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Roadrunner executives charged with accounting fraud

Jaclyn Jaeger | April 8, 2019

The Securities and Exchange Commission and the Department of Justice brought civil and criminal charges against three former executives of transportation company Roadrunner Transportation Systems for their alleged role in a complex securities and accounting fraud scheme that resulted in a loss of more than $245 million in shareholder value.

In charges brought April 3, the SEC alleges that Peter Armbruster, the former CFO of Roadrunner, hid incurred expenses by improperly deferring and spreading them across multiple quarters to minimize their impact on Roadrunner’s net earnings. Armbruster then allegedly manipulated certain reductions to liabilities, creating an income “cushion” that could be accessed in future quarters to offset expenses.

The SEC further alleges that Armbruster, as well as Bret Naggs and Mark Wogsland, former...

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