Legal Woes Force Florida Carrier To File For Bankruptcy Protection

Florida-based DM World Transportation LLC of Longwood, Florida, has filed for Chapter 11 bankruptcy protection. This action comes just two weeks after a trailer leasing company filed a motion for final summary judgment in a breach of contract lawsuit against the carrier and its CEO for nearly $1.3 million. 

In its filing with the U.S. District Court for the Middle District of Florida, DM World lists assets ranging from $1 million to $10 million and liabilities as being between $10 million and $50 million. It lists up to 99 creditors in its bankruptcy filing. 

The carrier hauls general freight, fresh produce and mail for the United States Postal Service. DM World has previously hauled Amazon loads.

U.S. Bankruptcy Judge Lori V. Vaughan granted DM World's emergency motion on May 18 to access its cash to pay approximately $106,000 in wages and medical benefits for its employees and truck drivers.

A day before responses to the summary judgment motion in a breach of contract lawsuit filed against DM World and CEO Abduvosit Razikov were due on May 14, the court issued an automatic stay after the carrier's attorney, R. Scott Shuker of Shucker & Dorris PA, stated both were planning to file for bankruptcy protection.

Shuker did not return FreightWaves' email and telephone requests for comment.

In October 2019, Texas-based Premier Trailer Leasing Inc. filed a breach of contract lawsuit against DM World and Razikov, but the trailer leasing company claims it has been unable to serve the complaint to Razikov because he has been "absent from the U.S." since the suit was filed. 

Premier filed a motion on May 19 to reopen the case against Razikov because while the company has filed for bankruptcy protection, the former DM World CEO has not.

Razikov did not respond to FreightWaves' request for comment regarding the bankruptcy filing or the current status of the lawsuit.

On its website, DM World states it is a truckload carrier with a fleet of 650 trucks and 1,600 dry van trailers, but in an Instagram post dated September 2019, it lists that it has 950 trucks and 2,000 trailers.

However, those numbers are much higher than what the DM World filed with the Federal Motor Carrier Safety Administration in late January.

At the time of its bankruptcy filing, the carrier had 111 power units and 218 drivers, according to FMCSA's SAFER website. DM World's insurance is slated to be canceled on June 12. 

Over the past 24 months, DM World trucks have been inspected 298 times and 36 trucks were placed out of service, resulting in a 12.1% out-of-service rate, which is lower than the industry's national average of around 21%, according to FMCSA data. Its drivers were inspected 586 times and 13 were placed out of service in the same two-year period, resulting in a 2.2% out-of-service rate, which is below the national average of around 5.5%. The company has been involved in 16 injury crashes and 22 tow-aways over the past 24 months.

DM World has updated its business and mailing address to Burr Ridge, Illinois. An office manager of Regus US, a company that leases private offices and co-working spaces for businesses, verified the trucking company is a client and leases space at the Burr Ridge location, but provided no additional information.

A DM World employee, who answered the phone at its offices in Longwood on Wednesday, May 20, told FreightWaves he was unaware of the company's bankruptcy filing and didn't know the whereabouts of Razikov.

It's complicated

The company was founded by Razikov and Dilshod Mikhmanov in 2011, according to documents filed with the Florida Secretary of State's office. Initially, Razikov was listed as owning 80% and Mikhmanov 20% of DM World in its January 2012 filing, but two months later, an amended filing stated that Razikov owned 100% of the carrier.

Over the next eight years, the ownership arrangement and equity split between Razikov and Mikhmanov changed several times as new partners were added, then deleted from amended corporate filings with the Secretary of State. 

Two weeks prior to Premier filing its lawsuit against DM World and Razikov, his name was not listed in the company's annual report, listing only Mikhmanov as the owner.

According to Razikov's LinkedIn page, he resigned as chief executive of DM World in October and is now the president of Global Partners Investment Group, headquartered in Tashkent, Uzbekistan. 

However, he appears to still be playing an active role in several trucking companies he founded or co-founded in Florida since 2008.

Global Partners' website claims to have more than 400 employees with offices in Uzbekistan, China, Turkey, Russia and Los Angeles. A business search did not find an address for Global Partners in the U.S. However, the company posted a photo on Instagram of Razikov in a hard hat with the caption "We [are] glad we are a part of the construction projects in United States."

Abduvosit Razikov, former chief executive of Florida-based DM World, is now the president of Global Partners Investment, headquartered in Uzbekistan. Photo: Global Partners/Instagram

On its site, Global Partners says it specializes in event management, specialty marketing, transportation services, mining, information technologies, construction and hospitality.

Strong ties to Florida

On May 4, the Florida Secretary of State's office granted a request by a person named Abdujalil Razikov to change DM World's name to Global Partners Investment Group LLC, the same international company, headquartered in Uzbekistan, where Abduvosit Razikov now serves as president. The principal address is listed as the same for both Razikovs in Orlando, Florida.  

Razikov also founded DM World Logistics LLC in December 2012, according to filings with the Secretary of State's office in Florida. He dissolved the logistics company last month, citing "lack of business." 

SDM Transport LLC

Abduvosit Razikov and Mikhmanov partnered again to found SDM Transport LLC of Maitland, Florida, in January 2013. The company later named Abdujalil Razikov as 100% owner of the trucking company in its 2014 amended annual report. However, a recent filing listed Alex Jerez as the trucking company's manager, but neither Razikov was listed on the document.

SDM has 75 power units and 138 drivers, according to the FMCSA SAFER website. Over the past 24 months, SDM trucks have been inspected 153 times and 25 trucks were placed out of service, resulting in a 16.3% out-of-service rate, which is lower than the industry's national average, according to FMCSA data. Its drivers were inspected 288 times and 4 were placed out of service in the same two-year period, resulting in a 1.4% out-of-service rate, which is also below the national average. The company has been involved in three injury crashes and 11 tow-aways over the past 24 months.

Besides his involvement in trucking companies, Abduvosit Razikov first started an equipment rental and leasing company, All Star Trans Leasing Inc., headquartered in Orlando, Florida, in August 2008. All Star later named Dilrabo Obidova as the president of the company, but Razikov was recently added back as the company's vice president in its annual filing on April 14.

This is a developing story.