Ponzi Scheme in the Trucking Industry: Red Flags Investors Missed

Introduction

The promise was enticing: a thriving trucking company, high returns, and assured payouts. Investors poured in $158 million, dreaming of profits. But behind the scenes, it was all a lie. This is the story of a massive Ponzi scheme run through a purported trucking business, and how it eventually unraveled with its operator sentenced to 23 years in prison justice.gov. Ponzi schemes are one of the oldest and most destructive forms of investment fraud, and this case highlights classic red flags and the role of forensic accounting in uncovering the truth.

The Royal Bengal Logistics Scam

Sanjay Singh, a 45-year-old from Coral Springs, Florida, was the founder and president of Royal Bengal Logistics, Inc. (RBL), an over-the-road trucking company. To outsiders and potential investors, RBL appeared to be booming. Singh pitched it as a highly profitable enterprise and encouraged people to invest. Between January 2020 and his arrest, Singh and his co-conspirators raised over $158 million justice.gov.

Misrepresentations and the Ponzi Setup

According to the DOJ, Singh and his team lied about nearly everything. They made false claims about RBL’s profitability, the safety of the investment, and how investor money would be used justice.gov. They claimed returns would come from trucking profits. In truth, the trucking business was losing money.

Instead of funding growth, Singh used new investors’ money to pay earlier ones—a textbook Ponzi scheme. This illusion of success kept attracting more victims. Singh and his partners also skimmed huge sums for personal use, buying time with each new investment justice.gov.

The Collapse and Conviction

As expected with Ponzi schemes, RBL collapsed when investor withdrawals exceeded new contributions justice.gov. By November 2024, a jury convicted Singh on multiple counts, including wire fraud and conspiracy. In June 2025, he received a 23-year federal prison sentence justice.gov.

Red Flags and Investor Lessons

Though it involved a trucking company, this scam followed a familiar script. Here are some red flags investors should watch for:

Guaranteed High Returns: RBL promised high, steady returns. No real investment can guarantee this without risk.
Vague Financials: Singh hid losses and provided false documentation. Always demand transparent, audited financials justice.gov.
Pressure to Reinvest or Recruit: Victims were encouraged to reinvest or refer others. This behavior often sustains Ponzi schemes.
Exploiting Trust: Though not confirmed in Singh’s case, many schemes prey on tight-knit communities where trust is high.
Unclear Business Models: Singh used industry jargon and vague claims about trucking profits. If you can’t understand the model, stay cautious.

A forensic accountant could have spotted these red flags. By tracing cash flows, they would have found investor money funding other investors—not business operations.

The Human Toll and Recovery Efforts

Ponzi schemes ruin more than bank accounts. Victims often face broken trust, stress, and lost savings. RBL investors likely included retirees and working professionals who believed they were making a smart choice.

After the collapse, courts typically appoint receivers and forensic accountants to trace and recover assets. In Singh’s case, this may include trucks, real estate, or any remaining cash. While full recovery is rare, every dollar counts.

Whistleblowers are also crucial. Often, a victim who questions late payments or an outsider noticing discrepancies sparks an investigation. Regulators like the SEC monitor for unregistered offerings and complaints that can expose fraud.

Conclusion: Fighting Ponzi Schemes with Forensic Expertise

This trucking company fraud reminds us that Ponzi schemes can appear in any industry. When something sounds too good to be true, it probably is. Ask questions, demand evidence, and investigate thoroughly.

If fraud is suspected, firms like Truescope Consulting provide expert forensic accounting services to trace funds, testify in court, and help recover assets. These professionals are essential in uncovering the truth and fighting for justice on behalf of victims.