Judge Denies Motion to Compel Pilot Records

By Walter F. Roche Jr.

An Ohio judge has denied a motion filed by trucking companies to force Pilot Travel to turn over  computer database on its sales practices.
Franklin County Common Pleas Court David C. Young concluded that forcing the release of the entire SalesForce database was overly broad and burdensome. The motion was filed by FST Express and HB Logistics, truckers who have charged Pilot cheated them out of millions of dollars in promised rebates.
Forcing Knoxville, Tenn. based Pilot to turn over the records "would be an immense cost of both time and money to Pilot," Young wrote in a four-page order.
He noted the database contains records of Pilot's dealings with more than 5,500 customers over a ten year period.
He also noted that a similar request filed a previous case had been turned down by U.S. District Judge Amul Thapar.
Young, however, noted that if the trucking firms wanted specific targeted records from the database following discovery and depositions "Pilot should comply."
The Ohio suit is one of two remaining civil suits stemming from a federal probe that has produced 10 guilty pleas by former Pilot sales staffers.
The other remaining suit is pending in federal court in Alabama.
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Haslam Declines to Release Testimony

By Walter F. Roche Jr.

Citing "confidential" information, Cleveland Browns owner James A. "Jimmy" Haslam apparently will not authorize the release of the transcript of his recent closed door testimony in a suit brought by truckers against the Haslam family owned truck stop firm.
Following the Tuesday eight-hour session, lawyers for the trucking companies disclosed that Haslam had agreed to testify only if his testimony would be kept secret. They challenged Haslam to authorize the release of his testimony.
Asked this week if Haslam would allow his testimony to be made public, his attorney, Stephen Brody responded by citing confidential information apparently contained in Haslam's testimony.
"Mr. Haslam's deposition addressed information designated as confidential or highly confidential and restricted from disclosure pursuant to the courts' protective orders governing discovery in the pending civil cases," Brody said in a written response.
Haslam's testimony is the latest development in a suit brought by two trucking companies against Pilot Travel Centers, the Haslam family owned truck stop chain. HB Logistics  and FST Express filed the suit in Franklin County Ohio court charging Pilot had cheated them out of millions of dollars in promised diesel fuel rebates.
In a statement issued following the deposition Haslam told reporters he couldn't comment on his testimony because it was confidential.
 Charles Cooper, one of the trucking company reporters responded by charging that it was Haslam himself who demanded his testimony be kept secret.
 "We can't discuss it (Haslam's testimony) because Mr. Haslam insisted that his testimony be sealed and therefore shielded from public view," Cooper said. "If Jimmy Haslam has nothing to hide, we encourage him to instruct his lawyer to make his testimony today public."
Haslam has insisted that he did not know of the now very public scheme by top Pilot sales officials to cheat unsuspecting truckers out of promised diesel fuel rebates.
In addition to the pending suit in Ohio, Pilot is being sued on similar charges in federal court in Alabama.
The rebate scheme, first made public following an FBI raid on Pilot's Knoxville, Tenn. headquarters, has been costly for the truck stop giant. A class action civil suit was settled for $85 million. Similar claims by the federal government for $92 million.
Ten former Pilot sales staffers have entered guilty pleas on mail and wire fraud charges stemming from the federal probe. Eight others have entered guilty pleas and are scheduled for trial next year.
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Truckers: Haslam Demanded Testimony Be Sealed

By Walter F. Roche Jr.

The lawyer for two trucking companies charged today that Cleveland Browns owner James A. "Jimmy" Haslam demanded that his testimony about rebate fraud in a family owned company be sealed from public view and kept secret.
The statement followed a daylong closed door deposition in which Haslam was questioned about his knowledge of a rebate fraud scheme which already has cost Pilot Travel more than $175 million.
Stating that he regretted he could not discuss Haslam's testimony, Charles Cooper, the truckers' lawyer, said,"We can't discuss it because Mr. Haslam insisted that his testimony be sealed and therefore shielded from public view."
Haslam and his lawyer, meanwhile, issued a statement contending that the testimony simply reiterated what the truck stop chain owner has been saying all along, that he knew nothing about the rebate fraud against dozens of trucking companies.
The conflicting statements are the latest developments in a suit brought by FST Express and HG Logistics against Pilot in Franklin County court in Ohio.
In his statement Cooper charged that Pilot engaged in massive fraud and estimated the final total would exceed $2 billion. Disputing the claim Haslam testified voluntarily, Cooper said the truck stop executive did so because he was under subpoena.
Denying the claim by Haslam's lawyer that his clients were seeking a windfall, Cooper said the trucking firms were seeking an answer to one question: "How could this massive fraud occur right under Jimmy's nose. We believe it's fair to ask the question and we believe our clients deserve an answer," Cooper stated, adding"If Jimmy Haslam has nothing to hide, we encourage him to instruct his lawyer to make his testimony today public."
Haslam's deposition was taken in Pilot's hangar at the McGee Tyson Airport in Alcoa, Tenn.
Following the session, A.B. Culvahouse, one of Haslam's lawyers, said the Pilot executive told the attorneys, what he has stated publicly, that he knew nothing about the rebate scheme.
"Our client openly and truthfully answered all their questions. As Jimmy has said from the beginning he had absolutely no knowledge of any improper conduct related to customer fuel discounts," Culvahouse said in a prepared statement.
"As I have said throughout this ordeal, I knew nothing about the misconduct of some of our former employees," Haslam said, adding that he could not go into further detail at this time.
Haslam's testimony has been sought for months by the two trucking firms who filed suit in Franklin County Ohio charging Pilot cheated them out of promised rebates and provided inaccurate information about the price the truck stop chain was actually paying for the fuel.
Haslam had publicly denied any knowledge of the scheme, but ten former sales staffers already have entered guilty pleas to charges related to the scheme. Others face trial on similar charges next year.
Pilot paid nearly $85 million to settle a class action civil suit stemming from the scheme. Another $92 million was paid to settle claims by the federal government.
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Haslam Gives Sworn Testimony in Rebate Suit

By Walter F. Roche Jr.

Cleveland Browns owner James A. "Jimmy" Haslam was questioned under oath behind closed doors today about his knowledge of a scheme by sales staffers at the family owned Pilot Travel Centers to cheat truckers out of millions of dollars in promised diesel fuel rebates.
The questioning took place in Pilot's hangar at the McGee Tyson Airport in Alcoa Tenn. Records at the Federal Aviation Administration show four Pilot aircraft, including two Lear Jets, are housed in that hangar.
Following the session, A.B. Culvahouse, one of Haslam's lawyers, said the Pilot executive told the attorneys, what he has stated publicly, that he knew nothing about the rebate scheme.
"Our client openly and truthfully answered all their questions. As Jimmy has said from the beginning he had absolutely no knowledge of any improper conduct related to customer fuel discounts," Culvahouse said in a prepared statement.
"As I have said throughout this ordeal, I knew nothing about the misconduct of some of our former employees," Haslam said, adding that he could not go into further detail at this time.
Haslam's testimony has been sought for months by two trucking firms who filed suit in Franklin County Ohio charging Pilot cheated them out of promised rebates and provided inaccurate information about the price the truck stop chain was actually paying for the fuel.
Haslam had publicly denied any knowledge of the scheme, but ten former sales staffers already have entered guilty pleas to charges related to the scheme. Others face trial on similar charges next year.
Pilot paid nearly $85 million to settle a class action civil suit stemming from the scheme. Another $92 million was paid to settle claims by the federal government.
The Ohio suit was filed by FST Express and HG Logistics. A third suit by an Alabama trucking firm was recently brought back to federal court following a federal appeals court ruling.
In addition to the two Lear Jets, federal records show Pilot owns two Dassault Aviation aircraft.
The location of the deposition was switched to the Pilot hangar at Haslam's request, according to a recent filing in the Ohio suit. It had originally been scheduled at a Knoxville law firm office.
Contact: wfrochejr999@gmail.com

Haslam Deposition Location Switched

By Walter F. Roche Jr.

The location of the scheduled deposition of Cleveland Browns owner James "Jimmy" Haslam has been switched just days before it is set to occur.
Papers filed in Franklin County Court in Ohio show the questioning by trucking company attorneys will take place in a hangar at the McGee Tyson Airport in Alcoa, Tenn.
According to the filing the change was made at the request of Haslam. Originally the deposition was scheduled to take place Tuesday in a Knoxville law firm office.
The questioning, which will begin at 9:30 a.m., comes in a suit filed by trucking companies who have charged that the Haslam family owned truck stop firm cheated them out of millions of dollars in promised diesel fuel rebates.
The trucking firms have been trying for over a year to get Haslam's under oath testimony on the fuel rebate charges. He has stated repeatedly that he did not know about the scheme by Pilot sales executives to cheat unsuspecting truckers out of their promised rebates.
Ten former Pilot executives already have entered guilty pleas to charges relating to the rebate skimming scheme which was uncovered during a federal grand jury investigation.
According to the court notice Haslam's deposition will take place in a Pilot hangar at the Alcoa airport.
Contact: wfrochejr999@gmail.com

AL Pilot Rebate Suit Back in Federal Court

By Walter F. Roche Jr.

A federal appeals court has ruled that one of the two remaining rebate fraud suits against Pilot Flying J must be heard in federal court in Alabama.
In a 15-page ruling the 11th Circuit Court of Appeals overturned the decision of a district court judge who had dismissed the suit, citing a lack of federal jurisdiction. The original suit was filed in federal court by Wright Transportation of Mobile, Ala, in the wake of the disclosure of a federal probe of Pilot Flying J's diesel fuel rebate practices.
The appeals court concluded that the federal court retained jurisdiction even though all federal claims under the Class Action Fairness Act (CAFA) had been dropped or dismissed and only state law claims remained.
Pilot's attorneys had argued the case should remain in federal court, while Wright sought dismissal so the claims could be pursued in state court.
Steve Brody, a Pilot attorney, said the decision puts the case in federal court where it belongs. Charging that Wright apparently thought the litigation would bring a windfall, Brody added, "We hope the 11th Circuit decision dispels that unrealistic belief."
The decision will end the ongoing litigation in Alabama state courts, but will apparently have no effect on separate litigation against Pilot in Franklin County Circuit Court in Ohio.
In that suit brought by FST Express and HG Logistics, Pilot CEO and Cleveland Browns owner James A. "Jimmy" Haslam has been subpoenaed for a Dec. 13 deposition where he is expected to be questioned about his knowledge of the rebate fraud scandal. He has consistently denied any  knowledge of the scam.
Knoxville, Tenn. based Pilot already has paid some $175 million to settle claims by other trucking firms and the federal government. Ten former Pilot sales executives have entered guilty pleas to mail and wire fraud charges as a result of a federal grand jury probe of the rebate fraud. Eight others former Pilot staffers have entered not guilty pleas and await trial next year.
As the appeals court recounted in its decision, Pilot has been charged with systematically reducing promised diesel fuel rebates for truckers who sale staffers thought would not notice.
Citing prior decisions on the issue, the appeals court said that even though the class action claims were no longer part of the case, the federal court retained jurisdiction.
"We therefore conclude the CAFA continues to confer original federal jurisdiction over the state law claims in this suit," the ruling states.
"That jurisdiction continues to survive even after later events meant there would be no class action claims," the three judge panel concluded.

Jimmy Haslam Deposition Set for Dec. 13

By Walter F. Roche Jr.


Cleveland Browns owner James A. "Jimmy" Haslam will be questioned under oath on Dec. 13 on his knowledge of a rebate skimming scheme by sales executives at the Haslam family owned truck stop firm Pilot Flying J.
According to a notice filed in Franklin County Ohio court the deposition will take place in Knoxville, Tenn. and will be videotaped. It will be conducted at the law offices of Ritchie, Dillard, Davies & Johnson beginning at 9:30 a.m.
Haslam has repeatedly denied any knowledge of the multi-million dollar scheme, but he has never been questioned under oath.
Aubrey Harwell, a Nashville, Tenn. attorney who has represented the trucking firm, said in an email response to questions that Haslam would comply with any lawfully executed subpoena. Earlier this week a Pilot spokeswoman acknowledged that negotiations over a Haslam deposition were ongoing.
The deposition comes in a suit by two trucking firms, HB Logistics and FST Express, against Pilot, the largest truck stop firm in the country. They contend they are owed millions of dollars in promised rebates.
Haslam at first refused to agree to a deposition, but later said he would agree only if a series of conditions were met, including a time limit and final action on a related federal lawsuit.
HB and FST are two of the three trucking firms still pursuing the recovery of promised rebates on the purchase of diesel fuel which they claim were never paid. A third is pending in Mobile, Ala.
Ten former Pilot sales executives have entered guilty pleas to charges of mail and wire fraud as a result of a federal probe of the rebate scheme. Eight others have been indicted and are scheduled for trial next year. All eight have entered not guilty pleas.
Pilot already has paid some $175 million to settle claims by truckers and the federal government as a result of the investigation, which first became public when the FBI conducted a raid on Pilot's Knoxville headquarters on April 15, 2013.
According to a lengthy FBI affidavit filed in U.S. District Court in Knoxville, Pilot routinely cheated truckers out of promised rebates. Details of the scheme were learned from informants who secretly tape recorded sales meetings where the scheme was openly discussed.
Contact: wfrochejr999@gmail.com

Haslam Deposition Due Next Month.

By Walter F. Roche Jr.



Cleveland Browns owner James A. Haslam will be deposed before the end of the year in an Ohio suit brought by trucking firms who are charging that the Haslam family owned Pilot Travel Centers cheated them out of millions of dollars in promised rebates.
In a statement issued Wednesday in response to questions, Pilot spokeswoman Rachel Albright said Haslam's lawyers were currently negotiating with the trucking firms to set final details for the deposition to be conducted in Knoxville, Tenn.
While noting that Haslam has asserted that his deposition was not necessary, Albright said he had agreed several months ago to be questioned under oath.
"As a result, we have been working with plaintiffs' counsel and expect Mr. Haslam's deposition to occur before the end of the year," the Pilot spokeswoman wrote.
Shawn Organ, an attorney for the plaintiff trucking companies, said that details of the deposition scheduling would be filed soon in the Franklin County court.
The disclosure comes on the eve of a key hearing in the case scheduled for Thursday before Franklin County Judge David C. Young.
Haslam has insisted that he had no knowledge of a scheme by Pilot sales executives to cheat trucking firms out of promised rebates.
His testimony is being sought in an Ohio suit brought by two truckers, FST Express and HB Logistics.
His testimony is also being sought in an Alabama suit brought by Wright Transportation. That firm also has charged that it was cheated out of promised rebates.
Court records in the Ohio suit show HB and FST also have issued a subpoena for records of Comdata, a fuel card company that acts as an intermediary between trucking companies and fuel suppliers.
The rebate cheating scandal already has proven costly for Pilot, the largest truck stop firm in the country.
The firm has paid some $175 million to settle charges in an Arkansas class action and claims by the federal government.
Ten former Pilot executives have entered guilty pleas to mail and wire fraud charges while another eight are scheduled to go on trial next year.
Contact: wfrochejr999@gmail.com

Arguments Continue as Key Pilot Hearing Approaches

By Walter F. Roche Jr.

With a key hearing date approaching, Pilot Travel and two of its one time trucking customers are continuing to debate and they can't even agree when the debate should end.
Franklin County Ohio Judge David C. Young has set Nov. 17 as the date for a hearing on whether the two trucking firms, HB Logistics and FST Express, can get access to Pilot's SalesForce database.
The judge will also hear arguments on whether Pilot can file another response to the trucking firm's latest filings in support of its motion for access to SalesForce.
The arguments over arguments is but the latest development in two of the three remaining civil suits stemming from the charges that the Knoxville, Tenn. based truck stop firm routinely cheated diesel fuel customers out of promised rebates.
In the latest filing, lawyers for Pilot are charging that the truckers recent filing included a document that is confidential under a protective order issued in a federal court suit. In fact the document contains information from the SalesForce database on a company called Wright Transportation, an Alabama trucking firm.
Wright is the third firm still suing Pilot in an ongoing suit in Mobile, Ala.
In fact Pilot lawyers argue, the document proves their point: that truckers new that when Pilot told truckers they would be getting a discount based on the cost of fuel, those truckers knew that the cost wasn't Pilot's actual cost, but a cost based on an industry standard.
"Plaintiffs continue to contort the facts and law in an effort to justify their request to dig through the interactions with thousands of other customers," the filing states.
Pilot contends that the database contains confidential business information about the firm's dealings with hundreds of trucking firms that have nothing to do with the FST and HB transactions.
In earlier filings the FST and HB attorneys said the database is the key piece of evidence needed to prove that the Pilot rebate scheme went much deeper than has been revealed and totaled some $4 billion.
Pilot, however, charged the truckers "completely mis-characterize" the evidence, which actually supports Pilot's contention.
The rebate scheme already has cost Pilot some $175 million to settle claims from other truckers and the federal government. Ten former Pilot sales staffers have entered guilty pleas to mail and wire fraud charges. Eight more, including the former president, face a 2017 trial on similar charges. They have all pleaded not guilty.
Contact: wfrochejr999@gmail.com

Truckers Say Database Key to $4 Billion Scam

By Walter F. Roche Jr.

Two trucking firms have charged that a database maintained by the country's largest truck stop chain is the key to uncovering the full details of a $4 billion rebate cheating scam.
In a 15-page filing in Franklin County Ohio Circuit Court lawyers for the two trucking firms, FST Express and HB Logistics, say that the database, known as SalesForce, is "the pivotal" issue in detailing how Pilot Travel "pulled off the largest fraud ever perpetrated in the trucking industry."
The filing comes after lawyers for Pilot asked the judge presiding over the case to strike from the record a single page from the disputed database. Pilot also wants the judge to block a motion by the trucking firms to force disclosure of the entire database.
The truckers contend that the full scope of the scheme to cheat truckers out of promised diesel fuel rebates has never been known but it dates back a decade.
The suit in Ohio is one of only two remaining civil suits pending since the rebate scheme became public when federal agents raided Pilot's Knoxville, Tenn. headquarters on April 15, 2013. Since that time 10 former Pilot sales staffers have entered guilty pleas to mail and wire fraud charges. Eight more face a 2017 trial on similar charges. They have all entered not guilty pleas.
In the Ohio case the trucking companies have charged that the scheme was even more lucrative for Pilot than charged by federal agents because Pilot inflated the price it actually had paid for the fuel in the first place.
Pilot has countered claiming the trucking firms knew the so-called base price was actually an industry standard.
In the filing this week the two truckers disputed that claim and said that the SalesForce database would prove that point.
"It (the database) will help plaintiffs refute Pilot's absurd suggestion that the amounts it admits it owes are merely the product of account discrepancies and not fraud," the filing states.
"The SalesForce entries tell the who, what, where, when, why and how of Pilot's long running  $4 billion fraud scheme," the filing charges.
The filing also asks the judge to reject Pilot's request to file yet another objection to the records request.
"Pilot is simply trying to have the last word," it concludes.
Contact: wfrochejr999@gmail.com

Stay Granted in Alabama Pilot Suit

By Walter F. Roche Jr.

An Alabama judge has granted a stay to Pilot Travel and it chief executive James A. Haslam in a longstanding suit in which a trucking firm charges it was cheated out of millions of dollars in promised rebates.
The stay halts most proceeding in the case pending the results of a related appeal in federal court.
But the decision by Mobile County Circuit Court Judge Sarah Hicks Stewart does allow lawyers for Wright Trucking to continue discovery, including depositions of key figures including Haslam.
The owner of the Cleveland Browns, has thus far rebuffed efforts to take testimony under oath about his knowledge of the multi-million dollar rebate cheating scheme.
Haslam, however, has repeatedly denied any knowledge of the rebate fraud, but his company already has paid out some $175 million to settle claims from truckers and to settle a complaint filed by the federal government.
The Alabama suit is one of two remaining legal claims against Pilot. The other, filed by two other trucking firms, is pending in a Franklin County Ohio court. In both the Ohio and Alabama cases, lawyers have initiated attempts to force Haslam to testify.
Stewart denied the stay sought by Brian Mosher, another former Pilot sales staffer, because he failed to perfect his appeal and failed to answer the original complaint.
In the ruling this week Stewart gave Mosher additional time to file an answer.
The two pending suits and a now settled class action suit in Arkansas followed a raid on Pilot's Knoxville, Tenn. headquarters by the FBI. An FBI agent later filed an affidavit in federal court detailing a widespread scheme by Pilot sales staffers to cheat truckers out of promised rebates.
While dozens of trucking firms agreed to a settlement, Wright, FST Express and HB Logistics opted out of the settlement and decided to pursue their claims in state courts.
Ten former Pilot sales staffers already have entered guilty pleas to mail and wire fraud charges and another eight have entered not guilty pleas and face trial in Knoxville, Tenn. next year. A recent effort for a change of venue in those cases was denied.
Contact: wfrochejr999@gmail.com

Ohio Judge Declines to Order Haslam Testimony

By Walter F. Roche Jr.

Concluding his intervention was not necessary, an Ohio judge has declined to issue an order to force Cleveland Browns owner James A. Haslam to testify under oath.
In a three-page decision issued this week, Franklin County Judge David C. Young cited Ohio and Tennessee statutes and court rulings that provide a means for two trucking companies to subpoena Haslam for a sworn deposition.
The two companies, FST Express and HB Logistics, are suing Pilot Travel Centers, the Haslam family owned truck stop firm, charging they were cheated out of millions of dollars in promised rebates on diesel fuel purchases.
In requesting Young to issue a commission to subpoena Haslam, lawyers for the truckers acknowledged that they could petition a Tennessee court directly to issue a subpoena.
Shawn J. Organ, one of the lawyers representing the truckers, said Friday they will now go directly to Tennessee courts to schedule the deposition.
Though he heads the nationwide truck stop chain, Haslam has stated repeatedly that he was unaware of a scheme by Pilot sales staffers to cheat truckers out of promised rebates.
The trucking firms, however, contend they need Haslam's testimony because those involved in the scheme, including former President Mark Hazelwood, reported to Haslam.
"Haslam should be able to shed light on how the fraud was conducted, why Pilot did nothing to stop it until the FBI raided Pilot's headquarters on April 15, 2013 and whether Pilot's top executives turned a blind eye to fraud," lawyers for the trucking firms stated in the petition seeking the subpoena.
Hazelwood is under indictment on mail and wire fraud charges along with seven other former Pilot staffers. They all have entered not guilty pleas. The charges stem from a federal probe of Pilot's rebate practices.
Ten other former Pilot sales staffers already have entered guilty pleas to mail and wire fraud charges and await sentencing in U.S. District Court in Knoxville, Tenn.
Citing rulings from the Ohio Supreme Court and Tennessee laws, Young wrote, "Upon review, court involvement is unnecessary in this issue. For the foregoing reasons plaintiff's motion for the deposition of Jimmy A. Haslam 3d is rendered moot."
FST and HB are two of three trucking firms still pursuing civil claims against Pilot. The third case was filed in Mobile, Ala. by Wright Transportation.
The rebate allegations have proven costly for Pilot, the country's largest truck stop chain. Some $175 million has been paid to settle claims filed by other trucking firms and the federal government.
Contact: wfrochejr999@gmail.com

Pilot Wants Judge to Block Record Requests

By Walter F. Roche Jr.

Pilot Flying J is asking an Ohio judge to block two trucking companies from getting access to thousands of internal documents and a computer database with information on the truck stop firm's other customers.
In a 16-page filing in Franklin County Ohio Common Pleas Court, lawyers for Pilot are charging that the 303 pending discovery requests by FST Express and HB Logistics are unduly burdensome and seek information that will ultimately have no bearing on the pending litigation.
HB and FST are two of the three trucking firms still suing Pilot over charges that the Knoxville based firm cheated them out of millions of dollars in promised rebates on diesel fuel purchases.
In the latest filing lawyers for Pilot stated that an audit showed FST is only owed $11,000 and HB actually owes Pilot over $100,000.
The charges against Pilot stem from a federal probe in which a government agent described a wide ranging scheme by Pilot sales staffers to cheat customers out of promised rebates. Pilot already has paid over $150 million to settle claims from truckers and the federal government over the rebate shaving allegations.
In its motion, Pilot noted that the federal agent's affidavit made no mention of FST or HB.
"Plaintiffs seek to recover a windfall by pursuing manufactured claims of cost fraud against Pilot," the motion states.
Pilot said it already has produced 59 gigabytes or 72,889 pages of documents but it is unwilling to provide records relating to some 5,500 other customers over a nearly 10 year period.
According to the motion, a federal judge in a related case already had rejected the truckers requests for the same information.
As for providing access to its internal database, called SalesForce, Pilot said that would require lengthy review to exclude confidential information.
"Plaintiffs cannot seriously suggest that Pilot simply hand over the entire database replete with confidential information and potentially privileged information for thousands of non-party customers spanning nearly a decade without reviewing it," the filing concludes.
The third pending suit against Pilot over rebate allegations is proceeding in an Alabama court.
Ten former Pilot sales staffers have already entered guilty pleas to mail and wire fraud charges stemming from the rebate fraud probe and eight others have been indicted and are awaiting trial. They have all entered not guilty pleas.
Contact: wfrochejr999@gmail.com

Browns Owner Sells Nantucket Property

By Walter F. Roche Jr.

Cleveland Browns owner James A "Jimmy" Haslam has sold his Nantucket vacation home for $6.7 million, more than $3 million less than the original asking price. In fact with the inclusion of an adjacent parcel in the deal, Haslam is getting $6 million less than his original asking price.
Massachusetts land records show the Haslam property was sold to the Jen Sankaty Lighthouse Trust. Michael Altman and Alexandria Stewart Altman are listed as the trustees. The Altmans reside in Bedford Corners, N.Y.
Haslam, the records show, took back a $5.5 million mortgage providing the financing for the transaction. The property is located at 37 Sankaty Head Road.
The deal also includes a second adjacent parcel for which Haslam was seeking an additional $3 million.
Haslam, who also heads the national truck stop chain, Pilot Flying J, first put the property on the sales block for just under $10 million in 2015. He purchased the property in 2006 for $3.85 million.
Real estate advertisements for the ocean front property show it has six bedrooms and a 2 bed room guest house.
Named "Southern Winds," the home was built after Haslam took ownership.
As listed on Sotheby's in early 2015 here is a description  of the property:

"Southern Winds" is a magnificent, Lyman Perry designed, ocean front estate with panoramic views of the Atlantic, Sesachacha Pond, Sankaty Head Lighthouse, Great Point, Nantucket Sound and town in the distance. With gorgeous custom finish work that is perfect in both design and execution, grand rooms that are magnificent in both scale and proportion, beautiful landscape design and breathtaking views from every room, this property - which includes a six bedroom main residence, two-bedroom guest cottage and garage - is a once-in-a lifetime opportunity for the most discriminating buyer.

Truckers Move to Force Haslam Deposition

By Walter F. Roche Jr.

Two trucking firms say they need Jimmy Haslam's sworn testimony to pursue claims they were cheated by the truck stop company Haslam heads and they will pursue it with or without the assistance of an Ohio court.
In an eight-page filing in Franklin County Ohio Common Pleas Court, lawyers for FST Express and HB Logistics said they would even seek to accommodate Haslam by not scheduling his deposition the week after Haslam's Cleveland Browns face the Pittsburgh Steelers.
"To increase the chances of catching Haslam in a good mood, plaintiffs will try to avoid taking the deposition during the week after the Steelers' game," the motion states.
The suit is one of two remaining against Pilot Flying J stemming from a federal investigation and the indictment of 8 top former Pilot sales executives. Ten others have entered guilty pleas. A filing in federal court in Tennessee by a federal agent describes a widespread scheme by Pilot staffers to cheat truckers out of millions of dollars in promised rebates.
The filing this week leaves it to Franklin County Judge David C. Young to decide whether he wants to issue an order to Tennessee court officials to facilitate a Haslam deposition.
"To be clear: it was not and is not essential that plaintiffs present such a request to obtain Haslam's testimony," the filing states, adding that "the court has the discretion to refrain from becoming involved."
According to the filing, a request for a subpoena can be sent directly  to the Tennessee courts.
The truckers dispute claims filed by Pilot Flying J that Haslam's testimony is unneccessary because he knew nothing about the rebate scheme.
"Haslam should be able to shed light on how the fraud was conducted, why Pilot did nothing to stop it until the FBI raided Pilot's headquarters on April 15, 2013 and whether Pilot's top executives turned a blind eye to fraud," the filing states.
Noting that former Pilot President Mark Hazelwood is among those indicted, the filing states that Hazelwood reported directly to Haslam.
Finally the filing notes that despite claims by Pilot's lawyers that Haslam is too busy running the company to be deposed, Haslam has indicated in an Alabama suit that he would be willing to be deposed.
In addition the filing notes Haslam has found the time to attend to the Cleveland Browns and give media interviews about a coaching change and comments at an NFL owners meetings.
"Unless Haslam's announced willingness to provide deposition testimony was merely a publicity stunt to create the appearance of cooperation, it appears Haslam does not share Pilot's concern that a deposition would pose an undue burden," the filing states.
Contact: wfrochejr999@gmail.com

Pilot Flying J Denies Charges in Ohio Suit

By Walter F. Roche Jr.

Pilot Flying J, the nationwide truck stop firm, says that it owes two trucking firms less than $13,500 in rebates and not the millions the companies are demanding in an Ohio civil suit.
In a 45-page response filed this week in Franklin County Court, lawyers for Pilot also denied that company CEO Jimmy Haslam had any knowledge of a scheme by some Pilot sales executives to cheat truckers out of promised rebates.
The long awaited response comes just after Franklin County Judge David C. Young denied a series of dismissal motions filed by Pilot and some of its former sales executives. Plaintiffs in the suit are FST Express and HB Logistics.
In its response Pilot called the charges, including fraud, unjust enrichment and breach of contract "vague and ambiguous. It is therefore difficult for Pilot to respond meaningfully to many of the allegations in the complaint."
Pilot "specifically denies plaintiffs were the victims of fraud," the filing states.
The suit is one of two remaining civil suits stemming from allegations that Pilot routinely cheated truckers out of promised rebates.
Those allegations surfaced following an FBI raid on Pilot's Knoxville headquarters. In a subsequent court filing an FBI agent, quoting from the transcripts of secretly recorded sales meetings, laid out a scheme to target truckers who were less likely to notice billing discrepancies.
Subsequently 10 former Pilot sales staffers entered guilty pleas and await sentencing. 
In the response filed in the Ohio case, Pilot lawyers said HB Logistics and FST Express were not targets of any such scheme.
"Pilot denies that the FBI affidavit specifically refers to plaintiffs," the filing states.
"Pilot further denies that its CEO Jimmy Haslam had any knowledge of any fraudulent actions," it continues.
The filing states that a subsequent audit found that Pilot owed FST less than $11,000 and HB less than $2,500.
"Pilot remains willing and ready to pay any amount owed plaintiffs," the response states.
Pilot is also being sued in a Mobile, Ala. court on similar allegations brought by Wright Transportation. It previously settled a class action case in Arkansas for $83 million. A $92 million settlement was reached with the federal government.
Contact: wfrochejr999@gmail.com

Default Judgment Issued Against Ex-Pilot Sales Exec

By Walter F. Roche Jr.


An Alabama judge has issued a default judgment against a former Pilot Flying J sales executive in a civil suit against the truck stop chain and its top executives.
A Mobile County Judge Sarah Hicks Stewart today issued the judgment against Brian Mosher, the former national director of sales for Pilot. Mosher already has entered a guilty plea in federal court to charges of conspiracy to commit mail and wire fraud. He is awaiting sentencing.
The ruling was issued in a suit filed by Wright Transportation, an Alabama trucking firm, that has charged that Pilot and certain of its executives, including CEO James A. Haslam, cheated the company out  of millions of dollars in promised diesel fuel  rebates.
The default judgment had been requested by Wright's attorney, Stephen M. Tunstall, who had charged that Mosher had falsely claimed that he was being forced to defend himself in two separate courts for the same charges.
Tunstall charged that Mosher, despite a court order, refused to file a response to the Alabama court action.
"Having failed to answer Wright's complaint, which has been pending for more than eight months, Defendant Mosher is in default," the Wright motion stated.
The Alabama suit is one of two remaining civil actions stemming from a highly publicized fuel rebate scandal. Charges that the company routinely cheated truckers out of promised rebates first surfaced after an FBI raid on the truck stop chain's Knoxville, Tenn. headquarters.
The other remaining suit is pending in Ohio and last week a Franklin County judge denied dismissal motions, which could clear the way for Haslam, owner of the Cleveland Browns, to be forced to testify for the first time about the rebate scandal.
Haslam has not been charged and has repeatedly denied he had any knowledge of the scheme. His deposition is also being sought in the Alabama case.

Ohio Judge Denies Pilot Motions to Dismiss

By Walter F. Roche Jr.

A Franklin County Ohio judge has flatly denied a series of dismissal motions filled in behalf of Pilot Flying J in a suit charging the Tennessee based firm with cheating two trucking firms out of promised rebates.
In a 17-page decision issued today Judge David C. Young said the trucking firms, FST Express and HB Logistics, had presented sufficient evidence to pursue claims that Pilot and two of its former executives engaged in charges ranging from fraudulent inducement to breach of contract and violations of state consumer protection laws.
The decision also denied dismissal motions filed in behalf of former Pilot executives John Spiewak and Arnold Ralenkotter.  Spiewak has entered not guilty pleas to mail and wire fraud charges. Ralenkotter has pleaded guilty and is awaiting sentencing on a charge of conspiracy to commit mail and wire fraud.
Charges against both stem from a federal grand jury probe into allegations that Pilot cheated truckers out of millions of dollars of promised diesel fuel rebates.
Young's ruling is the latest development in remaining civil suits brought against the Knoxville, Tenn. based truck stop giant.
Young's ruling is likely to lead to renewed efforts to depose Pilot's top executive James A. Haslam, who has repeatedly denied any knowledge of the scheme by Pilot sales executives to cheat unsuspecting truckers out of promised rebates.
Haslam, also the owner of the Cleveland Browns, at first resisted efforts to depose him but later said he would agree to questioning if a series of conditions were first met. His testimony is also being sought in a suit pending in Alabama.
"The court finds that the cause of action for fraudulent inducement is properly brought by plaintiffs," Young wrote.
The judge did strike limited language from a section of the complaint alleging unjust enrichment, but all other charges now go forward.
"The court finds that FST has sufficiently alleged a claim of breech of contract," the ruling states, "adding "FST has alleged actual and consequential damages as a result of Pilot's breech."
The ongoing civil litigation stems from charges in federal court documents, that Pilot sales executives routinely cheated truckers out of promised rebates. Subsequently 10 former Pilot sales staffers have entered guilty please to charges including mail and wire fraud.
Pilot also has paid some $175 million to settle related claims from other truckers and the federal government.

Indicted Former Pilot Exec Fights Subpoena

By Walter F. Roche Jr.




A former Pilot Flying J sales executive, who is under federal indictment, is asking an Ohio judge to issue a protective order barring a truck company from taking his deposition.
John Spiewak, who once served as an Ohio regional manager for the Knoxville based truck stop chain, says it would be inefficient for him to be deposed when he already has filed a motion to be dismissed from the pending suit.
Lawyers for FST Express, meanwhile, say that Spiewak's testimony is critical in pursuing the claim that Pilot cheated the transportation firm out of millions of dollars in promised diesel fuel rebates.
The crossfire is the latest development in the remaining civil suits filed against Pilot following disclosure of a federal grand jury probe of Pilot's rebate practices. Another suit is pending in Alabama.
Spiewak is one of eight Pilot executives to be indicted earlier this year on mail and wire fraud charges as a result of that federal probe. Ten other former Pilot officials already have entered guilty pleas to related charges and await sentencing. Spiewak has entered a not guilty plea.
In addition to the claim of inefficiency, Spiewak's lawyers cited a May 4 order in the case, which they claim put the entire case on hold.
FST's lawyers, however, dispute the contention that the order halted all proceedings.
"Spiewak intentionally misled and concealed from FST that Pilot was not using actual cost when calculating cost-plus discounts," the most recent filing states.
"The importance of Defendant Spiewak's deposition can not be understated. He is a critical figure in the fraudulent conduct at the center of this litigation," the FST filing states.
Spiewak's lawyer, however, argued that if his pending dismissal motion were to be granted, there would no longer be any need for his deposition.
Pilot already has paid out some $175 million to settle claims from truckers who claim they were cheated out of promised rebates. That figure includes a $92 million settlement with the federal government.
Contact: wfrochejr999@gmail.com

Pilot Trial Witness List Includes Haslam, Federal Agents

By Walter F. Roche Jr.

The potential witness list in an Ohio suit against Pilot Flying J includes Cleveland Browns owner James A. Haslam 3rd and two federal agents involved in a lengthy criminal probe of the nationwide truck stop firm.
The potential witness list filed late last week in Franklin County Court by attorneys for three trucking firms lists over 90 persons ranging from former Pilot executives who have already entered guilty pleas to unnamed confidential sources cited by federal agents in a filing in U.S. District Court in Knoxville, Tenn.
The filings comes in a civil suit filed by HB Logistics, FST Express and Dick Lavy trucking charging that Pilot cheated them out of millions of dollars in promised rebates and diesel fuel price reductions.
Pilot's lawyers along with co-defendants in the case also have filed potential witness lists including current Pilot employees and outside experts.
The Ohio suit is one of two civil claims currently pending against Pilot. A second is pending in Mobile, Ala., where Wright Transportation has asked a judge to order Haslam,  who heads Pilot, to undergo questioning.
Both actions stem from allegations that Pilot sales executives routinely and systematically cheated truckers out of promised rebates. Those allegations were spelled out in a lengthy affidavit filed in federal court in Knoxville over three years ago.
The affidavit was signed by FBI Agent Robert Root. Root and IRS agent Kevin McCord are both on the trucking firms' potential witness list.
The witness list filing states that it includes "all witnesses who plaintiffs may call as witnesses at trial or hearing in this case."
In addition to former Pilot staffers who have already entered guilty pleas like Arnold Ralenkotter, the list includes several other former employees who were recently indicted. They include former Pilot President Mark Hazelwood, who has entered innocent pleas to wire fraud and witness tampering charges.
Also included is former Pilot Vice President John Freeman who, like Hazelwood, was recently indicted and has entered an innocent plea to mail and wire fraud charges.
Still others listed include CHS1 and CHS2, confidential government informants cited in the Root affidavit.
The rebate fraud charges already have proven costly for Pilot with the combined cost of settling suits by other truckers and the federal government totaling over $175 million.
Attorneys for the trucking companies stated in the filing that they were reserving the right to supplement the witness list at a later date.
Contact:wfrochejr@gmail.com

Haslam Had Direct Involvement, Trucking Firm Charges

By Walter F. Roche Jr.

Evidence uncovered in a federal lawsuit showed Cleveland Browns owner James A. Haslam 3rd's "direct involvement" in targeting an Alabama trucking firm for "large scale pricing fraud," according to a motion filed today in Mobile, Ala.
The motion filed for Wright Transportation of Mobile also charges that Haslam's recent claim that he was willing to be deposed in connection with rebate fraud charges against Pilot Travel Centers was a publicity stunt.
"Haslam continues to dodge and delay as he has for the past three years," the filing states.
The filing, which comes before a scheduled Friday hearing, is the latest development in a handful of remaining lawsuits stemming from a federal probe of charges that the Haslam family owned truck stop chain routinely cheated truckers out of millions of dollars in promised diesel fuel rebates.
Haslam's promise to agree to a deposition came with a series of conditions and the Wright brief charges that those conditions would delay any deposition until late this year or early next year.
Noting that Haslam has never agreed to a specific timetable for a deposition, the filing states Haslam now "apparently intends to run out the clock."
 The motion calls on Mobile Judge Sarah Hicks Stewart to issue a second order calling for Haslam to be questioned under oath within 30 days. An earlier order for a May 11 deposition was temporarily set aside.
Responding to a joint motion filed by Haslam, Pilot and other defendants, Wright charged that during five months of discovery while the case was still in federal court "Wright uncovered Haslam's knowledge and direct involvement with (former Pilot President Mark) Hazelwood in targeting Wright and engaging in large scale pricing fraud involving thousands of transactions and massive losses."
Haslam has repeatedly denied any knowledge of the scheme to cheat on diesel fuel rebates.
Wright argues that it needs to question Haslam to pursue charges already leveled against former President Hazelwood.
"Haslam is the only person Hazelwood reported to," the filing states, noting that trucking executive is just about the only person involved in the case who has not either pleaded guilty to federal charges or been recently  indicted, as Hazelwood has.
Contact:wfrochejr999@gmail.com

Haslam Wants Lengthy Delay in Any Deposition

By Walter F. Roche Jr.

Lawyers for Cleveland Browns owner James A. Haslam 3rd claim he will agree to a limited deposition but the conditions attached to the offer would delay any questioning for months.
In a court filing Friday and in a letter to the attorney representing an Alabama trucking firm, Haslam's lawyer said his client would agree to be deposed but only after a related appeal pending in federal court is resolved.
The action comes in a series of civil suits filed by truckers who have charged that the Haslam family owned truck stop firm known as Pilot Flying J, secretly reduced promised rebates.
That federal case is not even scheduled for oral arguments before a panel of federal judges until the week of  July 11. In addition Haslam's offer would delay the deposition until at least 45 days after the federal court actually issues a decision in that case.
The offer comes as Haslam is facing demands that he appear to answer questions under oath in suits filed by four trucking companies in Ohio and Alabama.
In the letter to Stephen Tunstall, the attorney for Wright Transportation, Washington, D.C. attorney Stephen D. Brody said several other conditions would have to met before Haslam would undergo questioning including a seven-hour one day limit on questioning and allowing only one attorney to represent all four trucking companies.
"Mr. Haslam does not believe a deposition is warranted in either case," Brody wrote.
"We are disappointed in this gamesmanship, but eager to put it behind us," Brody added.
The offer comes as courts in Alabama and Ohio have been asked to require his testimony in the suits filed by trucking companies who have charged Haslam's Pilot Travel Centers has cheated them out of millions of dollars in promised diesel fuel rebates.
In the Alabama case Haslam already had been ordered to testify but his lawyers gained a postponement until after a hearing scheduled later this month.
In addition to Wright, claims have been filed in an Ohio case for FST Express, HB Logistics and Dick Lavy Trucking.
Pilot already has paid some $175 million to settle claims by other trucking companies and the federal government.

Judge Strikes Indictments From Pilot Civil Trial

By Walter F. Roche Jr.

An Ohio judge has ordered that a filing detailing the indictment of former Pilot Travel executives in federal court in Tennessee be stricken from the record of an ongoing civil case against the truck stop chain.
In a brief ruling issued Thursday, Franklin County Judge David C. Young granted the motion filed by Pilot to have notice of the recent indictments stripped from the record. The action comes in a suit brought by three trucking firms that have charged Pilot with cheating them out of promised rebates.
Lawyers for the trucking firms had filed notice of the recent indictment of eight former Pilot sales staffers by a federal grand jury in Knoxville, Tenn.
Pilot's lawyers had argued that the notice was improper and not germane to the civil litigation. Lawyers for FST Express, Dick Lavy Trucking and HB Logistics argued that the indictments demonstrated Pilot's improper method of handling rebates.
"The court finds Pilot''s arguments persuasive," Young wrote. "There is no basis in the civil rules to support this finding."
He wrote that the notice "provides nothing that has not already been complained of in the complaint which could be brought out in testimony if relevant and admissable."
Young also noted that he will hold off ruling on other pending motions in the case including a request to force Pilot owner James A. Haslam 3rd to testify in a deposition, until he rules on a pending motion to dismiss the suit.
The three firms have charged that Pilot routinely cheated them out of promised rebates on diesel fuel purchases.
The suits were triggered by the same federal probe that produced the recent indictments.

Truckers Seek Pilot Fraud "Paper Trail"

By Walter F. Roche Jr.

Ohio trucking companies want a judge to order Pilot Flying J to turn over computer files they claim will provide a "paper trail" of fraudulent transactions used to cheat them out of millions of dollars in promised diesel fuel rebates.
In a motion filed this week in Franklin County court, lawyers for the three firms are asking the judge to compel Pilot to turn over the records of a computer software program called "SalesForce," which provides details on the handling of Pilot's rebates.
"SalesForce entries expressly detail the fraud scheme," the motion states.
The motion to compel is one of the latest developments in the handful of remaining civil cases against the truck stop firm stemming from a federal investigation that already has produced guilty pleas from 10 former Pilot sales staffers.
Pilot, meanwhile, is asking the same Ohio judge to deny another motion by the trucking firms to depose Pilot's top executive James A. Haslam 3rd.
In the motion to force the disclosure of computer records, the trucking firms, HB Logistics, FST Express and Dick Lavy Trucking, argue that the data will show the specific involvement of two former Pilot executives, John Freeman and John Spiewak, who dealt with their accounts.
"Sales Force contains a paper trail of the fraudulent statements Pilot employees made to customers," the motion states.
"With so many Pilot employees telling so many lies to so many customers, Pilot needed an up-to-date tool to track the lies," the motion adds.
Thus far, according to court documents, Pilot has refused to provide the data contending that it contains information not relevant to the three companies and that compliance would be overly burdensome.
The truckers contend that the damages suffered from the fraud claims alone total an estimated $1.9 million.
In addition to the Ohio cases, Pilot is facing a suit in Alabama filed by Wright Transportation. In that case a judge in Mobile is scheduled to hear arguments on May 13 on Pilot motions to end the suit.
The judge, however, has denied a motion by Haslam's attorneys to rescind an order that he undergo a deposition.
Contact:wfrochejr999@gmail.com

Browns' Owner Fights Deposition in Ohio Rebate Suits

By Walter F. Roche Jr.

Having won a temporary reprieve from a deposition ordered by an Alabama judge, Cleveland Browns owner James A. Haslam 3rd is asking an Ohio judge to deny a motion to force his testimony in a separate suit brought by three other trucking companies.
Lawyers for Haslam this week filed a motion to block a deposition requested by three trucking firms that have charged that Haslam's Pilot Flying J truck stop firm routinely cheated them out of promised rebates.
In the suit in Franklin County Ohio the truckers last week said Haslam's testimony was essential and they asked for an order that would require Haslam's appearance at a deposition on May 11 in Knoxville, Tenn.
Haslam's lawyers responded by arguing that Haslam had no personal knowledge of the alleged rebate fraud scheme and that requiring his testimony would be unduly burdensome.
Just last week an Alabama judge rejected an appeal by Haslam of an earlier order requiring his appearance at the May 11 deposition. The judge did, however, agree to hear additional arguments on May 13 by Pilot's lawyers in the suit brought by Wright Transportation and to put off the scheduled deposition temporarily.
In the Ohio case brought by HB Logistics, FST Express and Dick Lavy Trucking, Haslam's lawyers stated that the May 11 deposition "has been deferred by the court in Alabama and it is unclear when or if that deposition will be rescheduled."
Haslam, the motion continues, "had no involvement with plaintiffs' accounts and he is a third party to the lawsuit."
Haslam's lawyers also argued that any deposition of him would be premature because there are pending motions before the court that could end the suit.
"Plaintiffs should not be permitted to depose Pilot's most senior executive when it is clear he does not possess unique firsthand knowledge regarding plaintiff's allegations," the motion states.
The deposition battle is the latest development in a handful of remaining civil suits stemming from charges that Pilot sales executives oversaw a longtime scheme to cheat truckers out of promised rebates.
The allegations already have cost Pilot more than $175 million to settle claims by other truckers and the federal government.
Ten former Pilot executives already have entered guilty pleas to mail and wire fraud charges and more than a half dozen others, including former President Mark Hazelwood, have been indicted and await trial.

Haslam Still Must Testify on Rebates

By Walter F. Roche Jr.

Cleveland Browns owner James A. Haslam 3rd still must undergo sworn questioning about his truck stop firm's rebate practices and the questions may come from four truckers, not just one.
Alabama Judge Sarah Hicks Stewart Friday denied Haslam's request to halt a scheduled May deposition on charges from Wright Transportation that Pilot Flying J routinely cheated truckers out of promised rebates. Meanwhile an Ohio judge is considering a motion that would allow lawyers for three other trucking firms to question Haslam at the same time.
The action comes in the four remaining civil cases filed against Pilot by trucking firms who opted out of a class action settlement with the truck stop chain with an $84 million price tag.
The suits stem from the disclosure of a federal grand jury investigation of charges that Pilot sales executives routinely shaved millions of dollars in rebates promised to high volume diesel fuel purchasers.
Haslam, who has repeatedly denied any knowledge of the rebate scheme, had sought to have the May deposition called off, contending his testimony was not required.
In Franklin County Ohio, FST Express, HB Logistics and Dick Lavy Trucking have asked a judge to order Haslam's testimony on their parallel claims of rebate fraud. The motion was filed this week.
Ten former Pilot sales staffers already have entered guilty pleas to mail and wire fraud charges stemming from the federal probe. Another eight were indicted earlier this year and await trial. They have all entered not guilty pleas.
In addition to the $84 million paid to settle the class action suit, Pilot has paid $92 million to settle related charges with the federal government.

Three More Truckers Want in on Haslam Deposition

By Walter F. Roche Jr.

Lawyers for three trucking firms, who have charged Pilot Flying J with cheating on promised rebates, are asking an Ohio judge to let them join in on a deposition of Pilot chief and Cleveland Browns owner James A. Haslam 3rd.
In a motion filed this week in Franklin County Court in Ohio, the three trucking firms are seeking to participate in a Haslam deposition scheduled for May 11 in Knoxville, Tenn,
Citing an affidavit filed in U.S. District Court in Knoxville, lawyers for FST Express, HB Logistics and Dick Lavy Trucking state that Haslam "has information relevant to plaintiffs' claims."
The motion comes in one of the few remaining civil suits stemming from allegations that Pilot routinely cheated on rebates promised to truckers. The allegations already have cost Pilot $175 million to settle claims from other truckers and the federal government.
In the eight-page motion, FST lawyers cite the transcripts of secretly recorded Pilot sales meetings in which sales executives discuss Haslam's awareness of the rebate skimming scheme.
The transcript includes a conversation in which then Pilot Vice President John Freeman states, "Oh he (Haslam) knew it. I called Jimmy and told him I got busted at Western Express."
Freeman was referring to a case in which a Nashville, Tenn. firm learned that it had been cheated on promised rebates.
The action in the Ohio case comes as Haslam already has been ordered to testify in a parallel case brought by an Alabama trucking firm.
"Haslam's deposition is already scheduled to take place that day (May 11) in Knoxville pursuant to an order issued by an Alabama court in a similar action," the motion states.
Lawyers for Haslam are fighting that order and have asked the Alabama judge to reverse the decision.
Wright's attorneys have responded by charging that Haslam has been dodging a deposition and that his testimony is critical in establishing a case against Hazelwood, the former president who reported to Haslam. Wright also cites the Freeman comments about Haslam's involvement in the federal affidavit,
Haslam has repeatedly insisted that he was unaware of the scheme to cheat on promised rebates.
Ten former Pilot sales staffers already have entered guilty pleas to mail and wire fraud charges and await sentencing. An additional eight former employees, including former President Mark Hazelwood, have been indicted and have entered not guilty pleas.
Contact:wfrochejr999@gmail.com

Haslam Deposition Ordered in Rebate Case

By Walter F. Roche Jr.

An Alabama judge has ordered Pilot Flying J President James A. Haslam 3rd to be deposed in a suit brought by a trucking company charging that the truck stop firm cheated on promised rebates.
The deposition order, which Haslam already is appealing, comes in one of four remaining civil suits against Pilot stemming from a federal investigation that has already brought guilty pleas from 10 former Pilot sales staffers. An additional eight former Pilot officials, including President Mark Hazelwood, were recently indicted.
Under the order by Judge Sarah Hicks Stewart Haslam, who is also the owner of the Cleveland Browns, will be deposed in Knoxville, Tenn. on May 11 by lawyers for Wright Transportation.
Lawyers for Haslam have filed a motion asking the judge to reconsider her order.
In all four remaining civil suits, trucking firms are charging that Pilot secretly reduced promised rebates targeting firms that were unlikely to notice the discrepancies.
The other three suits are being heard in Franklin County Ohio.
In those cases lawyers for Haslam and Pilot are fighting to have notice of the recent indictments eliminated from the court record.
A notice of the indictments was filed recently by lawyers for FST Express.
In the Ohio cases, the trucking companies contend that Pilot not only secretly reduced rebates but also gave truckers false and misleading information about the cost Pilot actually paid to buy the diesel fuel in the first place.
In the motion to strike the indictments from the record, Pilot lawyers have argued that the information is not relevant to the civil litigation.
Pilot already has paid more than $175 million to settle suits filed by trucking companies and the federal government.

Haslam Loan Paid Four Years Later

By Walter F. Roche Jr.

Several years after it first came due, the wife of a well-connected Knoxville developer has paid off a $1 million loan from the father of Tennessee Gov. Bill Haslam.
Records at the Nantucket Registry of Deeds in Massachusetts show the Haslam loan to Ann Furrow, wife of Samuel F.  Furrow of Knoxville, was just recorded as satisfied last month.
The elder Haslam loaned the $1 million to Ann Furrow in 2011 during the same time period Sam Furrow and a group of investors were trying to sell an office building to the Pellissippi State Community College at a substantial profit.
The Furrow group purchased the Strawberry Plains building for $5 million and ultimately sold it the community college for $10 million in 2012.
The notice of satisfaction of the one-year loan comes some four years after it was originally due in June of 2012. Records at the Nantucket deeds office show the only recorded activity on the loan in the interim was a June 4, 2013 agreement by the elder Haslam to subordinate his interest in the property to a bank loan.
As first reported by the Tennessean, the purchase of the office building came despite the need for extensive repairs estimated at as much as $16.6 million.
In response to questions posed at the time, the governor, through a spokeswoman, said he was unaware of his father's loan to Ann Furrow. The collateral on the loan was a Nantucket property at 112 Baxter Road owned by Ann Furrow. Samuel Furrow transferred his interest in the property to his wife prior to the Haslam loan.
Dave Smith, spokesman for Gov. Haslam, said Monday the governor was not aware that the loan had been paid off.
Samuel Furrow, when asked about the sale to Pellissippi, described it as "clean as a whistle."
The loan was not the only Haslam interest on the Massachusetts resort island. Cleveland Browns owner James A. Haslam 3rd, brother of the Tennessee governor, owns an oceanside property on the island which has been up for sale for over a year. The current asking price for the home at 37 Sankaty Head Road is $9.99 million, according to real estate listings.

Haslam Deposition Sought In Pilot Rebate Case

By Walter F. Roche Jr.


An Alabama trucking firm is seeking court approval to force Cleveland Browns owner James A. Haslam to undergo a sworn deposition to obtain "critical" information in a suit charging rebate fraud.
In a motion filed in circuit court in Mobile, Ala., Wright has charged Haslam has "played games in an effort to avoid" being deposed.
Wright is one of four trucking firms still pursuing rebate fraud claims against Pilot Flying J, the family owned company that Haslam heads.
Citing an affidavit filed by a federal agent investigating Pilot's handling of promised rebates, the motion filed by Alabama attorney Stephen M. Tunstall charges that Haslam had knowledge of and participated in a scheme to cheat truckers out of millions of dollars in promised rebates.
The filing disputes claims by Haslam's lawyers that the Alabama court lacks the authority to force Haslam's testimony.
While avoiding court testimony, Haslam has repeatedly asserted publicly that he had no knowledge of the scheme to cheat truckers out of rebates.
In a recent filing in the Alabama litigation, Pilot's lawyers have asserted that "Mr. Haslam is not subject to jurisdiction in Alabama" on any of the allegations raised in the Wright suit.
Citing actions in a parallel federal court suit that was later dismissed, Wright charged that Haslam was using the same arguments that were rejected in the federal suit.
"Haslam's deposition is critical," the filing states.
In a related ruling in the same suit Judge Sarah Hicks Stewart has cleared the way for Wright to begin gathering evidence against former Pilot President Mark Hazelwood.
Hazelwood was one of several top Pilot officials to be indicted by a federal grand jury in Knoxville earlier this year.
Charged with conspiracy to commit mail fraud and witness tampering, Hazelwood and the seven other recently charged defendants have entered not guilty pleas.
Ten other former Pilot employees, however, have entered guilty pleas to mail and wire fraud charges and await sentencing.
Three other trucking firms have filed suit in state court in Ohio. Lawyers for the truckers recently filed notice that they intend to call Haslam as a witness in the upcoming trial.
Pilot already has paid some $175 million to settle suits filed by truckers and the federal government stemming from the rebate fraud allegations.
Contact: wfrochejr999@gmail.com

Haslam Named as Witness in Rebate Suit

By Walter F. Roche Jr.

Cleveland Browns owner James A. Haslam 3rd has been named as a witness in a civil Ohio case in which his trucking company has been charged with cheating transportation firms out of promised rebates.
The witness lists, including Haslam, were filed this week in Franklin County Ohio where FST Express and two other firms have filed suit seeking recovery of lost rebates and other damages.
The witness lists include several former Pilot employees who already have entered guilty pleas to charges that they defrauded truckers out of promised rebates.
In addition to those who have entered guilty pleas and await sentencing, the lists include several former Pilot executives who were recently indicted in a continuing federal probe of the rebate fraud. That includes former Pilot President Mark Hazelwood who was indicted on charges of wire fraud and witness tampering.
The witness lists were filed as the anniversary date of a federal raid on Pilot Flying J's Knoxville is fast approaching. The widely publicized raid by FBI and IRS agents took place on April 15, 2013.
FST Express is one of three companies that filed suit against Pilot in Ohio after rejecting a proposed civil class settlement in federal court in Arkansas.
Those who have entered guilty pleas and are on the witness lists include Janet Welch, Arnold Ralenkotter and Brian Mosher.
In addition to Hazelwood the lists include recently indicted former Pilot sales vice president John Freeman.
Also included on the witness lists are two FBI informants, identified only as CHS-1 and CHS-2, and  an FBI agent, Robert Root, who was  involved in the lengthy investigation of the nation's largest truck stop chain.
It was a lengthy affidavit by Root filed in U.S. District Court in Knoxville that provided the first detailed public disclosure of the rebate fraud charges.
Ten former Pilot employees have entered guilty pleas and await sentencing. The newly indicted former employees recently had their cases delayed for some 14 months.
Haslam, whose brother Bill is the governor of Tennessee, has repeatedly denied any knowledge of the scheme to cheat truckers out of promised rebates. Secretly recorded conversations of Pilot's former sales executives include statements asserting that Haslam was present at meetings where the scheme was discussed.
The allegations of rebate fraud already have proven costly for the Haslam family held company. The class action settlement had an $84 million price tag and a subsequent settlement with the federal government cost the Knoxville firm $92 million.
Contact:wfrochejr999@gmail.com

Pilot Criminal Trials Delayed 18 Months

By Walter F. Roche Jr.

A federal magistrate judge has agreed to delay the trials of eight former Pilot Travel executives for 18 months due to the complexity of the case.
U.S. Magistrate Bruce Guyton Tuesday set an Oct. 24, 2017 date for the former Pilot employees including its one time president and a top sales vice president.
Guyton agreed to the delay at the request of lawyers for the eight defendants who were indicted last month following a multi-year investigation. The decision followed a status hearing in U.S. District Court in Knoxville, Tenn.
The indictments stem from a probe that first became public on April 15, 2013 when federal agents raided the truck stop chain's Knoxville headquarters.
 Subsequently 10 Pilot executives and sales employees entered guilty pleas to mail and wire fraud charges related to a widespread scheme to cheat unsuspecting truckers out of promised diesel fuel rebates.
Those charged last month include former Pilot President Mark Hazelwood and Vice President John Freeman.
Not charged was the company's top executive James A. Haslam, owner of the Cleveland Browns. Haslam, brother of Tennessee Governor William Haslam, has denied any knowledge of the rebate skimming scheme.
Although it has settled civil suits with dozens of trucking firms at a cost of $84 million, Pilot is still facing suits in Alabama and Ohio filed by truckers who refused to accept a court approved settlement.
Pilot also paid $92 million to settle claims with the federal government.
Still other suits have been filed against Pilot in Florida and Tennessee recently charging that the company routinely placed excessive holds on trucking company credit cards.

Indictment Shows Emails Detailed Pilot Rebate Fraud

By Walter F. Roche Jr.

First it was the transcripts of secretly taped sales meetings, but now federal prosecutors have provided new evidence of massive rebate fraud in a series of emails sent by sales executives of Pilot Travel, the nation's largest truck stop firm.
In a 58-page 14-count indictment made public Tuesday, prosecutors detailed how those executives, including then President Mark Hazelwood and Vice President John Freeman systematically lulled unsuspecting truck operators and reduced their promised rebates by millions of dollars.
The indictment charges the Pilot sales staff with "lulling and attempting to lull targeted trucking companies into believing that Pilot was honestly and accurately applying" promised discounts.
And, the indictment charges, the goals were simple: increase market share and profits along with commissions to those in on the scheme.
"Maybe we just need a rebate Queen," one Pilot sales executive conjectured during an exchange about who else in the company should be let in on the scam.
In another exchange Arnold Ralenkotter heaped praise on a sales staffer for her recent rebate shaving efforts.
"Good initiative. That's what I like to see," Ralenkotter wrote.
"I've been doing it a lot more and loving it," the staffer, Karen Mann, responded. "Thanks Arnie."
"Grab that bull by the horns," Ralenkotter responded.
Ralenkotter is one of 10 former Pilot staffers who has already entered a guilty plea.
The indictment Tuesday named eight more,  including Hazelwood, who now face charges of conspiracy to commit mail and wire fraud.
Hazelwood also faces witness tampering charges. The indictment charges that Hazelwood tried to influence his former administrative assistant who was being questioned about his knowledge of the fraud.
 Freeman, the former Pilot vice president of sales, sent an email in which he boasted about how badly one trucker was fooled.
"He's crazy and thinks he's getting  deal and he's not," Freeman wrote. "He's not getting what he thinks."
The indictment also repeats excerpts from the secretly recorded sales meetings held in November 2012 at Freeman's lakeside home.
"We're playing f**kin poker with funny money," Freeman said according to the indictment.
Indicted along with Freeman and Hazelwood were Scott Wombold, Vicki Borden, John Spiewak, Katy Bibbee, Heather Jones and Karen Mann.
Wombold is also charged with lying to a federal agent when he stated that the rebate scheme was not discussed at sales meetings.
Specific victims cited in the indictment include Queen Transportation of North Carolina, BP Express in Tennessee, Koleasco in Michigan and P & I in Ohio.
When officials at Tennessee's Smith Transportation and other companies figured out they weren't getting promised rebates Pilot staffers cited computer glitches and "inadvertent changes," according to the indictment.
The emails cited in the indictment contained detailed information showing what customers should have received compared with the "savings" generated by cutting the promised rebates.
The new wave of indictments is but the latest blow to Pilot since the rebate fraud first became public in April of 2013. The company has paid $176 million to settle claims by truckers and the federal government.
Pilot issued a statement stating that they were disappointed and saddened by the developments and would continue to cooperate in the investigation.
Not named or even referenced in the indictment was Pilot's top executive and owner James A. Haslam, who has consistently denied any knowledge of the rebate fraud.
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Eight More Pilot Employees Indicted in Rebate Fraud

By Walter F. Roche Jr.

A federal grand jury has indicted eight former Pilot Travel employees, including the former president and the top sales executive, on mail and wire fraud charges stemming from rebate fraud allegations.
The indictments bring to 18 the number of one time Pilot employees to be charged in a scheme to cheat truckers out of millions of dollars in promised rebates.
The indictment dated Feb. 3, but not released till Tuesday, follows a three year probe of the largest truck stop firm in the country.
Not indicted was company president James A. Haslam, also the owner of the Cleveland Browns. Haslam, brother of Tennessee Gov. William Haslam, has repeatedly denied any knowledge of the scheme.
The probe became public on April 15, 2013 when FBI agents raided Pilot's Knoxville headquarters.
Those indicted were former President Mark Hazelwood, Vice President John Freeman, Vicki Borden, John Spiewak, Katy Bibbe, Heather Jones and Karen Mann.
Hazelwood was charged with conspiracy to commit mail and wire fraud and witness tampering. All were charged with mail  and wire fraud. Hazelwood was arraigned today in U.S. District Court in Knoxville, TN. and entered a not guilty plea.
The remaining defendants were expected to appear and enter not guilty pleas later in the day.
In an affidavit filed in 2013 in U.S. District Court in Knoxville, an FBI agent provided a detailed description of the rebate fraud scheme, including secretly taped sales meetings in which Freeman and Hazelwood played prominent roles.
The affidavit, including transcripts of the sales meetings, was filed just days after the April 15 raid.
Ten other former Pilot employees have been charged and entered guilty pleas to similar charges and they await sentencing.
The rebate charges have already proven costly to Pilot. The company paid $84 million to settle a class action filed in Arkansas and $92 million to settle with the federal government.
Civil suits against the chain are still pending in Alabama and Ohio.
Pilot issued a statement stating they were "disappointed and saddened by today's events," but added that policies had been put in place to ensure it won't be repeated.
"The company has cooperated with the investigation since it's beginning and will continue to do do," the company said in its statement.

Judge Denies Move to Block Pilot Travel's Lawyers

By Walter F. Roche Jr.

An Ohio judge has rejected an attempt by trucking firms to bar Pilot Travel from utilizing a New York law firm to defend itself against rebate fraud charges.
In a two-page order issued Thursday Franklin County Common Pleas Court Judge David C. Young ruled that the White and Case law firm can represent Pilot in the ongoing litigation.
The ruling comes in a suit filed in behalf of FST Express and HB Logistics, two firms that charge that Pilot cheated them out of promised fuel rebates.
The suit is one of only two still pending against Pilot following an FBI raid on its headquarters on April 15, 2013.
FST and HB had argued that White and Case lawyers should not be allowed to represent Pilot because the firm only disclosed information at the last minute on corporate details which made it impossible for the truckers to continue to pursue their claims in federal court.
Pilot, however, insisted that it disclosed the new information as soon as company lawyers became aware of it. The company also noted that White and Case had extensive knowledge of the issues in the suit.
Without repeating the details of the opposing positions, Young said he found the Pilot arguments "persuasive," adding that he did not see the need for a hearing on the matter.
In the other remaining rebate suit Wright Transportation is suing Pilot in an Alabama court.
The rebate fraud allegations already have proven costly for Pilot, the nation's largest truck stop firm.
The company paid $84 million to settle a class action suit in Arkansas and it paid $92 million to settle a case with the federal government.
An affidavit filed in federal court in Tennessee shortly after the 2013 raid, detailed a longstanding scheme in which Pilot sales executives secretly reduced rebates promised to truckers. The filing included transcripts of Pilot sales meetings which were secretly recorded by an informant.
Ten former Pilot officials have entered guilty pleas to mail and wire fraud charges in connection with the rebate fraud charges. They have not yet been sentenced.
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Pilot Appeals Ruling in Rebate Case

By Walter F. Roche Jr.

Pilot Flying J and its chief executive are moving on two fronts to block a suit in Alabama state courts which charges the company with cheating an Alabama trucking firm out of promised rebates.
Lawyers for Pilot and James Haslam, the truck stop chain's top executive and Cleveland Browns' owner, filed an appeal of a federal court ruling and asked a Mobile County court to either dismiss or stay action on the suit filed by Wright Transportation.
The Wright case is one of a handful remaining following disclosure of a federal probe of allegations that Pilot secretly and systematically reduced rebates promised to purchasers of the chain's diesel fuel.
In the appeal filed with the 11th Circuit Court of appeals, Pilot asked that the Oct. 25, 2015 decision of U.S. District Judge William H. Steele be reversed. Steele dismissed the Wright suit, leaving the trucker free to pursue the same claims in state courts.
The appeal filed jointly in behalf of Pilot, Haslam and former Pilot sales executive John Freeman, contends that under the Class Action Fairness Act, Steele was required to maintain jurisdiction over the case.
"Once original jurisdiction was conferred, it could not be divested by subsequent events," the 42-page brief states.
Freeman was featured prominently in secretly recorded Pilot sales meetings in which the rebate skimming scheme was detailed. Transcripts of those meetings were filed in U.S. District Court in Tennessee. Ten former Pilot executives have entered guilty pleas to charges stemming from the rebate probe. Freeman has not been charged.
Wright had concluded that he did have the discretion to dismiss the case. He noted that the case no longer had class action status and that several of Wright's claims, including racketeering charges, had already been dismissed.
Pilot, however, argued that Wright should not be allowed to re-litigate the case in state court after it had proceeded in federal court for some two years.
Citing multiple depositions and discovery requests, the motion states that Pilot had also provided Wright more than 27 gigabytes of data in the federal litigation.
"The district court erred because original jurisdiction under CAFA extended to the entire law suit - including each of the asserted claims - at the time Wright filed the suit, "the appeal states.
Wright, the filing concludes, "should not be allowed to force defendants/appellants to litigate this case for two years in federal court and then, near the end of substantial discovery, start over in state court."
In the filing in Mobile County court, Pilot asked that the state suit be dismissed under the provisions of a state law that protects parties from facing litigation on the same issues in state and federal courts.
Meanwhile, court records in Ohio show that one of four remaining suits against Pilot has been settled. A notice of voluntary dismissal with prejudice was filed by attorneys for Dick Lavy Trucking. Also settled was a suit filed in Illinois against Pilot by JF Freight
Still alive are suits against Pilot in Franklin County Ohio court by FST Express and HB Logistics. HB's claims include claims by a third firm, McGriff Transportation, which assigned its rights to HB.
The rebate allegations have cost Pilot some $176 million. The company paid $84 million to settle a class action suit in Arkansas and paid $92 million to settle civil charges with the federal government.
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