Monday, December 8, 2014

Former CEO of Trucking Concern Allegedly Defrauds Bank to the Tune of $15 Million

From Fraud News on 12/8/2014:

The former chief executive officer of a Tulsa trucking company has been indicted on fraud charges that relate to the closure of the company.

James Douglas Pielsticker, 46, faces 23 counts of various fraud charges – tax fraud, bank fraud, conspiracy to commit tax fraud, conspiracy to commit bank fraud, tax evasion and failure to account for and pay employee-withholding taxes – that suddenly shuttered Arrow Trucking Co.

According to the indictment, Pielsticker and a co-conspirator allegedly submitted fake invoices to Transportation Alliance Bank of Ogden, Utah with inflated amounts the bank “owed” to Arrow. The bank had bought the trucking company’s invoices.

The indictment states he allegedly did not pay personal income taxes for three years – 2007, 2008 and 2009 - and didn’t pay the payroll taxes of its employees for three quarters of the 2009 year.

According to prosecutors, these alleged action cost the bank over $15 million and Pielsticker owes over $9.5 million in back taxes.

The indictment states Pielsticker used the money to pay for his wedding, two automobiles and an array of other personal “needs”.

Court documents have no listing for a lawyer for Pielsticker.

Jonathan Leland Moore, former chief financial officer for Arrow, pled guilty to conspiracy Dec. 4 for his role in the case.

Arrow halted all operations and laid off hundreds of its employees three days before Christmas 2009, which left truck drivers stuck around the country with no way to get home or pay for gas. In January 2010, the company filed for bankruptcy… hours after the bank filed a lawsuit against Arrow.

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