Home > Boards > US OTC > Automotive and Transportation > Roadrunner Transportation Systems Inc. (RRTS)

Three Ex-Roadrunner Transportation Executives Charged With Accounting Fraud (4/03/19)

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Enterprising Investor Member Profile
Member Level 
Followed By 211
Posts 11,008
Boards Moderated 10
Alias Born 04/05/09
160x600 placeholder
Initial Statement of Beneficial Ownership (3) Edgar (US Regulatory) - 4/23/2020 5:48:13 PM
Initial Statement of Beneficial Ownership (3) Edgar (US Regulatory) - 4/20/2020 6:51:08 PM
Termination of Registration of a Class of Security Under Section 12(b) (15-12b) Edgar (US Regulatory) - 4/17/2020 4:07:21 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 4/15/2020 4:21:47 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 4/9/2020 7:07:21 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 4/9/2020 6:52:24 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 4/9/2020 6:49:44 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 4/9/2020 6:47:33 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 4/9/2020 6:42:38 PM
Notification Filed by a National Securities Exchange to Report the Removal From Listing and Registration of Matured , Redeeme... Edgar (US Regulatory) - 4/6/2020 4:08:46 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 4/1/2020 4:20:27 PM
Roadrunner Announces Sale of Stagecoach Cartage and Distribution Business Wire - 4/1/2020 4:15:00 PM
Annual Report (10-k) Edgar (US Regulatory) - 3/30/2020 4:42:25 PM
Post-effective Amendment to an S-8 Filing (s-8 Pos) Edgar (US Regulatory) - 3/27/2020 4:33:59 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 3/26/2020 4:17:24 PM
Roadrunner Transportation Systems Reports 2019 Results Business Wire - 3/26/2020 4:15:00 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 3/3/2020 4:21:05 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 3/2/2020 4:19:18 PM
Roadrunner Closes on the Sale of its Prime Distribution Services Business to C.H. Robinson Business Wire - 3/2/2020 4:15:00 PM
Roadrunner Freight Automates Bill of Lading for Improved Customer Experience PR Newswire (US) - 2/26/2020 7:03:00 AM
Current Report Filing (8-k) Edgar (US Regulatory) - 1/28/2020 4:18:38 PM
Roadrunner Announces Agreement to Sell its Prime Distribution Services Business to C.H. Robinson Business Wire - 1/28/2020 4:15:00 PM
Roadrunner Freight Reduces Transit Time in 322 Lanes PR Newswire (US) - 1/27/2020 7:03:00 AM
Enterprising Investor Member Level  Friday, 04/05/19 01:04:21 PM
Re: None
Post # of 143 
Three Ex-Roadrunner Transportation Executives Charged With Accounting Fraud (4/03/19)

The former finance chief of Roadrunner Transportation Systems Inc. (RRTS) was arrested Wednesday and charged in an alleged accounting-fraud scheme that led the trucking company to restate several years of financial reports, according to court documents.

Peter Armbruster, who served as the company's CFO for about seven years through April 2017, was charged in criminal and civil complaints along with Mark Wogsland and Bret Naggs, former controllers for the company's truckload segment.

Messrs. Wogsland and Naggs were initially charged by the Justice Department last year.

On Wednesday -- a day after the Justice Department unsealed the amended charges adding Mr. Armbruster to the criminal case -- the Securities and Exchange Commission filed a civil complaint in Milwaukee federal court accusing the three former executives of manipulating the company's financial results to meet earnings targets and projections.

A lawyer representing Mr. Armbruster in the criminal case said his client was looking forward to proving his innocence.

Messrs. Wogsland and Naggs couldn't be immediately reached for comment through their lawyers. A lawyer representing Mr. Armbruster in the civil case couldn't be immediately reached.

The government alleges the scheme happened over a roughly four-year period through at least January 2017, as a flurry of acquisitions started to weigh on Roadrunner's financial results.

That, along with mounting expenses, threatened the company's ability to meet analysts' projections and put it in danger of breaching terms of its debt, according to the complaint.

"Rather than come clean and offer a true accounting of Roadrunner's financial condition," the regulator said the former executives manipulated earnings results.

The authorities said in the complaints that the three manipulated certain acquisition-related numbers to effectively create a "cushion" or "cookie jar" that they could later tap into, clouding the company's true financial picture.

On Jan. 30, 2017, Roadrunner said it would restate financial results, causing the company's stock to lose nearly one-third of its value in one day, according to FactSet data.

Roadrunner's stock traded as high as $30.84 in 2013 and was trading at $11 levels in late January 2017 when the company announced an investigation. It closed Wednesday at 43 cents.

In a bid to regain compliance with stock-listing standards, the company plans to complete a 1-for-25 reverse stock split.

The company is now controlled by Elliott Management Corp.

"Someone said it takes 30 years to be an instant success" - Gabriel Barbier-Mueller, CEO of Harwood International
Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences