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June 28, 2019 4:30 PM, EDT

Roadrunner CFO Terence Rogers to Step Down in August

Roadrunner Transportation Systems Roadrunner Transportation Systems

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Terence Rogers, Roadrunner Transportation Systems Inc.’s executive vice president and chief financial officer, has resigned from the company effective at the end of August.

Rogers will continue to assist Roadrunner throughout the transition of his responsibilities, the company said in a June 27 news release.

Terence Rogers

Rogers

The departure is not related to any issues or disagreement regarding the company’s financial disclosures, accounting policies or practices, Roadrunner officials said.

“Terry joined Roadrunner at a difficult time and was tasked with getting our filings current and completing our recapitalization, which was successfully accomplished earlier this year,” CEO Curt Stoelting said. “We appreciate Terry’s willingness to stay on through the transition and wish him all the best in his future endeavors.”

The company has begun a search for his successor.

Roadrunner ranks No. 17 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.

In April, the Securities and Exchange Commission formally charged the former CFO and two of his associates at Roadrunner with accounting fraud and misleading investors about the company’s financial results.

Former CFO Peter Armbruster was accused of hiding expenses by improperly deferring and spreading them across multiple quarters to minimize the impact on net earnings.

Armbruster was alleged to have arbitrarily reduced certain liabilities, creating an income “cushion” that could be used in future quarters to offset expenses, according to a complaint filed in U.S. District Court for the Eastern District of Wisconsin in Milwaukee on April 3.

Two of Armbruster’s associates, Bret Naggs and Mark Wogsland, who worked as controllers in Roadrunner’s truckload business, failed to write off millions of dollars in overvalued assets and overstated receivables as part of the scheme.

The trio also misled Roadrunner’s outside auditor, resulting in financial reports that overstated the company’s profits, it is alleged by SEC officials.

Curtis Stoelting

Stoelting

SEC said it will seek permanent injunctions, penalties and prohibitions against serving as officers and directors against all of the defendants, plus disgorgement plus interest from Wogsland, and clawback bonuses and other incentive-related compensation paid to Armbruster while the alleged fraud was taking place.

Roadrunner terminated Armbruster in 2017 and brought in Stoelting to head a new management team.

The company also relocated its headquarters from Cudahy, Wis., to Downers Grove, Ill., and has restated its financial results dating to 2011.