Former Pilot Flying J Execs Take Plea Bargain in Fuel Skimming Scandal
Four former Pilot Flying J executives accused in a diesel fuel rebate scandal have agreed to cooperate with federal investigators.
by Staff
July 25, 2017
Pilot Flying J paid $85 million to settle with customers affected by a fuel rebate scandal and an additional $92 million in fines. Photo: TruckingInfo.com
2 min to read
Pilot Flying J paid $85 million to settle with customers affected by a fuel rebate scandal and an additional $92 million in fines. Photo: TruckingInfo.com
In a case dating from 2012, four former Pilot Flying J executives accused of skimming money in a diesel fuel rebate scam have struck a plea deal and agreed to cooperate with federal investigators.
According to The Washington Post , vice president of sales for the company, John Freeman, who authorities say was the mastermind of the scheme, former regional sales manager John Spiewak, former direct sales group supervisor Vicki Borden, and former sales representative Katy Bibee have all agreed to the plea bargain.
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A federal investigation into the fuel scam led to criminal charges against executives at the company, resulting in an $85 million settlement with some of the defrauded customers as well as a $92 million penalty to the government. Pilot Flying J CEO Jimmy Haslam claims to have had no knowledge of the scheme.
In statement, the company said it was “sadden” by the admission of wrongdoing and noted it has taken steps to “make whole every customer negatively affected” by the scandal and taken steps to make sure such activity never happens again.
The company also said that "It is Pilot Flying J’s commitment to be a great partner to trucking companies across North America, always focusing our undivided attention on the best interests of our customers, team members and business.”
Trial is set in Federal court in Chattanooga, TN, for the remaining Pilot Flying J executives indicted in the scandal, including former Pilot president Mark Hazelwood, former vice president Scott “Scooter” Wombold, and two other former members of the sales team, Heather Jones and Karen Mann, according to the Knoxville News-Sentinel.
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