TruckingIndustry.news

8 Former Flying J Execs Indicted In Fuel Rebate Scam

by Jana Ritter - Published: 2/10/2016

Nearly 3 years after the FBI and IRS raided the corporate headquarters of Pilot Flying J in what became a highly publicized alleged fuel rebate scandal, federal indictments were unsealed on Tuesday revealing charges against the company’s ex-president, Mark Hazelwood, and 7 other former executives. The indictment list does not include Pilot Flying J’s famous owner, Jimmy Haslam.

                                                           Pilot Flying J raided

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What the indictments do say however, is that Hazelwood and the other executives had allegedly agreed on a fuel program to purposefully defraud small trucking companies by promising rebates as part of their fuel contracts and only rebating a portion of the promised amount. The fraud scheme continued for 5 years and the 8 people indicted are now being charged with conspiracy, fraud, witness tampering and lying to federal agents. Meanwhile 10 other employees have pleaded guilty and have been cooperating with the investigation, providing authorities with key evidence involving things that essentially became part of performing their "job." So far, the presented evidence includes an email from the company’s former sales Vice President, John Freeman, instructing others how to deal with customers and play along with the scheme. “Say one thing, do another,” he instructed.

                                                       8 Flying J execs indicted

The indictment also outlines how sales staff often promised customers a certain discount but gave them a lesser one and it provides several examples of employees and their bosses discussing how to coordinate the lies they were telling customers and to not to get caught. In one email, an employee quotes Freeman’s instructions as "we just need to sing from the same hymn book." There are also other emails where employees discussed the need to determine which customers were likely sophisticated enough to catch on to the fraud and to only prey on the less sophisticated ones.

                                                           Jimmy Haslam

Despite the evidence, Freeman, Hazelwood and the other 6 indicted former employees all pleaded not guilty on Tuesday. However in July 2014, Pilot Flying J had signed to an agreement with prosecutors to pay the government a $92 million penalty, accepting responsibility for the criminal actions of its employees. Then Pilot paid another $85 million to settle a class action lawsuit involving 5,500 trucking companies. Owner Jimmy Haslam has continuously denied any knowledge of the fraud or any personal involvement, as he says he is not involved with the company’s day-to-day operations.

Pilot Flying J’s new officials issued a statement saying they were "disappointed and saddened" by news of the indictments. "We can say that since this unfortunate episode began, the company has put in place policies and procedures unparalleled in the industry to prevent anything like this from happening again."


Randy Schaad
Randy Schaad
Haslam should be convicted for owning and designing such shitty so called truckstops called pilot. The dumbasses pull up on the fuel island for a hour because there to fat and lazy to park there trucks. I dont buy fuel at shit pilots
Steven Willard
Steven Willard
Hell you must not be a real truck driver.
Randy Schaad
Randy Schaad
Steven Willard really lol and what is a real truck driver please oh please tell me
Bobby Shane Eustice
Bobby Shane Eustice
No he not he drive Volvo
Dan Guise
Dan Guise
and their cashers are as dumb as a box of rocks
Janis Cameron Rogers
Janis Cameron Rogers
Without those horrible truckers u literally couldn't buy anything
Samuel Lee
Samuel Lee
Pilot Flying J is like the big banks. There to funnel money to the government without paying criminal penalties.
Steven Wright
Steven Wright
Why did they have to pay $92 million to the government, but only $85 million to the people they ripped off? Looks like P/FJ isn't the only crook here.
Michael Davis Brunson
Michael Davis Brunson
True Dat
Craig Zwiener
Craig Zwiener
It's a shame how the name Flying J is used for this article in the headline. That was a good brand. In this article, the use of Pilot alone is appropriate. My 2 cents.
Juan Garcia
Juan Garcia
No wonder every time I fuel at Flying J or pilot I get 10 times the points. .
Nicholas Tomcheck
Nicholas Tomcheck
The government don't like competition that's why they received 92 million. Talk about a ponzy scheme study your history on social security!
Phil Killerlain
Phil Killerlain
I have yet to figure out ! Why everyone of these fuel company's ( J & TAs & almost every major ) give these discounts ? Why not set a reasonable pump price and charge everyone the same ? Then the large carriers would not have such an advantage over the smaller companies and single O/Os ! It would also get rid of these kind of troubles ! Because anytime you have the kind of money that was involved in these schemes ! Someone is tempted to screw you !
Irron Boutin
Irron Boutin
Discount is pretty good right now being leased to a carrier. At loves in Duson La exit 92 on 10. Pump is $1.94 our price is $1.46. But that's only because oil is low. When it goes back up, discount is only 6 to 10 cents a gallon.
Dan Guise
Dan Guise
then ppl wonder why i dont patronize pfj all id be doing is linning their pockets with hard earned money for fuel thats $.10- $.20 per gal higher than any other place
Robert Groves
Robert Groves
When it comes ta oil co all of them are crooks the only ones that get caught are the ones not payin the rite people at the time
Dale Stengel
Dale Stengel
This is why I don't fuel at big truck stop smaller places have cheaper fuel
Jason Scholbrock
Jason Scholbrock
Dam. Government is gting money hunger tht all it is folks money
Randy Rekow
Randy Rekow
Name something that's not a scam somehow at some level!
Kevin Richardson
Kevin Richardson
Funny thing is owner is republican and govenor or former now
James R Grein
James R Grein
Owner's brother is the Governor of TN, not the owner himself.
Phil Killerlain
Phil Killerlain
They are the sons of the owner , so they both are owners the Governors is just ran for him !
Michael Mathews
Michael Mathews
Lol but he fucks u over like a Democrat. Hint just like our president
Todd Faull
Todd Faull
Discounts at some large truckstops are runnin over 50 cents right now. There has to be some collusion somewhere for all the supplier s to be keeping pump prices that far above actual price.
Dan McClain
Dan McClain
Bet they get probation for 2 years and get to keep their jobs
Shawn Taylor
Shawn Taylor
How is it the f&@king government gets 92 million and the defrauded companies only get to split 80 something.
Donald Gough
Donald Gough
Shocker. Probably goes on more than you think
Ronald Smith
Ronald Smith
I am waiting for the time when truckers get enough balls to say we have had enough and take over!
Steven Willard
Steven Willard
That will never happen again.
Lorin Wiese
Lorin Wiese
18 people total arrested and this goes on for 5 years and Asshole Haslam is not involved?
Stanley Zesch Jr.
Stanley Zesch Jr.
not surprising
Christopher W. Bryant
Christopher W. Bryant
I hope they spend life in prison.
Greg Hill
Greg Hill
Old news
Steve Chenoweth
Steve Chenoweth
Eric Hoffman
B.J. and the Bear
B.J. and the Bear
It's about time.