TULSA (CN) – A former executive with Arrow Trucking Co. was sentenced Friday to three years in federal prison for his role in a $9.5 million bank fraud scheme.
U.S. District Judge Gregory Frizzell also ordered Jonathan Leland Moore, 38, of Waxahachie, Texas, to pay over $21 million in restitution to the Internal Revenue Service and Transportation Alliance Bank.
Moore pleaded guilty in December to one county of dual-object conspiracy to commit bank fraud and to defraud the United States. Prosecutors said Moore, Arrow’s former chief financial officer, conspired with former CEO Douglas Pielsticker, 47, of Dallas, to rip the federal government off by failing to pay employees’ federal withholding taxes and by making payments to Pielsticker outside of payroll.
“Moore cooperated with the criminal investigation, including testifying on behalf of the government during Pielsticker’s sentencing hearing last week,” prosecutors said in a statement Friday. “On Oct. 9, Pielsticker was sentenced to serve 7 1/2 years in prison and ordered to pay $21,026,682.03 in restitution for his role in the conspiracy and for attempting to evade his individual income taxes.”
The scheme cost the federal government $9.562 million and involved the men submitting false invoices to Transportation Alliance Bank for payment, prosecutors said.
Arrow Trucking abruptly went out of business in 2009, leaving its truckers stranded nationwide with no money to purchase fuel to return to their homes, according to media reports.
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