Mark Hazelwood, former president of Pilot Flying J, has been sentenced to 12 1/2 years in federal prison for his role in a fuel-rebate scam that defrauded trucking companies of millions of dollars.
Hazelwood was also ordered to pay a fine of $750,000. Hazelwood was found guilty of conspiracy to commit wire fraud and mail fraud in a trial earlier this year. He was one of three former Pilot Flying J sales employees convicted in the trial.
A fourth former sales team member, Karen Mann, was found not guilty of all charges by the same court.
The fraud case dates back to 2012 when the FBI discovered that Pilot Flying J employees were scamming trucking companies through their promised fuel rebates. Sales staff would reduce the amount of fuel-rebates that were promised to trucking companies and keep the profits. An investigation found that Pilot Flying J defrauded trucking companies of more than $56 million in owed rebates that weren’t paid.
Separate from this trial, the company reached a settlement in 2014 with authorities and affected trucking companies totaling $179 million.