June 30, 2023

DOL investigating Postal Service contractor Ameritrans Express amid bankruptcy filing

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Ameritrans Express LLC, a contract delivery service for the U.S. Postal Service, has filed for Chapter 11 bankruptcy amid claims by some of its contractors that they have not been paid since March.

Ameritrans Express LLC, headquartered in Dumfries, Virginia, filed its petition in the U.S. Bankruptcy Court for the Eastern District of Virginia on Wednesday. 

The company was founded by Frederick Amankwaa in 2013 and is a contract delivery service provider for the Postal Service. 

Members of a Facebook group, which was set up by Ameritrans contractors in March, claim they haven’t been paid since then. One member of the group alleges she hasn’t been able to access the money she contributed to her 401(k) account. 

As of publication, Ameritrans’ attorney, Jonathan B. Vivona, had not responded to FreightWaves’ request seeking comment.

According to Ameritrans’ website, the company has mail delivery contractors in more than 30 states and posted job openings earlier this week.  

Mail contractors in several states have filed claims with the U.S. Department of Labor.

“Wage and Hour Division records show an open investigation with the mentioned employer but it cannot discuss additional details until the investigation is concluded,” a DOL spokesperson told FreightWaves in an email on Friday. 

The filing lists Ameritrans’ assets as between $10 million and $50 million and its liabilities as between $1 million and $10 million. Ameritrans stated that it has up to 999 creditors and maintained that funds will be available for distribution to unsecured creditors once it pays administrative fees.

Ameritrans’ largest secured creditors include 13 factoring companies that are owed nearly $3.2 million. 

This is a developing story.

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