Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Pilot Flying J Fuel Rebate Trial Begins

The trial of four former Pilot Flying J officials accused of fuel rebate fraud started this week. The prosecution and defense offered opening statements in a Tennessee courtroom, with prosecutors painting a picture of an alleged culture of deceit at the company.

by Staff
November 7, 2017
Pilot Flying J Fuel Rebate Trial Begins

HDT file photo

2 min to read


HDT file photo

The Pilot Flying J Fraud trial has started this week with the prosecution and representatives of the four accused former executives offering opening statements in a Chattanooga, Tennessee, courtroom.

Mark Hazelwood, former executive vice president and president of Pilot Flying J, Scott Wombold, former vice president of national accounts, and two former sales representatives, Karen Mann and Heather Jones, are on trial for a diesel fuel rebate scam. In a case dating back to 2012, the FBI found that Pilot defrauded as many as 5,500 customers of more than $56 million in rebates that were owed but never paid. The company reached settlements with authorities and customers in 2014 for $92 million and $87 million respectively.

Ad Loading...

In an opening statement, federal prosecutors described the sales department of Pilot Flying J as being "infected" with fraud, according to local news channel ABC 6 Wate.com. The defendants were accused of lying to and cheating customers in order to profit themselves, specifically going after customers that it saw as easier targets.

In September, four former Pilot employees plead guilty to mail fraud and wire fraud in connection with the scam, including former Pilot Sales Vice President John Freeman, former Pilot Regional Sales Manager John Spiewak, former Director of Inside Sales Vicki Borden, and former regional sales representative Katy Bibee. Prosecutors said it was likely that the 14 former Pilot employees who have pleaded guilty for their roles in this scandal will be brought in as witnesses.

Attorneys for Hazelwood and Wombold argued that their clients were only guilty by association. Attorneys for Mann and Jones argued that their clients did not intend to commit fraud and were unaware of any conspiracy to scam customers, according to a CBS Cleveland report.

Ad Loading...

The FBI and IRS raided Pilot Flying J headquarters in Knoxville, Tennessee, in 2013, gathering evidence that included emails and audio recordings of Hazelwood and his alleged co-conspirators discussing their intent to cheat less-sophisticated trucking companies out of their rebates. In one recording, Hazelwood allegedly not only gave verbal approval of the expansion of the fraud scheme but also directed his sales executives on how to choose victims.

More Fuel Smarts

Illustration showing DEF tank and Detroit engine
Equipmentby Deborah LockridgeJune 18, 2026

DTNA Software Update Gives Truckers More Time Before DEF Derates Take Effect

The changes reflect EPA guidance aimed at reducing downtime caused by emissions-system faults while maintaining compliance requirements.

Read More →
Illustration of exhaust aftertreatment system on an AI-inspired blue background and a green fuel pump nozzle in the foreground.
Maintenanceby Deborah LockridgeJune 15, 2026

New Agentic Predictive Maintenance Report Demonstrates How Degraded Aftertreatment Systems Waste Fuel

Questar analyzed a large mixed-class fleet and discovered it was wasting as much as $30 in fuel per vehicle, per day, because of mechanically degraded aftertreatment systems.

Read More →
Amazon electric cargo bike on New York City street
Fleet ManagementJune 15, 2026

New York City's Microhub Project is Delivering Results

Trucking, last-mile delivery companies, and environmental advocates like what they are seeing so far with New York's microhub program.

Read More →
Ad Loading...
Red Kenworth truck pulling Paper Transport trailer
Fuel Smartsby Deborah LockridgeJune 2, 2026

Lessons Learned About Alternative Fuels: Start Small, Stay Flexible

Practical advice on adopting alternative fuels and ZEVs from HDT's 2026 Top Green Fleets, from renewable diesel and natural gas to electric trucks.

Read More →
Composite image of different angles of the Kempower charger
Fuel Smartsby News/Media ReleaseMay 29, 2026

Kempower Adds Flex EV Charger to Help Support Transition to Megawatt Charging

The Kempower Mega Satellite Flex has both a CCS and MCS connector, allowing operators to serve both types of heavy-duty vehicles.

Read More →
White Hino Le electric tractor on show floor
Equipmentby News/Media ReleaseMay 26, 2026

Hino Adds Electric Class 6/7 Truck

Hino says the Le Series is an important step in the company's efforts to reduce environmental impact and support its customers’ sustainability goals.

Read More →
Ad Loading...
Sigma Powertrain BEV transmission.
Fuel Smartsby Jack RobertsMay 26, 2026

Can Multi-Speed EV Transmissions Solve Heavy Trucking’s Biggest Electric-Vehicle Problems?

A startup called Sigma Powertrain believes purpose-built multi-speed gearboxes can boost efficiency, reduce battery size and improve gradeability for heavy-duty battery-electric trucks.

Read More →
Red Hendrickson e-axle at ACT Expo booth
Equipmentby News/Media ReleaseMay 22, 2026

Hendrickson Debuts Electraax E-Axle for Medium-Duty Trucks

Developed with Driventic, Hendrickson's new integrated e-axle is designed to improve efficiency, reduce weight, and extend range in Class 6-7 EV applications.

Read More →
Fueling trucks.
Fuel SmartsCover Storyby Deborah LockridgeMay 18, 2026

50 Ways Fleets Can Cut Fuel Costs Now — Without Buying New Trucks

Fuel savings don’t come from one big change. They come from dozens of small ones. Here’s how leading fleets are stacking gains across drivers, routing, maintenance, and more.

Read More →
Ad Loading...
Collage of HDT Top Green Fleets with logo
Fuel Smartsby Deborah LockridgeMay 18, 2026

Top Green Fleets 2026: How Fleets Are Reducing Emissions in the Real World

What works in sustainable trucking today? Heavy Duty Trucking's Top Green Fleets are finding practical ways to cut fuel use, reduce emissions, and keep freight moving.

Read More →