The SEC’s complaint alleged that Meek, the former president and chief operating officer of Celadon Group, Inc., and Peavler, the former chief financial officer of Celadon Group Inc., participated in a scheme to buy and sell trucks at inflated prices, in some cases double or triple the trucks’ fair market value. The complaint alleged these transactions were intended to conceal Celadon’s failure to write down the trucks’ net book values and take impairment charges. The complaint further alleged that as a result, Celadon overstated its pre-tax income, net income, and earnings per share in its annual report for the period ending June 30, 2016, and in its subsequent filings through the period ending December 31, 2016. Additionally, the complaint alleged Meek and Peavler lied to auditors about the true nature of these transactions.
Source: SEC Obtains Judgment After Executives Settle Case Alleging an Inflated Truck Pricing Scheme
