Trucking veterans will remember when the now infamous Arrow Trucking, Inc. shocked everyone by closing its doors and stranding hundreds of drivers three days before Christmas in 2009. Now the CEO of Arrow, James Douglas Pielsticker, has been arrested and charged with multiple counts of fraud related to his company’s spectacular demise. If he is found guilty on even a small portion of the charges, he could very easily be spending the rest of his life behind bars.
Pielsticker was arrested in Dallas and is being held for the FBI after he was indicted by a grand jury on 23 separate counts which included one count of conspiring to commit bank fraud, 15 counts of bank fraud, one count of conspiring to defraud the Internal Revenue Service, three counts of tax evasion, and three counts of failing to account for and pay over payroll taxes.
To understand where these charges come from, we have to understand the circumstances that lead to Arrow’s bankruptcy.
Everyone believed that Arrow Trucking had been doing well right up until their collapse. In fact, just a year before, they had signed a deal to replace their 1,400 truck fleet with newer models over the next five years; they were operating in the U.S., Canada, and Mexico; and they had over 1,700 employees.
Unbeknownst to anyone outside of a few higher ups however, their appearance of success was the result of taking loan after loan until they were up to their eyeballs in debt. So when their primary lender, Transportation Alliance Bank, refused to give them any more credit, the executives saw the end coming, and closed the doors that very same day. Over 1,700 people lost their jobs and hundreds of drivers were stranded all across the continent with no way to get home after their fuel cards stopped working without warning.
When they officially filed for bankruptcy in January 2010, they had $8.55 million in assets $98.97 million in liabilities. Arrow was only able to continue operating for as long as it had because it defrauded their lenders by providing them with false financial documents and cheating on their taxes.
Up until this point, Pielsticker had been the target of multiple lawsuits, but now, thanks to the grand jury and a joint FBI/IRS-CI investigation, he has been charged with multiple federal crimes. If he is convicted, he can serve up to 30 years in prison and pay fines of up to $1,000,000 for each of the 16 counts related to bank fraud; serve up to 5 years in prison and pay fines up to $250,000 for each of the 7 counts related to tax fraud; and he’ll have to pay back the $15,000,841.32 he personally earned as a result of the numerous frauds he allegedly took part in.
Arrow Trucking’s former Chief Financial Officer pled guilty to charges related to the scheme on December 4th.
Next Story: Restart Rules May Be Suspended By Gov’t Spending Bill
Source: standard, tulsaworld, tulsaworld, fox23, washingtontimes, krmg, ttnews
Image Source: lexisnexus
Remembering he caused his drivers, employees and creditors unlimited grief , it couldn’t have happened to a better man.
Karma is a you know what . It’s small justice for all his faithful employees he literally screwed over and could have cared less. Prison is a excellent place for him and not a Spa prison a bona fide hell hole prison.
This article needs to b sent to marten transport upper management, maybe it will slow down that bunches swill
I remember working there six months before they close, I only lasted a month tbere because of the way they operated. I did my orientation training for a week and had to wait another week for a truck to come available, so that sent me bad vibes about that companybefore I got my first dispatch, but I was in between jobs so I held in there. But once I got assigned a truck,I only ran maybe 1600 mile the next two weeks then I had to quit. I ccouldn’t make enough money there to stay and I was glad to of had left considering the way they left their drivers hanging afterwards. So I think he’s gonna get what he deserves…
Me too, 6-09 went through training with the worst trainer in the world. My largest check was $609.00. I was done by 9-09.
It seems whenever the next generation takes over a successful operation they manage to screw it up! They didn’t have to come up the hard way like their father’s did!
Yup I totally agree ! I worked for arrow for 3 years from 95-98 when the father ran the company and all was great ! Seems the company got run to the ground by the children after taking over , it’s a shame the kids turned their fathers life long work to crap !
I worked for them for 6 months back in 05. It was running kind of weird then. A friend went to orientation back in 08. There were drivers sitting there at the terminal for two weeks with nothing to do. He got on the first bus back home
What goes around comes around,let this be a lesson to the next person who tries to default the system.Truckdrivers aren’t as stupid as they think we are.good riddens to the crook maybe he will get a nice cell mate in the big hose maybe that person will be called (Buba) HAHA.
well let us see if he serves any hard time.
I remember reading the docket back in 09. It was a laundry list of federal charges including RICO charges, which is typically the charge used against the mafia. Also keep in mind it was tax evasion that got Al Capone too.
I’m sure a lot of drivers who worked there or lived in the area are glad to see the guy finally get caught. I know I am.
I never forgot that night day not even working for them, I fueled a Arrow drivers truck in Oklahoma City for him so he could get home to his family and empty his truck out before turning it in. This is what CF did to their drivers too. The driver gives their life to make a living for family and company. Respect for driver seems to be forgotten with greed. More than the CEO should go to Prison and restitution repaid to the drivers.
Instead of warehousing this moron for who knows how many years, he should be forced to work until dead or debts paid off. Indentured Servitude is still allowed for in the Constitition. Why bill the taxpayers $75k or more a year to warehouse this guy in a cell? Forced labor is a more fitting punishment with virtually all he makes being returned to those that took it in the shorts during this fiasco. And line up the other executives and put them to work also.
Need to make this a Federal Law :: Every and All companies that provide interstate transport services, needs to be AUDITED by an IRS team at least once a year. That will stop their “game” before Drivers and Creditors suffer loses.
I bought my first truck from Arrow in troy, IL back in ’99. It was on the side off the road or in the shop 1 day in 7 for the 1 1/2 years I owned it. It was terrible. I went into so much debt over it. Finally, the engine died. My opinion of Arrow since that experience was that they were a bunch of liars and cheats. I was offered no recourse by them for the POS truck they sold me. I bought a brand new Volvo from a Volvo dealer after that in 2000 and I used it until 2010. Glad to see some justice coming back to Arrow for their crimes.
I think you’re confusing Arrow Truck Sales with Arrow Trucking. No connection between the two other than both have Arrow in their names.
You bought a used truck that was dying on you from a used truck dealer and you’re blaming the dealership for truck’s defects? Classic.
Being on a different Continent I know nothing about the “In’s and Out’s” of this Company and it’s Management but no doubt others were aware of the “Going’s on” which in my Books makes them equally Guilty…but don’t hold your Breath…no doubt his Lawyers will Plea Bargain and apart from a slap on the Wrist as was the case for Senior Bankers here in Ireland who almost brought the Country to it’s Knees with Fraudulent Dealings they walked scott- free with 240 Hrs Community work…
I hope for all those Employees I’m proven wrong but nothing surprises me any more in this Corrupt World…
What about the most afected people on this , the workers they gonna pay something to them for their lost. ??????
What exactly did the workers lose? Their jobs and last paycheck? You sound like the jobs were somehow their “rights”.
It was way more than their last paycheck. Checks bounced for 3 weeks or more before that. Payments taken out for child support where pocketed by the company, leaving drivers in serious trouble since the state did not care. Lease payments made by drivers were also pocketed, leaving those that were buying their trucks far behind on payments. Several drivers had actually paid their trucks off months before, but since Arrow used the trucks as collateral on loans before the payoff date and then never made payments, they were all repossessed. The list goes on from there.
This is exactly what Baldwin in Amarillo, Texas did.
Financed trucks for drivers, that got repoed, kept child support withholdings, etc.
Maybe he took notes from Arrow and tried to follow their lead.
He finally crashed his company too, but just heard that he has somehow
got financing and started up another company and is going again.
I feel for all the hard working, innocent people that are effected by these people’s actions.
I agree with the idea of making them do hard labor for their restitution, not just hangout.
Goes way beyond losing job and last pay check.
Taxes withheld from employees but not paid for years.
Tax fraud… employee looses.
Your social security is reduced by what? $100 per month
because you didn’t work per IRS. No recourse.
Screwed for 20 additional years.
It’s only when they mess with the IRS that something is done. They cheat on the drivers/employees payments, they low the rates, they steal from the poor as much as they like and nobody does anything. But, when the IRS sees that it ‘s also being screwed, then they take these CEOs to jail.
Should truckers be more united and denounce these companies and refuse to work for them, then something good can happen to the whole industry.
I agree with your Sentiments George but Nature being what it is you will always find someone who will continue to Drive for these Companies irrespective of the Conditions/Pay…and as long as the IRS continue to get their few Dollars they are not going to undertake a long and arduous Investigation unless it becomes Headline News…and even then the Drivers do not merit any mention……Life Sucks…
It’s about time this turd was arrested! Why did it take so long?
I remember rumors that some of the Arrow drivers drove their trucks to Mexico and sold them for the cash to make it home and feed their families until they had another job. Part of me hopes that was true and that Arrow had to eat the loss.
This delay in justice makes me believe the owner of Prime Inc will never be investigated for racketeering, as he so richly deserves.
I would like more information. From the information in this story, it sounds like the average American. Take a loan, then another, then another; when lenders stop lending, spending habits don’t change, and bankruptcy soon follows. Sometimes payday loans happen right before the fall, but if you’re using payday loans, bankruptcy is inevitable.
Just like drugs, people think they can control the loans. About 1 in every four homes in America are either behind on the mortgage or now in default. Credit is the problem, criminal in this case? We’ll see as the court proceedings play out. But this should be taken as a lesson for the rest of us, credit is like Russian roulette, yes it’s possible to “win” the game, but it also leaves victims in it’s wake. The best solution is to grow slowly and run on cash. Arrow would not have grown as fast, but just look at Heartland Express, a debt free company. It’s possible!
As my Grandfather told me long ago; “if you can’t pay cash, you can’t afford it.” The last several vehicles and trailers, I’ve bought both privately and in my business were paid for in cash. The way you or your business can get to that point is as Dave Ramsey says; “You have to live like nobody else, so you can live like nobody else.” And as Kevin Rutherford says; “You have to do the hard work.” It’s possible as many millions of us are living and operating this way.
United we are the most powerful people in America. As separated as we are now we are powerless. These occurrences will continue until we learn to put differences aside and come together.
Since James Pielsticker is a very uncommon name, I wonder if anyone knows if this is the same guy who owned Cruz Transportation. They screwed me out of $3.500 on a load they brokered to me. Just curious.
Yes it is there is a thread about the new company for what I heard his wife started Cruz transportstion
I too helped one of the drivers stranded in Atlanta, turned out he was a scam artest, pretending to be with Arrow. Never The less put these so called CEO,CFO, and especially the one that did all the insurance fraud, in a very small room with the drivers they deceived. Then and only then will they feel justice.
Bless all on the road.
Amen!
There is justice out here.
Wow brings back memories drivers were taking trailers out of the yard like they were m and ms never to return I still see some of those trailers on the road to this day it was like a free for all !!!!
Is the name still in use ? I think I hear on sat radio used trucks for sale be Arrow trucking or trucks . Or is it just a dealer with same name ?
Different company. Arrow Truck Sales is the name of a truck dealership, Arrow Trucking is the trucking company that went bankrupt and had their former CEO arrested recently (the topic of this article). I remember a few years ago when we published the news about the Arrow Trucking bankruptcy, the Arrow Truck Sales folks were real active in the comments section here and elsewhere, reminding everyone that despite having Arrow in both their names the companies are unrelated.
It seems to me that the original owner died in a hunting ‘accident’ and then his wife took over running the company. I never had any personal dealings with Arrow but I found many of their drivers to be good people. I remember passing an Arrow truck that had a saddle sitting on the seat. The driver said he would ride in rodeos all over the country when he had the chance. Wonder whatever became of him?
I can’t understand why anyone that was paying attention and had some sense would be surprised that Arrow went under. I was very surprised that they lasted as long as they did. Why , well they had cut rates since they started, they would hire a warm body and still try to haul spec. freight, and for at least a year or so before the end I noticed they were really letting their equip. get shabby. So I began to quiz Arrow drivers and I would hear about even little things like a light being out being put off till the next trip. No wash jobs, payroll screw ups, things like that. The last Arrow driver I talked to I told him my advise would be to find a new job quick, that was about 9 mos. before the end. So like I said I was very surprised that I was that wrong. I thought the end was a lot closer. My advantage is I’ve been trucking since 1968 O.O. since 1974 so I’ve seen thousands go under and can read the signs. I don’t have a habit of hanging out with a loser company, trucking or shipper. Read the signs and get gone before they can take you.
Is this the orange trucks?That was originally started by jack Charles?they haul wood chips in bc and garbage I believe also have an ore run?
No. Arrow Trucking was green & cream, with a green horizontal stripe on the cab.
The orange trucks for the most part are Schnieder.
The type of activity Pielsticker was involved in (I refer mostly to the screwing of the drivers) is not uncommon.
I know of a company that took money from their owner operators in order to pay for a raise for the company drivers. Company drivers get a raise – O/O gets the shaft.
What amazes me, no matter what the company, is the upper management and/or owners think the drivers are so stupid that nobody will notice.
I make it my mission to prove them wrong when I see, through my own forensic accounting, that they’re affecting my paycheck.
And believe me, they don’t like it very much, because it ALWAYS costs them money.
Nah nah,,
Nana nah nah,
Hey hey hey,
Goodbye!
(Don’t let the cell door slam you in the backside on your way in, that’s your new roommate’s job!)