News Summary
A family-owned business in San Francisco, Galleria Tile, suffered a $175,000 loss from a cargo theft scheme. A man impersonating an AECOM employee placed fraudulent orders totaling nearly $200,000. Despite investigation efforts, recovery rates for cargo theft remain low, with an increase in such incidents reported in Baltimore. The case highlights the vulnerability of businesses and the need for rigorous verification practices.
San Francisco, CA – A family-owned business in San Francisco has fallen victim to a sophisticated cargo theft scheme, resulting in the loss of $175,000 worth of flooring materials. Galleria Tile, managed by Claudia Visona, shipped nearly $200,000 in products to Baltimore under the false pretense of a large construction order from AECOM, a prominent construction firm.
The scheme, which started in August, involved a man posing as an employee of AECOM who identified himself as Johnny Kwok. Kwok contacted Galleria Tile and placed a rush order for flooring materials, avoiding a standard requirement for a 50% deposit by asserting that AECOM’s credibility allowed for net-30 payment terms. Visona proceeded to send an initial shipment of 25,000 square feet of tile to a storage facility in Baltimore.
After the first order was shipped, Visona sought confirmation about payment from Kwok. Instead of addressing the payment, he requested additional materials. Following this, he placed a larger order of 41,000 square feet of luxury vinyl plank, further assuring payment for both shipments by September 26.
As concerns grew over the legitimacy of the situation, Visona hired a private investigator. The investigator discovered that no employee named Johnny Kwok worked for AECOM and confirmed that the scammers used a fraudulent domain and website. Communications with drivers who allegedly delivered flooring for AECOM led to unanswered questions, as the information provided could not validate any legitimate orders. Attempts to contact the numbers provided led to immediate hang-ups.
Law enforcement involvement, including reports filed with the San Francisco Police Department, resulted in little progress in recovering the losses. Verisk CargoNet, an organization that tracks cargo theft incidents, reported that recovery rates for stolen cargo are distressingly low, with only 3 to 4 out of 100 stolen loads being recovered.
According to recent data from CargoNet, there has been a significant increase in cargo theft incidents in Baltimore, with average losses skyrocketing from nearly $120,000 to over $312,000. The second quarter of 2025 observed 884 supply chain theft incidents in the United States and Canada, a 13% increase from the previous year. Theft by deception now represents nearly one-third of all cargo theft reports nationwide. Evolving scams feature sophisticated documentation designed to appear credible, encompassing emails and invoices.
Experts, including Keith Lewis from Verisk CargoNet, emphasize the importance of businesses verifying orders by directly contacting companies using confirmed phone numbers. The incident has raised significant concern for the family legacy of Galleria Tile, which has been operating for three generations. Visona highlighted the potential impact of the loss on her family’s business, expressing worry that their heritage might be jeopardized.
In response to rising theft problems, federal lawmakers have introduced the Combating Organized Retail Crime Act (CORCA), aiming to enhance penalties for cargo theft and streamline inter-agency communication regarding investigations. Persons affected by cargo theft are encouraged to report incidents to local law enforcement and their insurance providers, as well as to the National Insurance Crime Bureau’s hotline.
This incident not only highlights the vulnerability of businesses to such scams but also underscores the broader issue of cargo theft on a national scale. As the industry grapples with increasing theft rates, companies are urged to adopt rigorous verification practices to protect themselves from becoming the next victims.
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HERE Resources
Cargo Theft Scheme Strikes Baltimore Flooring Business
Additional Resources
- WMAR: California Business Loses $175K in Cargo Theft Scam
- Recycling Today: Scrap Theft Alerts
- CBS News: Freight Train Cargo Thefts
- Truckers News: Cargo Theft Among Top Trucking Stories
- Google Search: Cargo Theft
