The Chattanooga trucking firm headed by Joseph Lipsey III, who was arrested on charges of supplying cocaine and alcohol to teens, has reiterated that he will have no management or ownership role with the firm going forward.
Lipsey was arrested on serious federal felony charges along with his wife and 19-year-old son relating to teen parties at Aspen, Col.
It was speculated that some of the firm's lucrative disaster supply contracts with the federal government might be in jeopardy in the wake of the high-profile arrests.
Lipsey officials said Monday, "Effective immediately, Johnny Jones has been named Chief Executive Officer of Lipsey Logistics and as Chief Executive Officer of Lipsey Trucking.
The position is a permanent one. Mr. Jones will also continue in his current roles as President and Chief Operations Officer of Lipsey Logistics.
"Joseph Lipsey III, the company’s former Chief Executive Officer, has relinquished his management roles and ownership shares in the company in light of personal allegations against him and members of his family. While the allegations relate to personal matters and have nothing to do with our business, the company takes them seriously and does not wish for them to distract from our operations. Mr. Lipsey has transferred all of his voting shares in the company to Mr. Jones.
In the past, Mr. Lipsey was principally an investor in the company and has never been involved in its day-to-day operations. Regardless, we would like to assure the public that his exit from the business is immediate and permanent, and that he will have no ownership of or control over the companies going forward.
"Additionally, we are pleased to announce that in October 2019, John White, current President of Lipsey Transport and former President of U.S. Xpress, will step in to backfill the role of President of Lipsey Logistics. Mr. White brings extensive knowledge and experience in the trucking and transportation space, having served in a variety of senior operational and marketing roles at U.S. Xpress over the course of a number of years.
"Despite recent news media reports about this management change, this message contains the most accurate current information about Lipsey Logistics. We will also be sharing any future important information about the company directly on our website.
"We value our customers and sincerely appreciate the trust they place in our company. We are committed as ever to delivering the high-quality services they expect and deserve."