Former Roadrunner Executive Convicted in Financial Case
[Stay on top of transportation news: Get TTNews in your inbox.]
A federal jury has convicted the former chief financial officer of Roadrunner Transportation Systems Inc. on four counts of violating federal securities laws for his role in a complex securities and accounting fraud.
Peter R. Armbruster, 62, of Milwaukee, was convicted on July 2 in the Eastern District of Wisconsin in relation to fraudulent activity that resulted in Roadrunner’s financial statements and Securities and Exchange Commission filings for the third quarter of 2016 being materially false and fraudulent, according to an Aug. 2 statement by the U.S. Department of Justice.
Armbruster was convicted of one count of securities fraud, one count of misleading the company’s auditors and two counts of falsifying Roadrunner’s books and records.
Armbruster
The Wisconsin jury also found former controllers for Roadrunner’s truck loading division, Mark Wogsland and Brett Naggs, not guilty on all charges, and found Armbruster not guilty of 11 of the 15 total charges.
Armbruster is scheduled to be sentenced Oct. 29 before U.S. District Judge Matthew F. Kennelly. He faces a maximum prison sentence of 25 years’ imprisonment for securities fraud, 20 years for misleading auditors and 20 years for each books and records violation.
The company has undergone a major, multiyear restructuring. Last year it completed the sale of three truckload businesses as part of its move toward becoming a stand-alone less-than-truckload company. In March, it accepted a $50 million equity private placement and made changes to its leadership team.
Want more news? Listen to today's daily briefing below or go here for more info:
