Former Logistics Agency CFO Will get 2 Years in Jail for Fraud Scheme

The previous chief monetary officer of Roadrunner Transportation Methods Inc. (Roadrunner), a publicly-traded trucking and logistics firm previously headquartered in Cudahy, Wisconsin, was sentenced Nov. 30 within the Jap District of Wisconsin to 24 months in jail for his position in a posh securities and accounting fraud scheme.

In keeping with court docket paperwork and proof produced at trial, Peter R. Armbruster, 62, of Milwaukee, participated in a complicated accounting fraud scheme that resulted in Roadrunner submitting materially false monetary statements with the SEC for the third quarter of 2016. Proof offered at trial confirmed that Armbruster inflated Roadrunner’s reported revenue by misrepresenting Roadrunner’s bills. His actions brought on the investing public to lose tens of tens of millions of {dollars} when Roadrunner finally introduced that it could have to restate its beforehand filed monetary statements, triggering a pointy drop within the firm’s inventory. On July 29, following an 11-day trial, a jury convicted Armbruster of 4 counts of violating federal securities legal guidelines, together with deceptive a public firm’s auditors, securities fraud, and conserving false books and data. 

“This sentence displays the intense hurt an govt attributable to intentionally deceptive shareholders, auditors, and most of the people in regards to the monetary well being of a publicly-traded firm,” stated Assistant Legal professional Basic Kenneth A. Well mannered Jr. of the Justice Division’s Felony Division. “Folks deserve higher from company administration. The Felony Division stays dedicated to combating white-collar crime, defending traders, and safeguarding the integrity of our markets from C-suite executives who commit accounting and securities fraud.”

“Peter Armbruster didn’t truthfully carry out his company duties, costing traders tens of tens of millions of {dollars} in losses,” stated Appearing Assistant Director Jay Greenberg of the FBI’s Felony Investigative Division. “Company fraud stays a prime precedence for the FBI, as stamping out criminal activity like this scheme is important to preserving confidence in our collective capacity to take a position for a brighter tomorrow. This sentencing reveals that the FBI and our legislation enforcement companions vigilantly defend American traders from company fraud whereas holding accountable those that undermine our lifestyle.” 

“This sentencing sends a robust message that those that commit transportation-related monetary fraud will likely be held accountable,” stated Particular Agent in Cost Andrea M. Kropf of the Division of Transportation Workplace of Inspector Basic, Midwestern Area. “Along with our legislation enforcement and prosecutorial companions, we’ll proceed to determine, examine, and pursue those that perpetrate advanced prison schemes for revenue.”

The FBI’s Milwaukee Division and the Division of Transportation’s Workplace of Inspector Basic are investigating the case.

Trial Attorneys Emily Scruggs and Kyle Hankey and Appearing Principal Assistant Chief Justin Weitz of the Felony Division’s Fraud Part prosecuted the case. Assistant U.S. Legal professional Caitlin R. Cottingham, previously of the Fraud Part, supplied beneficial help.