Former Chief Financial Officer at Publicly Traded Transportation Company Charged with $245 Million

[TexasTowelie]

Former Chief Financial Officer at Publicly Traded Transportation Company Charged with $245 Million Securities and Accounting Fraud Scheme; Two Other Defendants Previously Indicted Charged with Additional Offenses


The former chief financial officer (CFO) of Roadrunner Transportation Systems Inc. (Roadrunner), a publicly traded transportation and trucking company formerly headquartered in Cudahy, Wisconsin, was charged in a superseding indictment unsealed today for his alleged role in a complex securities and accounting fraud scheme that resulted in a loss of more than $245 million in shareholder value. The superseding indictment also includes additional charges against two former Roadrunner finance executives for their roles in the scheme.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin, Regional Special Agent in Charge Andrea Kropf of the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and Acting Special Agent in Charge Michelle Sutphin of the FBI’s Milwaukee Field Office made the announcement.

Peter R. Armbruster, 60, of Milwaukee, Wisconsin, was charged in a superseding indictment filed in the Eastern District of Wisconsin with various offenses. Mark R. Wogsland, 53, and Bret S. Naggs, 52, both of Cedarburg, Wisconsin, and both of whom were charged in the initial indictment in this case filed in June 2018, were also charged in the superseding indictment with various offenses. All three defendants were charged with one count of conspiracy to make false statements to a public company’s accountants and to falsify a public company’s books, records and accounts; two counts of false entries in a public company’s books, records and accounts; one count of conspiracy to commit securities fraud and wire fraud; two counts of securities fraud; and two counts of wire fraud. Armbruster and Wogsland were charged with one additional count of securities fraud. Armbruster is also charged with one count of bank fraud; two counts of false statements to a public company’s accountants; one count of false entries in a public company’s books, records, and accounts; and two counts of wire fraud. Wogsland is also charged with two counts of false statements to a public company’s accountants and one count of insider trading. Naggs is also charged with one count of false entries in a public company’s books, records and accounts.

Armbruster made his initial appearance this afternoon before U.S. Magistrate Judge David E. Jones of the Eastern District of Wisconsin and was released on bond.

Read more: https://www.justice.gov/opa/pr/former-chief-financial-officer-publicly-traded-transportation-company-charged-245-million