The owner of a Castle Shannon freight corporation was charged today with wire fraud and mail fraud in federal court, accused of diverting money from trust accounts until nearly $2.9 million in unpaid bills built up.
Ronald A. Moog, 78, of Whitehall, ran Moog Trans Financial Services, according to the seven-page criminal information filed today.
The company handled freight payments and audited freight spending for large shippers, according to the information. It kept the firms' funds in trust accounts until it paid the shipping bills.
From 1997 through 2010, Mr. Moog improperly withdrew money from the trust accounts and delayed payment of freight bills in order to cover for the shortfalls, prosecutors alleged.
The scheme was uncovered in April 2010, "once the victims had been presented with outstanding unpaid freight carrier invoices in the aggregate amount of approximately $2,893,280," according to the charges. That reflects "the amount of money improperly withdrawn by the defendant," according to the charges.
Mr. Moog's attorney, Paul G. Kay, declined immediate comment.
Rich Lord: email@example.com or 412-263-1542. Twitter: @richelord.