Celadon, an Indianapolis-based national trucking firm will pay more than $42M in restitution for itssecurities fraud conviction. In addition, a former president of a Celadon subsidiary has reached a plea agreement. The executive faced charges of conspiracy to commit securities fraud, making false statements and falsifying records.
The executive’s plea agreement does not include a sentence. Instead, the federal judge hearing the case will determine the sentence, which could be as long as 5 years.
The trouble began when the company tried to aggressively grow its fleet from 750 trucks to more than 11,000. Many of the company’s trucks had significant mechanical problems, so drivers did not want to lease the trucks.
According to prosecutors, the company hid massive losses in its leasing subsidiary by altering business records and leasing documents. The company now says that it overstated its 2013-2016 earnings by $250M. As a result, the company also faces civil charges by the SEC of accounting fraud.
Prior to the settlement, the company replaced most of its executive team, including its CEO and Chief Financial Officer. The company has also been selling off assets and subsidiaries, and canceled plans to build a new headquarters. The company’s stock is worth just 8% of its value in 2015.
Federal securities fraud attorney
When you face criminal charges related to investment fraud, hire an experienced securities fraud attorney like Robert Helfend. Mr. Helfend has more than 30 years of experience in criminal defense. He takes federal cases in any circuit in the United States.
Investment fraud convictions can have a serious and long-lasting impact on your life. Often, they produce not only criminal actions against you but also civil cases. This can limit your ability to work in your field of expertise, and can subject you to high fines and restitution.
Don’t rely on an inexperienced attorney to defend you. Instead, contact Robert Helfend or call toll-free at (800) 834-6434, (310) 456-3317, (818) 591-2809 or (805) 273-5611 for an immediate consultation on your Los Angeles County securities fraud case.
Photo Credit: Truck PR, via Flickr.com