Celadon Will Pay $42.2M in DOJ, SEC Financial Fraud Cases (1)

Celadon Group Inc. agreed to pay $42.2 million to end DOJ and SEC suits accusing it of securities fraud, the agencies said April 25.

The freight company overstated the value of trucks on its books, lied to its auditors, and filed false financial documents, the Justice Department and Securities and Exchange Commission said. Celadon settled both agencies’ cases in the U.S. District Court for the Southern District of Indiana.

Celadon subsidiary Quality Companies LLC attributed a much higher book value to its trucks than they could actually be sold for on the open market, the SEC said. "[H]igh-ranking executives at ...