‘Why is something not being done?’: This 1 building in Texas has 20 separate trucking companies registered to its address, investigation finds — why that’s illegal and a huge safety concern

Prax says the practice is illegal.

When a company registers with the FMCSA, the address it gives must be a physical location. Inspectors from the administration must be able to inspect the location, and be able to review safety and driver records there. The WFAA investigation found that in many cases, no one from the registered businesses were on-site at their listed addresses.

These companies allegedly operating outside the law may seem shady, but you may be wondering what it has to do with you. The truth is that while not all companies that use a virtual address are fraudulent, Prax and other experts say that it’s a red flag as many bad actors access the system in this way.

As WFAA reports, federal data shows that “fraudulent carriers have crash rates 80% higher than those who follow the rules.”

“When you're driving down the road with your kids in your car, and there's some guy next to you that maybe got his authority illegally ... are you really safe next to that guy?” Prax told WFAA.

Why trucking businesses dodge FMCSA rules

Prax told WFAA that these carriers often use virtual addresses or P.O. boxes to avoid regulators’ scrutiny.

He detailed his company’s investigation into one address in California that had nearly 700 trucking companies registered to that location. Prax said there’s a sign out front that says, “No Trucks Allowed.”

Federal records also show that about 500 of the companies listed at this address use the same phone number and email. When WFAA reporters phoned, they found the number always went to a voicemail system that asked for a code, and they were unable to leave a message at all. Prax said that he flagged this to federal regulators two years ago, but nothing appears to have happened since then.

The FMCSA said in a statement to the news station that it was “familiar with complaints related to the Signal Hill ... address.”

“If we all know about it, and we reported it, why is something not being done?” Prax said.

“The Agency has confirmed that the address is a legitimate business address for a motor carrier consultant who represents many small motor carriers based in California,” the FMCSA statement said.

However, this is in contradiction to their own rules: “A motor carrier may not designate the office of a consultant ... as the motor carrier's principal place of business if the motor carrier is not engaged in operations related to the transportation of persons or property at that location.”

The scope of the problem

Prax told WFFA that in 2023, he caught a massive surge in carriers registering with either a virtual address or P.O. box.

“We built the robot to kind of find those, and we would notify FMCSA that says, ‘hey, this guy should not be issued his authority,’” he said.

Prax found as many as 200 registrants per month with these types of illegal addresses, and reported them to the FMCSA. Prax said the agency did flag those applications and issue warning letters, but he feels it wasn’t enough.

The issue is certainly on the minds of the leadership within the FMCSA, however. WFFA reports that on an industry podcast last year, Director of FMCSA Registration Ken Riddle said, “How do we prevent bad actors from getting into the system? ... How do we prevent them from falsifying registration?”

The current solution is facial recognition technology, designed to verify new applicants to the FMCSA. However, it’s only a requirement for new applicants right now.

“From a registration perspective, we want to be able to verify the identity of the individual registering,” Riddle said.

Prax says it’s not enough.