A pair of corporate officers at one of the United States’ biggest trucking companies were indicted last week on Federal charges relating to allegations that they were involved in a complex arrangement to defraud their company of over $60 million.
Per investigators, the two Indianapolis men, one of whom is 39 years old and the other is a year his senior, were aware that several of the company’s trucks were declining in value due to a general slowdown in the trucking industry. Armed with this knowledge since at least 2016, investigators say the duo were part of a group that developed a plan for hiding this fact and the tens of millions of dollars in losses caused by it from shareholders, banks, and investors.
In order to hide the losses, the group arranged for trades of older, lower-value trucks for newer used trucks. In the course of the trade the group allegedly inflated prices on company paperwork in order to mask the fact that the older trucks had significantly declined in value.
In addition, prosecutors say the duo structured the trade in a manner orchestrated to artificially improve corporate results. They say they used $25 million from a truck trade to pay down debt just as the quarter ended, making the firm’s overall debt picture look more attractive. However, they allegedly failed to disclose to their accountants that a secret deal to repay the money back to a truck dealer a few days after the quarter ended.
Both men now face one count each of conspiracy to commit wire fraud, bank fraud, and securities fraud; five counts of wire fraud; two counts of securities fraud; one count of conspiracy to make false statements to a public company’s accountants and to falsify books, records, and accounts of a public company; and one count of making false statements to a public company’s accountants. The elder defendant also faces two additional counts of making false statements to a public company’s accountants.
The Law Offices of Bjorn Brunvand have been representing people charged with capital murder, felony drug charges, drunk driving, government fraud, and white-collar crimes for over a quarter century. Contact our office today to discuss your Tampa Bay-area state or federal charges.