It’s been over four years since the FBI raided Pilot Flying J’s headquarters in Knoxville, Tennessee. The fallout from the “cost-plus” fuel rebate scam has already been severe. And now the criminal trial for the few former PFJ employees who didn’t plead guilty has finally begun.
Fourteen former employees including former VP John Freeman have pled guilty to various charges stemming from the fuel rebate scam. PFJ’s board of directors reached an agreement to pay $92 million and confess criminal responsibility for the fraud, and the company has paid out an estimated $85 million in settlements to trucking companies that it allegedly defrauded. But on top of all of that, it’s also paying for the legal defense of the four former employees who have not pled guilty – including former president of PFJ, Mark Hazelwood.
The trial has only been going for a little over a week and is expected to last at least six weeks. So far, according to the Knoxville News Sentinel, lawyers have been showing email evidence, hearing testimony from those who reached plea deals, and rehashing information that was known since the original FBI affidavit was released back in 2013.
Attorneys played recordings taken by Vincent Greco, who was wearing a wire and acting as an informant for the FBI during its investigation.
In one recorded conversation with Freeman, heard for the first time in public this week, Greco got Freeman talking about the fuel rebates and Hazelwood. Freeman indicated that Hazelwood knew about the “manual discounts.”
Hazelwood was also included on emails in which PFJ staff discussed the scam. In one such email the Director of Sales for the Northeast, who got caught not giving a client the agreed upon rebate, CCed Hazelwood on an email to regional account representative Karen Mann saying “Karen, do what is necessary to rebate the difference between what they thought they got and what we ‘mistakenly’ were charging for a three-month period.”
But some of the evidence brought against the defendants also seemed to implicate PFJ owner Jimmy Haslam.
Earlier in the same recorded conversation referenced above, Greco asked Freeman if Haslam knew about the scheme.
“I mean, I called Jimmy and told him I got busted at Western Express,” said Freeman. “Oh he knew it… Absolutely. I mean, he knew all along that I was cost-plussin’ this guy. He knew it all along. Loved it. We were making $450,000 a month on him, why wouldn’t he love it?”
Haslam, who is also the owner of the Cleveland Browns and brother to Tennessee Governor Bill Haslam, has not been charged with a crime stemming from the fuel rebate scam. And after the recording was played in court, Pilot Flying J issued a statement saying: “As we have said from the outset, Jimmy Haslam was not aware of any wrongdoing.”
While no new smoking gun allegations have yet surfaced during the trial, there are still at least 5 weeks left to go – and with a trial as big as this, maybe even longer.
Source: truckinginfo, truckinginfo, clevescene, knoxnews, knoxnews, wkyc, triblive, wkyc, truckersreport, truckersreport, truckersreport
“Steal a little and they’ll put you in jail; steal a lot and they’ll make you king.”
~Bob Dylan
Once Flying J took out their buffets and replaced them with Denny’s restaurants, I have not spent one penny on their fuel!! And, from about 8 years ago, remember their “hot fuel” scam? The only decent truckstops left are Petro’s!
And a few Mom and Pop truckstops. Pilot has always been crap and always will be. So I don’t buy fuel there either.
I agree! Why would companies still fuel there is beyond me!
Yikes!!! Looks like PFJ likes gambling,you win big or you lose big.
Whatever the amount they cheated their customers out of,must ve been very significant,IF PFJ hadn t gotten caught,they d still be making big money,but they got caught,so they had to reimburse their customers (sadly,no interest),now,who knows how much the defense is going to cost…and PFJ has to defend the king,and I am pretty sure the FBI is going after him… boys and girls,grab your popcorn,this is just getting interesting.
It may get to the point where PFJ has to charge for all parking to offset their loss.
Weird,Flying J got rid of their original restaurant and I don t see much traffic into Denny’s,I myself don t care very much for it…I wonder:Just, what is wrong with a truckstop restaurant? They probably wanted a more upscale restaurant,to attract the comunity with a better known franchise….I know 🙂 this comment has NOTHING to do with the issue at hand,I read some other comment and it led my feebke mind in that direction.
Anyone who knows Jimmy hasslem knows that he is a number guy…He knew..most definitely he knew
Hardly ever got to park or fuel at the hook damn things always filled up by4:00pm. That’s how popular they were.mostly all clean and good services. Clean showers. I retired before Pilot got in the picture. Can’t understand how plain and simple GREED ruined such a great concept.
They are a bunch of underhanded crooks,from the top down!
If all truckers were to QUIT fueling AT either truck stop you won’t have to worry about paying to park. There won’t be anything except space to park.