Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

3 Former Pilot Flying J Execs Sentenced in Fuel Rebate Fraud

A ‘hypercompetitive’ culture at Pilot Flying J contributed to a fuel-tax-fraud scheme, said one of three more former executives who have been sentenced to jail for their part.

November 8, 2018
3 Former Pilot Flying J Execs Sentenced in Fuel Rebate Fraud

Fleets targeted in the scam expected larger diesel fuel rebates from Pilot Flying J than they actually received.

HDT file photo

2 min to read


Three more former Pilot Flying J executives will spend time behind bars over their roles in in a fraud scheme that cheated trucking companies out of millions of dollars of promised fuel rebates.

"Our culture at the very top was to be hyper-competitive," former executive John "Stick" Freeman told the federal judge, according to a report on Knoxnews.com, admitting that he let it go too far.

Ad Loading...

Freeman and Brian Mosher were sentenced to two-and-a-half years in prison, while Vicki Borden received a two-year sentence. Freeman and Mosher must each pay a $100,000 fine, and Borden a $75,000 fine. The judge said he was lenient because the three pleaded guilty early in the case and handed over evidence to prosecutors.

Former Pilot president Mark Hazelwood will spend 12-and-a-half years in prison for overseeing the scheme. A federal jury convicted Hazelwood in February of wire fraud, witness tampering and conspiracy to commit wire fraud.

Mosher, a former regional sales director, testified at Hazelwood’s trial, and got the lightest sentence in exchange.

Ad Loading...

As Knoxnews reports:

Freeman, Pilot's former vice president of sales, began defrauding trucking companies as early as 2007. He bragged shamelessly about the fraud to bosses, employees and trainees, court records show - including at meetings recorded by an undercover FBI informant.

The fraud case dates back to 2012, when the FBI discovered that Pilot Flying J sales employees were operating a fuel-rebate scam that victimized trucking companies. The trucking companies were promised certain amounts back in rebates, but sales staff would reduce the amount at a later date to increase profits. Because of the complexities of the fuel buying market, most did not realize they were being shorted the promised rebates.

The FBI found that over the course of several years, Pilot Flying J defrauded as many as 5,500 customers of more than $56 million in owed rebates that were not paid.

Nineteen executives and staffers of the truck stop giant have either admitted or been convicted by a jury of participating in the fraud scheme. Fourteen pleaded guilty, three were convicted, and two were granted immunity.

Ad Loading...

Pilot Flying J’s board of directors has admitted criminal responsibility and paid a settlement for the fraud. Pilot CEO Jimmy Haslam has denied knowledge of the scheme and has never been charged.

More Fuel Smarts

Fuel Smartsby StaffAugust 31, 2026

California Bill Could Shed Light on Electric Truck Prices

Why do battery-electric Class 8 trucks remain so expensive? A California bill headed to Gov. Gavin Newsom would give fleets and state agencies more visibility into what manufacturers charge.

Read More →
Illustration of Freightliner Cascadia on highway with engine cutaway
Equipmentby Deborah LockridgeAugust 27, 2026

Detroit Opens Orders for EPA 2027 Engines

Detroit isn’t starting from scratch to meet EPA 2027 diesel emissions standards. Its Gen 6 DD13 and DD15 engines keep much of today’s platform while updating the fuel and aftertreatment systems.

Read More →
Group of people and zero-emission trucks during ceremony announcing a West Coast ZEV corridor.
Fuel Smartsby News/Media ReleaseAugust 26, 2026

Zero-Emission Truck Corridor Planned for West Coast

California, Oregon, Washington, British Columbia and Baja California are coordinating plans for truck charging and hydrogen fueling from Canada to Mexico.

Read More →
Ad Loading...
YouTube thumbnail showing Kenworth T880e electric truck and KW marketing director Kyle Kimball.
Equipmentby Deborah LockridgeAugust 25, 2026

A Closer Look at Kenworth’s Electric T880E Vocational Truck [Video]

Learn more about Kenworth's T880E battery-electric vocational truck at the Paccar Technical Center, including its range, applications, upfitting considerations, and PTO options, in this HDT Spotlight video.

Read More →
White heavy-duty Kenworth T880e battery-powered straight truck with flatbed
Equipmentby Deborah LockridgeAugust 25, 2026

Kenworth T880E Brings EV Power to Vocational Trucks

A closer look at the Kenworth T880E’s range, charging, powertrain and upfit options — and where fleets are showing the most interest.

Read More →
Woman with red hair superimposed on background showing a King Fio electric Volvo truck at the port, plus the HDT Truck Fleet Innovators 2026 logo
Fuel Smartsby Deborah LockridgeAugust 14, 2026

Jennie Abarca Is Proving Electric Trucks Can Do the Job

HDT Truck Fleet Innovator Jennie Abarca is building confidence in fleet electrification one load at a time while openly sharing the challenges she encounters along the way as a small-fleet owner.

Read More →
Ad Loading...
EquipmentJuly 23, 2026

Cummins Adjusts 2027 Engine Rollout After EPA Proposal

The engine maker will gradually introduce its new Model Year 2027 diesel engines while continuing to offer current models during the transition, citing the EPA's proposed emissions rule changes.

Read More →
Four men in suits on the National Mall with giant video screen showing capitol building in the background
Equipmentby Deborah LockridgeJuly 10, 2026

EPA Proposal Could Ease 2027 Truck Costs and Buying Uncertainty

The proposal doesn't change the tougher NOx standard, but it would revise key implementation requirements that manufacturers say have driven up costs and complicated fleet purchasing decisions.

Read More →
Illustration showing Paccar MX engine with sketch illustration of DEF fill tank in background
Equipmentby Deborah LockridgeJuly 7, 2026

Cummins, Paccar Ease DEF Derates After EPA Guidance

Updated diesel engine software gives truck operators more time to address emissions-system issues while staying compliant with EPA emissions standards.

Read More →
Ad Loading...
Illustration with wrenches in background with "Maintenance in the Messy Middle: Biodiesel" text and NACFE Run on Less logo
Maintenanceby Jack RobertsJuly 2, 2026

Maintenance in the Messy Middle Part 3: Biodiesel

Biodiesel can reduce emissions, improve fuel-system lubricity and use existing diesel infrastructure. But NACFE’s Messy Middle maintenance report says fleets must actively manage storage, cold-weather operation, filters and oil drain intervals to avoid problems.

Read More →