The Lawsuit: Legal Action Against Tarik A. Floyd, Deon King, an Anthony Spencer

On January 18, 2023, an amended lawsuit was filed against Deon King, Tarik Floyd, and Anthony Spencer. The plaintiffs, Corles and Ken, allege in their petition that Floyd, the principal of FTF Investments, and King misrepresented the facts to persuade them into investing over $50,000 into Tancil Logistics. The investment aimed to enable the purchase of additional trucks and the hiring of drivers. King and Floyd pledged a return of 40% of Tancil Logistics' monthly profits or a minimum flat fee of $2,000 per month, along with a full refund of the investment at the contract's conclusion.

Floyd negotiated the contract between parties according to the petition. It would seem his role in FTF Investments ostensibly lent credibility to Tancil Logistics and his co-defendant King. According to the petition, Floyd also appointed his best friend Deon King as a board member of FTF Investments.

The petition alleges that Deon King and Anthony Spencer used Tancil Logistics the vehicle as a means to insulate themselves from liability while engaging in fraudulent conduct to induce the Plaintiffs to provide funds, and then reaped the rewards of the money provided by Plaintiffs under the Agreement for their own personal benefit. According to the petition, the plaintiffs unearthed evidence that the defendants, prior to and after entering the contract had solicited funds in amounts exceeding $40,000 from several other individuals not involved in this suit. The Plaintiffs suspect that their investment was exploited to perpetuate a fraudulent scheme to acquire money for the defendants' personal gain, rather than for the operations of Tancil Logistics. Even more worrisome, the facts alleged in the petition seems to suggest that money given by the Plaintiffs went to pay off other debtors as they sought to continue to borrow more money, similar to the referenced Ponzi scheme or fraud that swindled investors out of $40 million.

To induce the plaintiffs to enter the agreement, the petition also alleges Tarik Floyd and Deon King made numerous deceptive verbal representations that they knew were not true. They claimed that:

1. Tancil Logistics had existing interstate freight transportation contracts and pending contracts in Texas before the execution of the Agreement. The petition asserts that this claim was false because the company did not possess its own operating authority or authorization to operate independently in interstate or intrastate Texas commerce as a for-hire carrier. The defendants concealed this fact by refusing to disclose it despite repeated requests from the plaintiffs to view current and pending contracts, as well as other information about Tancil Logistics' operations.

2. The capital provided by the plaintiffs would be used exclusively to purchase or lease additional trucks, in addition to the two trucks the company already had at the time of the contract, or to finalize the purchase or lease of a third truck that King claimed to have under contract at the time. The petition alleges that this claim was false. Tancil Logistics never owned, term leased, or trip leased more than the two trucks that the defendants represented the company to have at the date of the Agreement. On the contrary, from April 2021 to November 21, the company owned, term leased, or trip leased two trucks, and by December 31, 2021, just four months after the contract's execution, the company owned, term leased, or trip leased only one truck.

3. The funds provided by the plaintiffs would be utilized to hire drivers for the additional trucks to be acquired through the contract. The petition claims that this assertion was false. It highlights supporting documentation suggesting that the company never had more than one driver throughout its existence, and it did not hire any additional drivers apart from King.

4. Tancil Logistics was a certified minority firm by the Small Business Administration (SBA). However, the petition alleges that this claim was false since the company is not listed in the Dynamic Small Business Search (DSBS) database, nor is it registered with the Federal Government System for Award Management (SAM). According to the petition, all firms require SAM registration and entry into the DSBS database to obtain any SBA certification (e.g., HubZone, Women-Owned Small Business, Small Disadvantaged Business, etc.)

Here is a snapshot of the company’s webpage. (Tancil Logistics webpage has been removed since the lawsuit was filed).

Exh G - Tancil Logistic Company Background Webpage.pdf

Download PDF • 894KB

5. The claim that Tancil Logistics was awarded a USPS contract is also deemed false, as the company was not eligible for or authorized to perform any Federal contracts. It was not registered with the Federal Government System for Award Management (SAM).

As the lawsuit proceeds, neither King nor Tancil Logistics has fulfilled the contract terms or made any payments to the plaintiffs. Despite multiple requests, the defendants have failed to provide any information or explanation regarding the use of the plaintiffs' funds.

Here is the amended petition.

Giles and Simmons V TL and King First Amended Original Petition (1).pdf

Download PDF • 285KB

While the trucking industry may seem appealing, it is crucial to be aware that there are scammers operating within this sector who seek to take advantage of others. Educating yourself about the trucking industry before investing and being cautious about the individuals and businesses you choose to engage with or invest in is paramount.