State to State Moving NY Inc. New York corporation, Queens, NY. 4. Green Peace Transportation LLC. Pennsylvania limited liability company, Levittown, PA. 5. Moving State to State LLC. New York limited liability company, Queens, NY. 6. State to State Moving Group LLC. New York limited liability company, Queens, NY.

The entities were not independent businesses. They were successive incarnations of the same operation, each registered after the previous entity attracted regulatory attention or had its authority revoked.

The indictment documented a fraud scheme operating from approximately February 2018 through July 2019. The scheme followed a pattern identical to the broker-carrier fraud pipeline documented across Trunk's research:

1. The defendants quoted estimated charges for moving services that they had no intention of honoring.

2. They misrepresented the number, ownership, and USDOT registration of the trucks that would transport customers' goods.

3. They misrepresented the number of movers who would transport the goods and various quality control measures.

4. On or after the agreed pickup dates, employees arrived at customers' residences, often in rental trucks that were too small or too few to accommodate the volume of goods.

5. At various points in the loading process, and often after customers' goods were completely loaded, the defendants told customers by phone, email, and in person that additional fees were due due to 'unforeseen circumstances.' The additional fees often exceeded the 10% increase restriction for non-binding estimates set forth in 49 CFR 375.703(b). Payment was demanded in cash.

6. If customers refused to pay the inflated fees, the defendants threatened to keep the customers' belongings in storage and charge additional storage fees.

7. Many customers paid the inflated fees to get their belongings back. In many instances, the goods were delivered weeks or months after the scheduled delivery dates, and valuable items were damaged or missing.

The indictment stated that the defendants, together with others, 'wrongfully obtained at least $100,000 in additional fees from dozens of customers of the State to State Companies, and caused damage to the customers' personal belongings.'

Section III of the indictment, titled 'The Reincarnated or Affiliated Motor Carrier Scheme,' documented the specific mechanism the defendants used to evade FMCSA oversight.

Federal regulations require motor carriers to identify 'reincarnated or affiliated motor carriers,' defined as carriers with common ownership, management, control, or familial relationship (49 CFR 385.1003). Section 385.1005 prohibits two or more carriers from using common ownership to avoid compliance or conceal non-compliance history.

The defendants violated these regulations systematically:

On November 20, 2015, Michael Nadel applied for a USDOT number for Around the Clock Moving Services, Inc. FMCSA contacted the company, conducted a site visit, and scheduled a focused commercial investigation. On September 16, 2016, prior to the scheduled appointment, Michael Nadel completed a Form OCE-46 (Request for Revocation of Authority Granted) under penalty of perjury, identifying the reason as 'Out of Business.' Around the Clock's operating authority was revoked on October 31, 2016.

The company was not out of business. The defendants continued operating through the remaining State to State Companies, each time filing false registration documents that concealed the connection to the previous entity.

The indictment documented four specific false filings, each submitted under penalty of perjury:

September 21, 2016: Michael Nadel submitted a Form MCS-150 for Around the Clock Moving Services, Inc., identifying himself as president and providing a fraudulent principal address and mailing address.

September 14, 2017: Michael Nadel submitted a Form MCSA-1 for Direct Van Lines Services, Inc., identifying himself as owner and failing to disclose Direct Van Lines' affiliation with Around the Clock Moving, whose operating authority had been inactivated.

February 12, 2018: Yarin Nadel submitted a Form MCSA-1 for State to State Moving NY Inc., identifying himself as president, providing a fraudulent principal address and mailing address, and failing to disclose State to State Moving NY's affiliation with Direct Van Lines and Around the Clock Moving.

April 2, 2018: Yarin Nadel submitted a Form MCSA-1 for 'Yarin Nadel' (as a company), identifying himself as CEO. He disclosed the affiliation with State to State Moving NY Inc. but failed to disclose affiliations with Around the Clock Moving and Direct Van Lines.

Each successive filing concealed one more link in the chain. The MCSA-1 form requires applicants to disclose affiliations with other FMCSA-licensed entities. The defendants answered falsely, under penalty of perjury, on every filing.

The grand jury returned a six-count indictment:

Count 1: Conspiracy to Defraud the United States (18 U.S.C. 371). The defendants conspired to impede, impair, obstruct, and defeat the lawful government functions of USDOT and FMCSA in the enforcement of safety regulations governing commercial motor vehicles.

Counts 2 through 5: False Statements (18 U.S.C. 1001(a)(3), 2, and 3551 et seq.). Each count corresponded to one of the four false FMCSA filings documented in the overt acts section.

Count 6: Conspiracy to Commit Wire Fraud (18 U.S.C. 1349 and 1343). The defendants conspired to defraud customers and potential customers by means of materially false and fraudulent pretenses, representations, and promises, transmitted by wire communication in interstate commerce.

The indictment also included a criminal forfeiture allegation under 18 U.S.C. 981(a)(1)(C) and 28 U.S.C. 2461(c).

Both defendants pleaded guilty in June 2021. Yarin Nadel pleaded guilty to Count 6 only (Conspiracy to Commit Wire Fraud). Counts 1 through 5 were dismissed on motion of the United States. The false statements charges, documenting four specific instances of perjury on federal forms, were dropped.

Judge Eric N. Vitaliano of the U.S. District Court for the Eastern District of New York imposed the following sentence on Yarin Nadel on May 8, 2026 (judgment filed June 29, 2026):

Imprisonment: None. Probation: 3 years, including 6 months of home detention with location monitoring. Restitution: $119,563.82 (joint and several with co-defendant). Payable at 10% of gross monthly income while on probation. Forfeiture: $168,156. Fine: None. The court determined the defendant does not have the ability to pay. Special Assessment: $100.

The victim list and restitution details are under seal. The consumers who were defrauded may not know they are named as victims in a federal judgment or that they are owed a share of $119,563.82.

Special conditions of supervision require Nadel to cooperate with the U.S. Probation Department in the investigation and approval of any self-employment, to provide full disclosure of all business records, and to refrain from opening new financial accounts without approval. He is prohibited from communicating with anyone he knows to be engaged in criminal activity.

November 2015: Michael Nadel applies for USDOT number for Around the Clock Moving Services. September 2016: Michael Nadel files false MCS-150, then files OCE-46 claiming 'Out of Business' before scheduled FMCSA inspection. October 2016: Around the Clock's authority revoked. September 2017: Michael Nadel registers Direct Van Lines, concealing affiliation. February 2018: Yarin Nadel registers State to State Moving NY, concealing two prior affiliations. April 2018: Yarin Nadel registers under his own name, partially disclosing affiliations. February 2018 to July 2019: Active consumer fraud scheme, $100,000+ extracted from dozens of customers. October 25, 2019: Federal grand jury indictment, 6 counts. June 2021: Both defendants plead guilty. May 8, 2026: Yarin Nadel sentenced. Zero prison. June 29, 2026: Judgment filed.

From the first false filing to sentencing: nearly 10 years. From indictment to sentencing: nearly 7 years. From guilty plea to sentencing: nearly 5 years.

1. The chameleon carrier mechanism is documented in a federal indictment with specific dates, forms, and false statements. The OCE-46 'Out of Business' filing to preempt an FMCSA inspection, followed by registration of a new entity concealing the affiliation, is the exact playbook used by chameleon operators across the HHG industry.

2. FMCSA's registration system did not detect the false filings. The MCSA-1 form asks applicants to disclose affiliations with other carriers. The defendants answered falsely four times. FMCSA did not verify the answers before granting authority.

3. The DOT Inspector General and FBI can investigate and prosecute HHG chameleon networks. They did it here. But the timeline (10 years from first offense to sentencing) and the outcome (zero prison) raise the question of whether criminal prosecution produces a deterrent effect proportional to the resources invested.

4. The false statements charges (Counts 2-5), which documented perjury on federal FMCSA forms, were dismissed as part of the plea agreement. The defendants filed four false documents under penalty of perjury and were not convicted of any false statement.

5. The victim list is under seal. Consumers who were defrauded cannot access the judgment to learn whether they are owed restitution. The restitution itself ($119,563.82 for dozens of victims) averages less than $6,000 per consumer if divided equally, and is payable at 10% of monthly income with no deadline.

6. A fraud operator reading this case learns that the worst-case scenario for operating six chameleon carriers, filing false federal documents under penalty of perjury, and defrauding dozens of consumers over multiple years is: no prison, home detention for six months, and restitution payments calculated as a percentage of income. The penalty structure does not exceed the profit from the scheme.