More charges filed against Roadrunner executives

By LAURIE ARENDT

April 6, 2019

Peter Armbruster, the former chief financial officer of Cudahy-based Roadrunner Transportation Systems Inc., was charged in a superseding indictment unsealed in Washington, D.C., on Tuesday for his alleged role in a complex securities and accounting fraud scheme that resulted in a loss of more than $245 million in shareholder value.

Additional charges were filed against former Roadrunner financial executives Mark Wogsland, 53, and Bret Naggs, 52, both of Cedarburg. Wogsland and Naggs were also both charged with Armbruster in the initial case indictment filed in June 2018.

All three defendants were charged 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; two counts of false entries in a public company’s books, records and accounts; one count of conspiracy to commit securities fraud and wire fraud; two counts of securities fraud; and two counts of wire fraud.

Armbruster and Wogsland were charged with one additional count of securities fraud. Armbruster is also charged with one count of bank fraud; two counts of false statements to a public company’s accountants; one count of false entries in a public company’s books, records, and accounts; and two counts of wire fraud.

Wogsland is also charged with two counts of false statements to a public company’s accountants and one count of insider trading. Naggs is also charged with one count of false entries in a public company’s books, records and accounts.

“According to the charges, former CFO Peter Armbruster, and former executives Mark Wogsland and Bret Naggs, used sham accounting entries, misstated accounts and other means to conceal millions of dollars of bad debts and other financial problems from Roadrunner’s shareholders, regulators, lenders, and the investing public,” said Assistant Attorney General Benczkowski in a Department of Justice press release. “This pattern of deception allegedly caused investors to lose hundreds of millions of dollars.”

According to the DOJ findings, Roadrunner shareholders lost more than $240 million due to the scheme.

Wogsland and Naggs are both former controllers for Roadrunner’s Truckload operating segment, and Wogsland also served as director of accounting for Roadrunner’s Truckload operating segment. The superseding indictment alleges that between 2013 and 2017, Armbruster, Wogsland, Naggs and their co-conspirators carried out a complex scheme to mislead Roadrunner’s shareholders, independent auditors, lenders, regulators and the investing public about Roadrunner’s financial condition.