[DaveP]

Originally Posted by RostyC

This is the world we live in. Screw everyone else, it's me, me, me. Mine, mine, mine!
If convicted, I'm sure there will be no consequences for their actions.

Nah....like devildice said, if it's only HALF true...I don't think after all the bad publicity they got all over the country when they left those drivers stranded, they've got near enough money to pay their way out of some serious prison time.

[GMAN]

I hope that these charges are not true. Only time will tell. Most business owners will do whatever they must to save their companies including putting their money back into the business to keep the doors open. There are those who will loot their companies and let the chips fall where they may with no regard to their employees and creditors. Regardless of the reason, I hate to hear of any business failing. There are no winners when a business fails except the lawyers.

[Heavy Duty]

Originally Posted by GMAN

I hope that these charges are not true. Only time will tell. Most business owners will do whatever they must to save their companies including putting their money back into the business to keep the doors open. There are those who will loot their companies and let the chips fall where they may with no regard to their employees and creditors. Regardless of the reason, I hate to hear of any business failing. There are no winners when a business fails except the lawyers.

Remember TAB is Flying J, they have experince with greed causing bankrupcy. The drivers get hurt the most, the unpaid withholding taxes are really going to hurt. The state of OK has confirmed they owe them.
This should be added as one more reason to not enter a lease purchase, some were almos at the end of their agreements, and will get squat. Do they think Arrow was paying for their trucks?

I'm sure some brokers are disapointed because Arrow was willing to take any cheap load to try and keep cash flow up and now their customers are upset with them for letting their freight get lost in the shutdown.

Going to take a long time for the dust to settle for this one.

[Windwalker]

Originally Posted by GMAN

I hope that these charges are not true. Only time will tell. Most business owners will do whatever they must to save their companies including putting their money back into the business to keep the doors open. There are those who will loot their companies and let the chips fall where they may with no regard to their employees and creditors. Regardless of the reason, I hate to hear of any business failing. There are no winners when a business fails except the lawyers.

While I would also hope the charges are untrue, I'm afraid there's far more to this than just the smoke. With the company in dire financial straights, they buy cars like a Maserati? An airplane? A Citation is a jet aircraft and used ones go for more than $9,000,000. A Maserati goes for about $140,000. A Bentley is about $380.000 I don't have much doubt that Flying J is able to pinpoint the date these purchases were made. If they was made while TAB was in the picture, there was no thought of putting the money into the company. They were lining their own pockets. $$9.5 million would go a long way in keeping a company operating, and pay a substantial amount of driver's back wages.

While it's true that we're only seeing one side of the coin, if those purchases were made while TAB was in the picture, they were not trying to save the company. I worked for an electric motor repair shop (a pretty big one) for 13 years. During that time, the company did go through some lean times. In order to keep the company going, the owner sold his Cessna (single-engine prop) and put the money into the company. They're still going strong today, even though he has passed away, and his sons have taken over the business. If they're buying personal items like that and letting the company go under....

[GMAN]

It is beginning to look as though there may have been some hanky panky going on. I don't understand why anyone would go out and spend that kind of money when their company was in trouble. I think most owners have gone through lean times. Most will put what resources they have into their companies to survive. Of course, they may not have paid cash for those new toys. If they took that much money out of their company when they were having financial difficulties then that was certainly irresponsible. But, we still only have one side of the story. So far, the owners have been silent.

[1catfish]

Originally Posted by Heavy Duty

a guide on how to screw your factoring company. Gman I put it here because I wanted you to see it. It is unbelievable what was going on.

http://ftpcontent.worldnow.com/griff...01/lawsuit.pdf

can somebody tell me in lamens terms what the articles said.

[Windwalker]

There are, (in the documents filed in court) 14 pages of allegations that Arrow execs kept two sets of books. One that had inflated revenues for TAB to look at and "purchase", and the actual records that were for customer billing. The difference between them adds up to something like $12.5 million.

65. During 2009, Doug Pielsticker purchased or caused to be purchased, directly or beneficially, a new Maserati, a Bentley, and Land Rover motor vehicles, an expensive car stereo system, a Cessna Citation Airplane, personal expenses at Southern Hills Country Club, with Arrow Trucking funds, and otherwise systemically looted Arrow Trucking with unwarranted expense reimbursements excessive salaries and benefits, and other payments to support his lavish lifestyle. (The "Doug Pielsticker Transfers")

6. Upon information and belief, Arrow Trucking officers and employees were paid extremely over-market salaries relative to their job duties.

It suggests that either the purchase of these items put the company in financial trouble, or the money skimmed from TAB was used to buy them. There are 15 claims against Arrow Trucking and it's execs, and the court papers are 29 pages long. It says Arrow set up the fraud, then continued to deceive TAB from Sept well into Dec. of 2009.

[1catfish]

Originally Posted by Windwalker

There are, (in the documents filed in court) 14 pages of allegations that Arrow execs kept two sets of books. One that had inflated revenues for TAB to look at and "purchase", and the actual records that were for customer billing. The difference between them adds up to something like $12.5 million.

It suggests that either the purchase of these items put the company in financial trouble, or the money skimmed from TAB was used to buy them. There are 15 claims against Arrow Trucking and it's execs, and the court papers are 29 pages long. It says Arrow set up the fraud, then continued to deceive TAB from Sept well into Dec. of 2009.

thanks for putting it in simple terms, they made the enron guys look like rookies.:thumbsdown:

[GMAN]

Originally Posted by 1catfish

thanks for putting it in simple terms, they made the enron guys look like rookies.:thumbsdown:

Enron involved hundreds of millions of dollars. It is one thing to file a suite and make allegations in court papers. It is quite another to prove their case. This is something that is likely to go on for at least months unless the Arrow people capitulate and not fight the suite. With this much money on the line and possible criminal charges in the wings, I would expect them to fight this with all their resources.

There are a couple of likely scenarios. One is that TAB will be successful and they will push to liquidate all their assets. There will be others who will file claims and that may be another battle. I think the most likely scenario is for either the creditors to force them into involuntary bankruptcy in an attempt to get what assets they can or the owners may file for voluntary bankruptcy in an effort to rebuild the company. In that case, they would likely need a white knight to come in and underwrite their debt and provide working capital. In bankruptcy a trustee is appointed and he could sell the company as a whole and any money would be used to satisfy all creditors. An investor could walk in and take over the company for a smaller amount that it is actually worth. That is assuming that the company actually has any real assets. Creditors might be willing to take less than is owed for a big influx of capital. The owners could work a deal where all their debts are satisfied and no criminal charges will be filed. Secured creditors will have priority. That means that drivers and other workers may or may not receive any compensation. If they do it may not be all of their wages. The back taxes are likely to cause them the most problems. The government will get their money no matter what. Lawyers will make a killing on this deal no matter which way it goes.

[Ronin]

I just got done reading the compaint and man oh man is it a eyeful. Hopefully TAB can get their cash back with interest and the offenders can spend about 40 years in the pen for the RICO charges.