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Federal prosecutor says Indianapolis trucking company misled investors

Celadon will pay millions in restitution
Posted at 1:08 PM, Apr 25, 2019

INDIANAPOLIS — A big Indianapolis-based trucking company must pay $42.2 million dollars in restitution to investors.

According to Assistant Attorney General Brian Benczkowski of the U.S. Justice Department, Celadon Group knowingly filed false and misleading statements to investors and falsified books, records and accounts.

"Celadon executives misled the investing public for a simple reason: profit," said Benczkowski. "Securities fraud harms all investors — from the most sophisticated to those everyday Americans saving for retirement."

The company faced a federal securities fraud charge, but under settlement terms announced Thursday, will make restitution to shareholders who were victimized, and will be monitored by federal investigators.

According to Benczkowski, Celadon falsely reported inflated profits and assets for its subsidiary, Quality Companies when Quality began to struggle in 2016.

"The message here is clear, those who commit financial fraud will be held accountable. Investors should expect nothing less than complete candor and truth from companies and their executives," said Special Agent in Charge Grant Mendenhall of the FBI.

Under settlement terms, Celadon will not be prosecuted for securities fraud if it demonstrates what's called "good conduct" over the next five years.