Graphic: Two former Roadrunner Transportation Systems executives accused of running a massive accounting and securities fraud scheme that cost shareholders over $245 million.
Two former executives at Roadrunner Transportation Systems Inc. have been charged with a complex accounting and securities fraud scheme that resulted in a loss of more than $245 million in shareholder value.
Mark R. Wogsland, 53, and Bret S. Naggs, 52, both of Cedarburg, Wisconsin, were charged in an indictment filed in the Eastern District of Wisconsin with one count of conspiracy to make false statements to a public company’s accountants and to falsify a public company’s books, records and accounts; one count of conspiracy to commit securities fraud and wire fraud; three counts of securities fraud; and four counts of wire fraud.
The indictment alleges that between 2014 and 2017, Naggs, Wogsland and their co-conspirators carried out a complex scheme to mislead Roadrunner’s shareholders, independent auditors, regulators and the investing public about Roadrunner’s true financial condition.
According to the allegations, the scheme began in 2014 when Naggs, Wogsland and their co-conspirators identified at least $7 million in overstated accounts on the balance sheet of one of Roadrunner’s operating segments.
Acting Assistant Attorney General John P. Cronan said, “According to the allegations in the indictment, Mark Wogsland and Bret Naggs engaged in a massive securities and accounting fraud scheme that misled shareholders, regulators, and the investing public, and ultimately caused a loss of more than $245 million in shareholder value.”
U.S. Attorney Matthew D. Krueger added, “The stability our financial markets depends upon public companies issuing accurate financial statements.” The FBI and the U.S. Department of Transportation Office of Inspector General were praised for their efforts in investigating the case.
The indictment marks a major blow to the transportation company, which was formerly headquartered in Cudahy, Wisconsin, and is now headquartered in Downers Grove, Illinois.
The case is a stark reminder of the importance of corporate integrity and the severe consequences of engaging in fraudulent practices.
The indictment is a significant step in holding those responsible accountable for their actions.
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Key Facts
- State: Wisconsin
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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