Bobby Peavler and William Eric Meek

The Securities and Exchange Commission today announced the resolution of its accounting fraud action against former Celadon Group Inc. executives William Eric Meek and Bobby Peavler. Meek and Peavler agreed, without admitting or denying the allegations, to the entry of a final judgment that requires them to each pay a $50,000 civil penalty and bars them from acting as an officer or director of a public company for a period of three years.

The SEC's complaint alleged that Meek, the former president and chief operating officer of Celadon Group, Inc., and Peavler, the former chief financial officer of Celadon Group Inc., participated in a scheme to buy and sell trucks at inflated prices, in some cases double or triple the trucks' fair market value. The complaint alleged these transactions were intended to conceal Celadon's failure to write down the trucks' net book values and take impairment charges. The complaint further alleged that as a result, Celadon overstated its pre-tax income, net income, and earnings per share in its annual report for the period ending June 30, 2016, and in its subsequent filings through the period ending December 31, 2016. Additionally, the complaint alleged Meek and Peavler lied to auditors about the true nature of these transactions.

Meek and Peavler, without admitting or denying the SEC's allegations, consented to the entry of a final judgment in which they agreed to be permanently enjoined from aiding and abetting future violations of Sections 10(b), 13(a), 13(b)(2)(A) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 13a-11, and 13a-13 thereunder and from committing future violations of Rule 13b2-2. Peavler also agreed to be enjoined from future violations of Exchange Act Rule 13a-14. The final judgment requires Meek and Peavler to pay a civil penalty of $50,000 each and bars them from acting as an officer or director of a public company for a period of three years.

Meek and Peavler also agreed to be suspended from appearing and practicing before the SEC as an accountant. The SEC's orders, issued on April 7, 2023, permit Meek and Peavler to apply for reinstatement after three years.

The SEC's investigation was conducted by Jaclyn Janssen and Trevor Schumacher and supervised by Amy S. Cotter of the Chicago Regional Office. The litigation was conducted by Jonathan Polish and Ms. Janssen.