INDIANAPOLIS — Federal fraud charges have been dropped against two former senior management officials at an Indianapolis-based trucking company that filed for bankruptcy in 2019 just a week after the indictments were filed.
The Department of Justice moved to dismiss the indictment against former Celadon Trucking executives William E. Meek and Bobby L. Peavler with prejudice, meaning the charges cannot be refiled.
Meek was the company's president and chief operating officer and Peavler was once the chief financial officer.
The order, signed by a U.S. Magistrate Judge on Sept. 2, mandates the parties to the case file a joint status report by Nov. 2, "stating specifically how they propose that this case should proceed going forward, including imposition of Case Management Plan deadlines and settlement."
The indictment was filed in the U.S. District Court of the Southern District of Indiana and was first unsealed in early December 2019.
The scheme cost shareholders millions of dollars and sent stock prices tumbling.
Days later, Celadon issued a news release saying it was filing for Chapter 11 bankruptcy and "winding down operations".
Earlier that year, Celadon Group Inc. agreed to pay $42.2 million in restitution to settle securities fraud charges stemming from falsely-reported inflated profits and assets to investors.
Meek and Peavler faced charges including conspiracy to commit wire, bank and security fraud.