Monday, March 30, 2015
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Haslam-owned truck-stop chain, owner of Cleveland Browns, to pay $92M fine

By
July 16, 2014 |

NASHVILLE, Tenn. — The truck-stop company owned by Cleveland Browns owner Jimmy Haslam and Tennessee Gov. Bill Haslam has agreed to pay a $92 million penalty for cheating customers out of promised rebates and discounts, authorities announced Monday.

In an agreement with the U.S. Attorney’s Office for the Eastern District of Tennessee, Pilot Flying J has accepted responsibility for the criminal conduct of its employees, ten of whom have pleaded guilty to participating in the scheme.

For its part, the government has agreed not to prosecute the nation’s largest diesel retailer as long as Pilot abides by the agreement. Among other conditions, Pilot has agreed to cooperate with an ongoing investigation of current and former employees. The agreement does not protect any individual at Pilot from prosecution.

The agreement was signed by U.S. Attorney Bill Killian on Thursday and attorneys for Knoxville-based Pilot on Friday.

Nashville criminal defense attorney and former prosecutor David Raybin, who has followed the case but is not involved, said the agreement most likely signals that Pilot CEO Jimmy Haslam will not face charges.

“No prosecutor would enter into an agreement like this, ask for this kind of sanction, unless they didn’t have enough evidence to indict Haslam,” he said. “Also, Pilot would not agree to pay unless they felt the government would not prosecute him.”

FBI special agent Robert H. Root said in an affidavit filed in federal court last year that the scheme was known by a variety of euphemisms including “manual rebates.” Sales team members would make reduce the amount of money due to trucking company customers they deemed to be too unsophisticated to notice, according to the affidavit.

The scheme was widely known in the sales department, according to court documents, with supervisors teaching other employees how to do it.

Court records said the scheme lasted from at least 2007 until an FBI raid in April 2013.

Jimmy Haslam has said he was unaware of the scheme. Through a spokesman, he declined an interview on Monday, but issued a statement: “We, as a company, look forward to putting this whole unfortunate episode behind us, continuing our efforts to rectify the damage done, regaining our customers’ trust, and getting on with our business.”

Gov. Bill Haslam holds an undisclosed ownership share in the company but has said he is not involved in Pilot’s day-to-day operations. Pilot has annual revenues of around $30 billion.

In May, several top executives abruptly left the company. Pilot officials have not said why the employees left, but the agreement with prosecutors acknowledges that the company has terminated or placed on leave employees who violated company policies. It also acknowledges that Pilot acted quickly to investigate problems with the rebate program and repay cheated customers with interest.

Pilot agreed in November to pay out nearly $85 million to settle claims related to the fraudulent withholding of fuel rebates and discounts in a class-action lawsuit with 5,500 trucking companies. Several companies have filed separate lawsuits against Pilot that are ongoing.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Easter activities, events abundant

By Susan Hiland | From Page: A1 | Gallery

 
Christians begin Holy Week with Palm Sunday celebrations

By Amy Maginnis-Honey | From Page: A1 | Gallery

2 drivers killed in same area, an hour apart

By Amy Maginnis-Honey | From Page: A1, 1 Comment

 
My guide to dining out

By Tony Wade | From Page: A2, 2 Comments

Local governments post week’s meeting times

By Susan Hiland | From Page: A3

 
Top young spellers to compete for Solano title

By Glen Faison | From Page: A3

Police investigate shooting off North Texas Street

By Amy Maginnis-Honey | From Page: A3, 1 Comment | Gallery

 
Vallejo police seek leads in weekend homicide

By Amy Maginnis-Honey | From Page: A3

Biz Buzz: Re/Max hires new Realtor

By Susan Hiland | From Page: A10

 
Biz Buzz: PAL receives donation from glass company

By Susan Hiland | From Page: A10 | Gallery

 
Biz Buzz: Wiseman officer names Perez to key post

By Kevin W. Green | From Page: A10

.

US / World

Police ramp up rail-crossing citations after recent crashes

By The Associated Press | From Page: A1

 
Analysis finds unequal pay for women on California Capitol

By The Associated Press | From Page: A3

Songwriter injured in California crash; motorcyclist killed

By The Associated Press | From Page: A3

 
Taylor Swift wins artist of the year at iHeartRadio Awards

By The Associated Press | From Page: A4

Drownings along Rio Grande spike after enforcement surge

By The Associated Press | From Page: A5

 
Grandma is a centerfold: Rest home bares all for calendar

By The Associated Press | From Page: A5

Police: 2 bodies found in NYC building explosion rubble

By The Associated Press | From Page: A5

 
Islamic State group beheads 8 Shiites in Syria’s Hama

By The Associated Press | From Page: A7

Waving fronds around the world, Christians mark Palm Sunday

By The Associated Press | From Page: A7

 
Air Canada plane makes hard landing short of Halifax runway

By The Associated Press | From Page: A7

Small tsunami generated in Pacific after earthquake

By The Associated Press | From Page: A9

 
.

Living

Community Calendar: March 30, 2015

By Susan Hiland | From Page: A2

 
Today in History: March 30, 2015

By The Associated Press | From Page: A2

Horoscopes: March 30, 2015

By Holiday Mathis | From Page: B6

 
Parenting: If a father is abusive, a mother must act

By The Washington Post | From Page: B8

 
Horoscopes: March 31, 2015

By Holiday Mathis | From Page: B8

.

Entertainment

TVGrid March 30

By Daily Republic Syndicated Content | From Page: A10

 
TVGrid March 31

By Daily Republic Syndicated Content | From Page: A11

Michelle Obama declares ‘Black Girls Rock!’

By The Associated Press | From Page: A11

 
.

Sports

Spartans Final Four-bound after 76-70 OT win over Louisville

By The Associated Press | From Page: B1

 
Duke back in Final Four after 66-52 win over Gonzaga

By The Associated Press | From Page: B1

 
Hamlin wins for 25th time, and fifth time at Martinsville

By The Associated Press | From Page: B2

Jimmy Walker wins hometown Texas Open

By The Associated Press | From Page: B2

 
Oakland OF Josh Reddick won’t be ready for start of season

By The Associated Press | From Page: B2

California Chrome heads to Britain, to race at Royal Ascot

By The Associated Press | From Page: B2

 
Vettel wins Malaysian GP to end Mercedes streak

By The Associated Press | From Page: B2

Joe Gibbs on son: most courageous person I’ve been around

By The Associated Press | From Page: B2

 
Chodounsky defends slalom title at US Alpine Championships

By The Associated Press | From Page: B2

South Carolina earns 1st Final Four berth, beats FSU 80-74

By The Associated Press | From Page: B2

 
Turner says Saturday regional finals highest-rated in decade

By The Associated Press | From Page: B2

Apology for wrong anthem for El Salvador before game in US

By The Associated Press | From Page: B2

 
Montoya holds off Power to give Penske 1-2 sweep at St. Pete

By The Associated Press | From Page: B2

Stanford’s Randle chases school scoring record, title at NIT

By The Associated Press | From Page: B2

 
Hamlin wins for 25th time, and fifth time at Martinsville

By The Associated Press | From Page: B2

Cain goes 4 innings in Giants win over LA

By The Associated Press | From Page: B3

 
Graveman pitches into 7th inning as A’s beat Brewers 7-0

By The Associated Press | From Page: B3

.

Business

.

Obituaries

Robert Roberts

By Nancy Green | From Page: A4

 
Janice Jewel Thompson

By Nancy Green | From Page: A4

.

Comics

Peanuts March 30

By Daily Republic Syndicated Content | From Page: B5

 
Zits March 30

By Daily Republic Syndicated Content | From Page: B5

Blondie March 30

By Daily Republic Syndicated Content | From Page: B5

 
Pickles March 30

By Daily Republic Syndicated Content | From Page: B5

Get Fuzzy March 30

By Daily Republic Syndicated Content | From Page: B5

 
Sally Forth March 30

By Daily Republic Syndicated Content | From Page: B5

For Better or Worse March 30

By Daily Republic Syndicated Content | From Page: B5

 
Baldo March 30

By Daily Republic Syndicated Content | From Page: B5

Garfield March 30

By Daily Republic Syndicated Content | From Page: B5

 
Dilbert March 30

By Daily Republic Syndicated Content | From Page: B5

Baby Blues March 30

By Daily Republic Syndicated Content | From Page: B5

 
Frank and Ernest March 30

By Daily Republic Syndicated Content | From Page: B5

B.C. March 30

By Daily Republic Syndicated Content | From Page: B5

 
Wizard of Id March 30

By Daily Republic Syndicated Content | From Page: B5

Beetle Bailey March 30

By Daily Republic Syndicated Content | From Page: B5

 
Rose is Rose March 30

By Daily Republic Syndicated Content | From Page: B5

Sudoku March 30

By Daily Republic Syndicated Content | From Page: B6

 
Bridge March 30

By Daily Republic Syndicated Content | From Page: B6

Word Sleuth March 30

By Daily Republic Syndicated Content | From Page: B6

 
Crossword March 30

By Daily Republic Syndicated Content | From Page: B6

Cryptoquote March 30

By Daily Republic Syndicated Content | From Page: B6

 
B.C. March 31

By Daily Republic Syndicated Content | From Page: B7

Blondie March 31

By Daily Republic Syndicated Content | From Page: B7

 
Peanuts March 31

By Daily Republic Syndicated Content | From Page: B7

Baldo March 31

By Daily Republic Syndicated Content | From Page: B7

 
Rose is Rose March 31

By Daily Republic Syndicated Content | From Page: B7

Beetle Bailey March 31

By Daily Republic Syndicated Content | From Page: B7

 
For Better or Worse March 31

By Daily Republic Syndicated Content | From Page: B7

Dilbert March 31

By Daily Republic Syndicated Content | From Page: B7

 
Garfield March 31

By Daily Republic Syndicated Content | From Page: B7

Pickles March 31

By Daily Republic Syndicated Content | From Page: B7

 
Zits March 31

By Daily Republic Syndicated Content | From Page: B7

Sally Forth March 31

By Daily Republic Syndicated Content | From Page: B7

 
Get Fuzzy March 31

By Daily Republic Syndicated Content | From Page: B7

Wizard of Id March 31

By Daily Republic Syndicated Content | From Page: B7

 
Baby Blues March 31

By Daily Republic Syndicated Content | From Page: B7

Frank and Ernest March 31

By Daily Republic Syndicated Content | From Page: B7

 
Word Sleuth March 31

By Daily Republic Syndicated Content | From Page: B8

Bridge March 31

By Daily Republic Syndicated Content | From Page: B8

 
Sudoku March 31

By Daily Republic Syndicated Content | From Page: B8

Cryptoquote March 31

By Daily Republic Syndicated Content | From Page: B8

 
Crossword March 31

By Daily Republic Syndicated Content | From Page: B8