‘Misplaced trust’ let to $2 million theft, AMX official says

An executive with a local trucking company said misplaced trust was the main reason someone was able to bilk the company for more than $2 million over a span of 10 years.

Jimmy Franklin, chief financial officer for American Motor Express of Ashford, said the company’s system for billing businesses for work performed was based on trust. That’s how two men charged with theft in the case were able to place their initials on a fake invoice and avoid questions about the fictitious tire company they were charged with creating, he said.

The trial of former AMX employee Matt Ludlam continued Tuesday morning, with Franklin taking questions from defense attorney Joey Sheffield. Matt Ludlam is charged with seven counts of theft of property for allegedly continuing a theft scheme started by his brother, Billy, that allowed the Ludlams to create invoices for work done to the company’s trucks by a fictitious tire company they conjured.

Billy Ludlam is charged with 24 counts of theft. Prosecutors believe he pocketed more than $2 million from AMX over a span of almost 10 years by creating a fake tire company that provided service to trucks on the road. They say he also created a bank account with his name and National Tire Company on the top, and paid his brother to continue the scheme when he left.

Franklin said the compartmentalized nature of the company forced coworkers to trust Billy and Matt Ludlam, who were in charge of processing the paperwork for work done to company trucks on the road.

Franklin said they have now changed the way invoices are processed.

Check back at dothaneagle.com for more updates from Matt Ludlam’s theft trial.