Almost 6 years after abruptly closing the doors on his company just days before Christmas, former CEO of Arrow Trucking, Doug Pielsticker, has been sentenced to serve 7 and a half years in jail and pay $22 million in restitution and fines.
After needing a delay to take more time to decide his sentence, a federal judge finally announced Pielsticker would spend 90 months in jail. Initially, Pielsticker had been charged with 23 counts in a federal conspiracy case, but he was able to reduce those down to just one count of conspiracy and one count of tax fraud in exchange for pleading guilty.
The maximum sentence could have been 10 years in prison, but before sentencing Pielsticker’s lawyer tried to get his client away without any jail time at all. He asked the judge to “impose the shortest period of incarceration, if any, warranted under the circumstances,” claiming that Pielsticker suffered from a “unique heart condition.”
For his own part, Pielsticker admitted that he had made some bad decisions, but still places the blame for his company’s demise everywhere but on himself. According to him, it wasn’t the luxury sports cars or the lavish wedding paid for with company money that brought down the once-successful carrier. Nor was it the tax fraud, bank fraud, or stealing from employee paychecks. Instead, Pielsticker still blames a weak economy for the sudden closure that left hundreds of drivers stranded across the country and over 1,700 employees without a job.
In addition to his jail time, Pielsticker will have to pay $1 million in fines and $21 million in restitution to the IRS and Transportation Alliance Bank, the bank who he defrauded of millions by submitting fake invoices to artificially inflate his company’s earnings.
“Mr. Pielsticker abdicated his responsibility as the CEO of Arrow Trucking, and concocted a fraudulent scheme to mask his illegal activities,” said Scott L. Cruse, a special agent with the FBI who worked on the case. “In doing so Pielsticker chose his own personal extravagances over the needs of his employees, which ultimately led to Arrow Trucking closing its doors during the Christmas holidays, a time when all of us count on our paychecks the most.”
Source: fox23, joc, newson6, truckinginfo, newson6, washingtontimes
37 comments. Add a comment.
Good for that judge! It’s about time scumbags like this spend some serious time behind bars. Thankfully, it’s federal, so he won’t be getting out until he serves at least 90% of his sentence. Gotta love the “heart condition claim too. He does have a heart condition…he doesn’t have one.
Mark, federal inmates serve 85% of their time, and that’s not including reductions for attending programs like RDAP. He could reasonably reduce his sentence by another year of he attends RDAP. Also, he will be eligible for furlows and supervised release to a halfway house much sooner than his 85% release date.
James Pursell says
Well, when he finally gets out of jail…….C.R.England will be hiring!!!!
Heart condition was probably caused by all the coke he was doing.
Jack Hennessee says
Notice that only $1,000,000 of the $22,000,000 is for restitution, $21 million to the gov.and bank.Looks like those he screwed don’t get much. What’s the chances he repays any of this, somewhere between Slim and None!
ether bawny says
Well bank and IRS will be vying for liens on his property. Im sure he hid a few things but if FBI was investigating im sure they took an inventory of his property long before the sentencing so he will likely loose most if not all of the excessive goodies..like that sports car he nabbed just before closing the company. Lots of drivers were damaged in this and both the IRS and the Banks should have second liens not first. The 22 million should go to the drivers that were stuck without a check and parked without fuel money to get home. Him skimming paychecks gives the drivers i believe first rights to his property.
I agree that the employees should have gotten restitution before the government & the bank. And it’s the $1,000,000 that’s going to fines, not restitution; the other $21,000,000 goes for restitution to the IRS & the Bank he defrauded. Apparently nobody really cares about the employees, including the drivers who were stranded around the country. Hopefully they will file a civil suit in order to collect some damages.
By the way, the definition of the word unique is, “only one of its kind”, so unless there really isn’t anyone else on the planet with the same heart condition, it’s not unique. I’m sure that they’ll give him wonderful medical care in the Federal Penitentiary. 😉
Oh no he will repay it, $5.00 a month.
You’re backward. $1 million in fines and $22 million in restitution + 90 months in jail.
I get it… you want to keep the villain thing going.
$21 million in restitution to the IRS and Transportation Alliance Bank…
I get it… you want to keep the not gonna read the whole sentence thing going
David Dunne says
Here in Ireland we say…”Bob Hope and No Hope” to any of that money being repaid…and did you think for one moment the Employees would come before the Banks / Government when it comes to getting anything back…you’ve a better chance of getting out of Hell…Heart condition my A++e…Scrooge was a Charity case in comparison…
It says 1 million in fines and 21 million restitution to the IRS and the bank.
I think that’s for the criminal case. The drivers will have to file a class action civil case as well.
Yeah so that whole ”
“It’s his business and he can choose to do whatever he wants with it theory”, flys right out the window! LOL Also he is just as much a predator as ” big banks”, however they got away with it,ZERO jail time, that poor shmuck doesn’t have a chance!
John Kissel says
People like him give crooks a bad name. When ever they have to pay up and go away for a while somehow a special medical condition gets invented. Trucking is a very hard way to earn a living, and does not need people like him making the saying I learned a long time ago,” If you are told how much you will make, if their lips are moving, they are lying”, come true.
Samuel lee says
They are all crooks and sociopaths that need to have more regulations and taxes with life sentences attached to violations.
I would even support %95 corporation tax and the death penalty to executive miss behavior.
Ridiculous and illogical. Despite the corruption that goes on by nefarious, greedy individuals. The system of capitalism is the best path to prosperity. Excessive taxation of any entity only stifles growth and removes the incentive for entrepreneurship. Who would be left to work to support a system that took 95% of your profits?
I’m a small independent trucking company that is incorporated. The system isn’t broken, only certain and a small amount of the participants. We are still far better off as a nation than as would be the type of system you suggest.
Just because government doesn’t manage a budget while spending wastefully. We could all be taxed 100% and live as serfs, we’d still be broke as a nation. It was once said, “if the federal government was in charge of the Sahara desert, in fives years it would be out of sand. “
Maybe he can share a cell with the serial killer truck driver from a few stories down?
Billy Gerard says
What about giving something to the drivers he left stranded out in the road! Make sure the government gets theirs first! There maybe justice for some. But what about the real victims?! I’m done!
Ditto. I gave several of the stranded drivers rides when I could. It was sad.
So what happened to the government saying employees first. Seems like the oay out is government first employees last. How nice u.s. government what a way to screw over the working person who needs the check the most to survive. I am sure some politicians got a little of this money also.
ether bawny says
Im glad no matter what to see he was sentenced to jail and thats a sign that there is still a lil justice left in the country. But his sentence was reduced and the actual jail time will be 2.5 yrs not actually 7. People who have been jailed know the jail system uses a different clock based on good behavior and over crowded jails. However some jail time is better than none when so many corporate crooks are getting away with damaging the public. An example those banks who were able to pay the DOJ a fine for their corrupt banking practices during the housing bubble mortgage collapse. One bank was openly known to have washed over 800 million of international gang money and they were not prosecuted because there are no cops running the DOJ. Its all lawyers and its all fines and citations. So be a criminal and save enough to pay the citations. Screw justice and people. This is our government corruption and most people in general have no clue whatsoever what happened how and why and they don’t raise hell and make a scene over these things and the banks walk away free and clear. What you see here is a small potato and easy to prosecute. Like the cop who nails you for parking but misses the serial killer in the car. They go for whatever easy and fast money than do any real cop work.
Not that im ungrateful for some justice its that this type of investigating should be for all those who have committed financial crimes against drivers or investors or grandmas retirement fund thieves. All who steal and cheat the people of their earnings. Including the government itself. But since the public allowed the NSA to become the overall master of authority its they who decide who gets prosecuted and who goes free. No longer are the powers separated. But be sure NSA wont interfere unless FBI comes across a big hitter with politicians on his payroll. But the days when the FBI could investigate the CIA or other government offices are over. Its really who has been contributing to who in the government that gets away. Oh and those banks if you recall were also given a load of your money to offset the fines they paid. They will nail the millionaires now but the billionaires will walk.
ether bawny says
I may have gotten the jail time wrong…Its lil less than 2.5
Not in a federal prison, he will serve the bulk of that sentence.
Since he doesn’t like to take responsibility for himself, there is a good chance that he will continue that behavior while he’s in prison & end up doing more time than his sentence. That happened to a guy I knew a long time ago who was sentenced to 5 years’ probation & ended up spending 8 years in lock down, until he finally got it that he was his own worst enemy.
Linda Barton says
Did the drivers get reimbursement? The article says the government got theirs. I didn’t see that the drivers got justice.
I was at a Tulsa motel when this went down….watching these drivers cone in confused with all their stuff was heartbreaking but I can say I’m surprised. This guy doesn’t hold the monopoly in phucking over drivers. I watched a carrier send a team after truck & trailer at a papermill when the driver died. Practically stepped over her body yonget that money making load…this guy got off easy !!
Oops wasn’t surprised
Frank in upstate NY says
Our government is just as corrupt as Arrow is….and has been since the introduction of the Federal Reserve….why does anyone think that we’re a 3rd class nation now?
We have a 550 billion import export equation that is unsustainable. That is….we import 550 billion more than we import…and our truckers….who run this country….make shit…and keep it running because they don’t understand their’ collective powers. Think guys….think! A full time OTR trucker should be making at least 100K a year….in every circumstance…in every state. Period.
James Pursell says
Frank…..you are 100 percent correct! but American men and women have lost their courage to stand up for what is fair and right. Truckers are the most underpaid and highly regulated working class out there! All they have to do is go home for a few days and the pay would jump!!! Instead, they just shrug their shoulders and say oh, well. Its a job and drive on down the road, never seeing their families and die broke. Unless you work for a union carrier that is. If every trucker refused went home and waited, believe me, pay would increase. All truckers should be paid by he hour! We are on a 14 hour clock, only fair to be paid by the hour not by the mile. There is so much free labor given when getting paid by the mile.
14 hours + 4
We work 14 hours on the clock but what about the hours we use doing paperwork. Getting ready for the next load. Phone calls at midnight because the dispatcher changes his mind.
That’s right Frank! I’m a second generation truck driver, 61 years old, 37 years experience. When I was a little kid, this was a respected line of work, and my dad made more than almost any other trade or profession. A full time driver should be making at least six figures.
Everything is not equal, not every drivers performance merits pay anywhere close to that. If it did it would be reality. Then if you got, you wouldn’t be satisfied and you’d whine for more. You get paid based on your value and what you believe you’re worth. If you’re not, why are any of us there?
That being said, I’m in the fortunate situation of making over that amount. It didn’t happen overnight though.
It is somewhat fascinating to me how scoundrels often take on the look of a scoundrel. It’s notoriously difficult to detect dishonesty from facial features alone, but sometimes dishonesty does manifest itself, Pinocchio-style, in people’s faces, as it clearly did with this guy.
Floyd Wilson says
And now he will file bankruptcy to avoid paying his victims.
(Good story for the trucker) Not directly related but how big some of these (desk) crooks are today… On all levels… About 6 years ago I was picking up a Kraft frozen load for Wally world… Shipping on December 30…. When I went to get the bills…Bills were dated Jan 1 the upcoming year…..I stopped a few feet from the bullet proof shipping window. And realized (having worked inventory and sales years earlier) Kraft wanted to make sure the sale of the product to Walmart was taking place the following year… So I turned around and walked back up to the window…And of course got the typical what do you want stupid truck driver look from the bi lingual woman in shipping…I told her…Hey I can’t go down the road with these bills they don’t have the correct shipping date… She tells me hold on…Calls someone …And then says wait.. A few minutes latter a golf shirt office idiot comes out and says what’s the problem…I said look let’s step outside for a minute. Ok he says…I didn’t want to talk about it in front of the other drivers sitting there… Outside the door I told him …Look whatever Kraft wants to do with end of the year inventory and sales figures I don’t care. That’s between them the IRS their stockholders and God..What I care about is what happens to little old me. If God forbid I have a wreck and some just wonderful Cop, lawyer, and judge says I was falsifying a stupid log book…. He says well what do you want…I said listen. Just get me something printed out with this trailer and date and time on it that says shipped from here…He then say’s ok…And very happily goes into the shipping office and prints me out the top page (OF course no product) and comes back out. I looked at it and said …See that works… Now my ass is protected..The point is today big corruption is taken for granted. In this case for whatever reason Kraft wanted to keep the product on inventory. But don’t put me the poor truck driver in jeopardy because the almighty corporate powers told shipping to manipulate the shipping dates…Stay safe…