Previous Chief Economical Officer of Publicly Traded Organization Convicted of Securities and Accounting Fraud | OPA
A federal jury in the Eastern District of Wisconsin on Thursday convicted the former chief money officer of Roadrunner Transportation Programs Inc. (Roadrunner), a publicly traded trucking and logistics company previously headquartered in Cudahy, Wisconsin, on 4 counts of violating federal securities laws for his purpose in a complex securities and accounting fraud scheme.
In accordance to court docket files and proof offered at demo, Peter R. Armbruster, 62, of Milwaukee, the previous chief monetary officer (CFO) of Roadrunner, whose shares ended up traded on the New York Stock Exchange working with the ticker symbol #RRTS, committed securities fraud, falsified Roadrunner’s textbooks and records, and misled Roadrunner’s auditors. Armbruster was convicted in relation to a complex accounting fraud scheme that resulted in Roadrunner’s economic statements and Securities and Trade Commission filings for the 3rd quarter of 2016 remaining materially false and fraudulent.
Armbruster was convicted of just one depend of securities fraud, just one rely of misleading Roadrunner’s auditors, and two counts of falsifying Roadrunner’s guides and documents. He is scheduled to be sentenced on Oct. 29 before U.S. District Decide Matthew F. Kennelly. He faces a highest prison sentence of 25 years’ imprisonment for securities fraud, 20 decades imprisonment for misleading auditors, and 20 years’ imprisonment for just about every guides and documents violation. Judge Kennelly will identify any sentence soon after contemplating the U.S. Sentencing Tips and other statutory aspects.
Assistant Lawyer Common Kenneth A. Polite Jr. of the Justice Department’s Felony Division, Particular Agent in Charge Robert E. Hughes of the FBI’s Milwaukee Area Office and Special Agent in Demand Andrea Kropf of the Section of Transportation – Workplace of Inspector General’s Chicago Subject Office made the announcement.
The FBI’s Milwaukee Industry Business and the Office of Transportation’s Business office of Inspector General are investigating the situation.
Trial Lawyers Emily Scruggs and Kyle Hankey and Acting Principal Assistant Main Justin Weitz of the Legal Division’s Fraud Area prosecuted the case. Assistant U.S. Attorney Caitlin R. Cottingham, previously of the Legal Division’s Fraud Area, supplied useful support.
The Fraud Part is the nation’s top prosecuting authority for complex white-collar criminal situations, such as accounting and securities fraud conditions involving community businesses.
