Arrow Trucking CEO: 'No Knowledge' Of Financial Troubles

The former owner of Arrow Trucking is speaking out about what led to his company's failure and is passing the blame. Doug Pielsticker says he had no idea about Arrow's financial troubles until it was too late.

Tuesday, February 23rd 2010, 5:04 pm

By: News On 6


By Dan Bewley and Terry Hood, The News On 6

TULSA, OK -- The former owner of Arrow Trucking is speaking out about what led to his company's failure and is passing the blame. Doug Pielsticker says he had no idea about Arrow's financial troubles until it was too late.

Doug Pielsticker and his former company were sued by a bank in Utah that claims it was cheated out of more than $12 million, but Pielsticker says it's not his fault and is fighting back.

Arrow Trucking closed its doors December 22nd, leaving more than 1,300 people without a job and hundreds of drivers stranded across the country. 

Its main lender, Transportation Alliance Bank of Utah, said Arrow spent months sending dozens of false invoices totaling $12.5 million. The bank also claims Arrow did not pay $9 million in payroll taxes.

Doug Pielsticker was Arrow's President and CEO. In a 78 page court filing, Pielsticker dodges responsibility and puts the blame at the feet of Jonathan Moore, Arrow's former Chief Financial Officer. 

Pielsticker says he had "no knowledge" that Arrow was "allegedly insolvent" and says Jonathan Moore is the person responsible for creating the fake invoices. He goes on to say that Moore "concealed from him" the economic problems that Arrow was facing. 

Pielsticker also blames Moore for failing to take care of the payroll taxes. He says Moore told him he had worked out a deal with the IRS to resolve the matter and recalls a conversation he says he had with Moore.

  • With Pielsticker saying, "So you're comfortable that what we're doing (with tax payments) is completely legal?" 
  • Moore's response, "Yes, yes I do think it's legal. I'll say that." 
  • Pielsticker says he asked again and Moore replied "...I feel absolutely confident in this..."

Pielsticker also says it was the Utah bank that's responsible for stranding Arrow's drivers. He says the bank owned the gas cards and it was their decision to turn them off, which forced drivers to look for other ways to get home the week of Christmas.

The Utah bank says it loaned Arrow money before to stay afloat, but it was never repaid.

In another court filing, Jonathan Moore claims he was following the orders of Pielsticker and Arrow's attorney in creating the fake invoices. 

The News On 6 left calls and e-mails with all of the parties involved. Nobody responded.

2/9/2010  Related Story: Former Arrow Trucking Employees Struggle To Survive

logo

Get The Daily Update!

Be among the first to get breaking news, weather, and general news updates from News on 6 delivered right to your inbox!

More Like This

February 23rd, 2010

July 4th, 2024

April 15th, 2024

April 12th, 2024

Top Headlines

July 24th, 2024

July 24th, 2024

July 24th, 2024

July 24th, 2024