Employees who are part of a multi-million dollar moving scam in Chicago now face federal prison time.
The move marks the latest development in a scam we first warned you about four years ago.
Federal prosecutors say the company used the name "New City Moves" and misrepresented itself as a well-known, local moving company called "New City Moving." It was only three letters off, which was enough to fool many customers.
The scheme had more than 800 victims over three years and scammed customers out of more than $3 million.
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Federal prosecutors said the scammers posted fake reviews online, and would quote customers very low prices over the phone.
But once items were in the moving trucks, customers were forced to pay sometimes triple the original quote to get their stuff back.
Now, prosecutors say the owner of the company is considered a fugitive and two of his employees are facing up to 20 years in prison for their role in this multistate moving scam.
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Authorities say the company also operated under the names "Great Moving USA," "Green Movers," "Cross Country Moving and Storage" and "Movers Consulting."
The company’s scam had been going on since 2017, but it first got on NBC 5 Responds' radar in 2020. That’s when Marion Schmekel said she was duped into hiring the imposter moving company, New City Moves, for her move from Aurora to Kansas. But when the moving truck arrived in Kansas, she says, they demanded thousands more than what she was quoted.
“The price just kept on adding and adding and adding, up to $2,000 more than my original quote,” said Schmekel, who added that her items were delivered two weeks late.
After Schmekel's experience. "New City Moves" was sued for copyright infringement by the Chicago company who’s name it ripped off. A judge ordered the scam company to pay more than $100,000 in damages and fees.
“I’ve moved several times and never run into something as crazy at this,” said Schmekel.
NBC 5 Responds previously tried to reach out to the company, but never heard back.
According to a study by Hire-A-Helper and data from the Better Business Bureau, moving scams are on the rise and consumers lost an average of $836 to moving scams just last year.
So here is a quick rundown of what you need to watch out for if you’re looking for a moving company:
Beware of companies that:
-only do phone estimates
-provide suspiciously low bids
-ask you to sign a partial or blank contract
-charge by cubic feet rather than weight
-have a name suspiciously similar to another local moving company
Things to do before hiring a moving company:
-Check The Mover’s License In The Federal Motor Carrier Safety Administration Company Database-keep an inventory of all your possession
-ask about what your rights are if your items are damaged or the delivery is late
-Get a written estimate from several movers and compare them. The estimate should be based on an actual in-person inspection of your household goods.
-Make sure the mover is authorized to move your household goods and insured.
For more tips and resources visit: https://www.fmcsa.dot.gov/protect-your-move
