“Investors depend on reliable financial statements to make informed decisions,” said Joel R. Levin, director of the SEC’s Chicago Regional Office. “As we allege, these former, high-ranking executives deprived investors of truthful, reliable information on Roadrunner’s financial health. Instead, they employed deceptive accounting to manipulate earnings in an effort to chase earnings targets and projections.”

The SEC’s complaint, filed in federal district court in Milwaukee, alleges that Armbruster, Naggs and Wogsland violated the antifraud and other accounting-related provisions of the federal securities laws. The complaint seeks permanent injunctions, penalties and officer-and-director bars against all defendants, disgorgement plus interest from Wogsland, and clawback bonuses and other incentive-related compensation paid to Armbruster while the alleged fraud was taking place. A parallel criminal complaint has been filed by the Department of Justice. The SEC said the investigation is still ongoing.