Wednesday, December 28, 2016

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.
Contact: wfrochejr999@ gmail.com

Friday, December 16, 2016

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.
Contact: wfrochejr999@gmail.com

Tuesday, December 13, 2016

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.
Contact:wfrochejr999@gmail.com

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




Friday, December 9, 2016

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