Last week, Douglas Pielsticker, the former CEO of Arrow Trucking was sentenced to 7 years in prison. When he gets there, he won’t have to wait long for his Chief Financial Officer to join him. Jonathan Leland Moore, former CFO for Arrow Trucking has been sentenced to just shy of 3 years in prison for his part in the abrupt closure of Arrow just days before Christmas, which left drivers stranded across the country and over 1,700 employees out of work.
According to a press release issued by the FBI, Moore pled guilty late last year to one count of a dual-object conspiracy to defraud the United States and to commit bank fraud. As part of his plea deal, Moore agreed to cooperate with the criminal investigation and even testified last week during Pielsticker’s sentencing hearing.
Moore, Pielsticker and others were all allegedly in on the decision to continually borrow money from the bank to keep up the appearance that the company was doing well. In order to qualify for loans, the conspirators artificially inflated their earnings reports, making it seem like they could afford to pay back the loans.
When the money from the bank wasn’t enough, they started taking money from employee paychecks. They would withhold money that was supposed to be going to federal income tax withholdings, Medicare, and social security taxes, but they never paid the money to the IRS. The money just remained in Arrow’s accounts instead. They then lied to the IRS in order to cover up the theft of more than $9.5 million that the Federal Government should have received.
Despite all the stolen money, Arrow was still in dire straits and the bank eventually caught on and suspended their accounts. Driver fuel cards stopped working without warning, and the conspirators immediately closed up shop, not even bothering to inform their drivers of what had happened – leaving them to find their own ways home just days before Christmas.
Pielsticker used the money in part to finance his own luxurious lifestyle, buying multiple luxury cars and paying for a lavish wedding using company money – money that Moore paid to him outside of the normal payroll system to avoid detection.
In addition to serving 35 months in prison for his role in the conspiracy, Moore will serve three years of supervised release and must pay $21,026,682.03 in restitution to the IRS and to the Transportation Alliance Bank (TAB).
“I deeply regret my actions and involvement,” said Moore during his sentencing hearing.
According to prosecutors, Moore never saw any monetary benefit from the scheme other than being allowed to keep his job. Prosecutors claimed that the 35-month prison term was “fair and just.”
Source: tulsaworld, newsok, fbi, courthousenews, justice, thetruckersreport
Image Source: tulsaworld
Anthony McCraney says
The same kind things are happening at K&B Transportation…THEY NEED TO BE INVESTIGATED.TRULY CROOKED COMPANY…STAY AWAY.
Jason says
CEO of Werner needs to be arrested… worst company I have ever worked for.
Donna says
Jason, what was your beef with Werner?
Bobthenailer says
Gee I can answer this one, they ripped off trainees for years. Paid them $300 to $400 a week but required 70 hrs from them. Or promised them routes and home time to get them in then after they are there tell them those routes are seniority based and it could be three years or more before one comes open.
Brian White says
The damage and upheaval these to clowns cause hundreds of families to experience should’ve resulted in much longer sentences for both.
Jon says
I was working for CFI at the time. We received a message across our Qualcomms, telling us to give ANY Arrow drivers a ride to our nearest terminal and they’d hook em up with a job. I happily picked up several drivers and made sure they were safe.
The prison terms served by these jerks satisfies no justice for these affected families.
Don Dierdorff says
Their attitude is prevalent in the trucking world, most unfortunately.
JJ says
Enjoy them prison bars and correctional officers….sooner or later corruption will catch up with anyone. I rather make an honest living, treat my fellow man the same as I want to be treated, and doing the right thing is worth its weight in gold.
Tim says
Yeah you really gotta watch your step if you’re too small to bail. You’re way better off screwing millions if you want to get out of serving prison time.
Chuck says
Exactly…..OR if your last name is CLINTON or someone else politically connected!!
Shawn C. says
I would like to throw a big THANK YOU to all of the drivers that pulled together to help get those stranded drivers home! The people involved with hurting the drivers and their families didn’t even come close to getting what they deserved for what they had done. Maybe that will change when they get to prison.
Royce says
Sounds kinda like they went to the mob????
Mike says
There are several big companies that the CEO’s have ripped off their drivers. They do it in many ways. Denied reimbursements, not matching 401 k plans as promissed, not paying drivers for layovers / detention while charging the customer for these. Shorting drivers on mileage pay. They bill actual miles to consignees and pay drivers what they call rand mcnally miles typically 10 to fifteen percent lower than actual miles. In 2009 I kept track of miles run and miles paid for the year it ended up to be over 6029 miles less than I worked. I quit keeping track for my own sanity. Owners skim off profits by creating a leasing company that they then pay large sums of money to for equipment leasing conveniently bypassing payroll records.
These are realities of the industry and drivers put up with this for the work. Shutting down the company and leaving drivers stranded while they gobbled up their companies cash flow should net them more than just a few yearseconds in jail. I see restitution for lawyers, government taxes / court fees and such but no mention of compensation for the poor drivers left to fend for themselves. They should ban together for a class action suit.
anthony mondovi says
If you still work for this company it is your fault, plain and simple.
Victor Jones IV says
“According to prosecutors, Moore never saw any monetary benefit from the scheme other than being allowed to keep his job.”
You really think the companies Cheif Financial Officer who is told to write huge checks, hide money, and defraud the government isn’t going to be kicked down money and other things?? I would think that they “Shared the love” with this Moore guy just so he would keep his mouth shut. C’mon.
southboundtrucker says
good losers got what they deserved for one
justice prevailed…