Two Fleets Accuse Pilot Flying J CEO of Fraud over Fuel Rebates
A federal lawsuit against truckstop chain Pilot Flying J has been amended, accusing the company's top executive of directing an alleged fuel rebate scheme.
A federal lawsuit against truckstop chain Pilot Flying J has been amended, accusing the company's top executive of directing an alleged fuel rebate scheme. The alleged rebate skimming first surfaced in April 2013 as part of a criminal probe by the FBI and IRS.
In a civil case, Keystone Freight Corp. and National Retail Transportation Inc. accused Pilot Flying J CEO Jimmy Haslam of orchestrating employees to defraud the two trucking companies of money they were due in the form of rebates from fuel purchases from 2004 through 2013. The suit makes similar allegations against former Pilot Flying J officials.
About a year ago, Pilot Flying J agreed to an $84.9 million settlement with thousands of trucking companies in the case. However, neither Keystone nor National Retail were part of that agreement.
Also this past summer Pilot Flying J agreed to $92 million in fines from the federal government to avoid prosecution, though individuals can still be indicted.
Since an April 2013 raid on Pilot Flying J’s Knoxville headquarters and other offices by federal agents, Haslam has denied any wrongdoing by the company and claimed he had no personal knowledge of alleged efforts to bilk customers. At least 10 Pilot Flying J employees have pleaded guilty to charges in the case, but none have been sentenced.
Read more about it from the Cleveland Plain Dealer.
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