A criminal case against two former executives from Indianapolis-based Celadon Group Inc. could begin soon in court. Our partners at the Indianapolis Business Journal report, however, the pandemic could further delay the case.
Former President and Chief Operating Officer William Eric Meek and former Chief Financial Officer Bobby Lee Peavler were indicted in 2019 on multiple charges for their alleged roles in a securities and accounting fraud scheme that resulted in a more than $60 million drop in shareholder value.
The indictment alleges Meek, Peavler, and others at Celadon knew by 2016 that many of the company’s trucks had declined in value and had serious mechanical issues. The defendants allegedly schemed to conceal tens of millions of dollars in losses from shareholders, banks and the public instead of accounting for the decline in truck values.
The trial is currently scheduled to begin on February 22 and expected to last four weeks. Judge Jane Magnus-Stinson says the trial will only take place as scheduled if the court’s Indianapolis district has a COVID-19 positivity rate below 10% as of February 8, according to the IBJ.
Meek and Peavler each face 10 charges of fraud and making false statements to a public company’s accountants. Peavler faces two additional charges of making false statements.
You can read the full article from the Indianapolis Business Journal by clicking here.