July 29, 2021
Former Chief Financial Officer Convicted of Securities Fraud and Other Charges
On July 29, 2021, a Federal jury in the U.S. District Court, Eastern District of Wisconsin, convicted Peter R. Armbruster, former chief financial officer of Roadrunner Transportation Systems Inc. (Roadrunner), of one count of securities fraud, one count of misleading Roadrunner’s auditors, and two counts of falsifying Roadrunner’s books and records.
In April 2019, Armbruster was indicted on conspiracy, securities fraud, wire fraud, and bank fraud, among other charges. Roadrunner is a publicly traded transportation and trucking company in Downers Grove, Illinois. The indictment alleged that between 2014 and 2017, Armbruster and co-conspirators schemed to mislead Roadrunner’s shareholders, independent auditors, regulators, and the investing public about the company’s true financial condition. Armbruster and co-conspirators identified at least $7 million in overstated accounts on the balance sheet of one of Roadrunner’s largest operating companies, Roadrunner Intermodal Services Inc. Instead of addressing the problem, they left most of the misstated accounts on the books to fraudulently boost the company’s financial profile.
DOT-OIG conducted this investigation with the Federal Bureau of Investigation with assistance from the Securities and Exchange Commission.