Pilot Gets 2nd Environmental Citation Under Haslam

By Walter F. Roche Jr.

Tennessee environmental officials have issued a violation notice for a Pilot Flying J facility for only the second time since Gov. Bill Haslam, whose family owns the truck stop firm, took office in early 2011.
The notice along with a $3,200 fine was issued May 10 for a Pilot Flying J. facility in Greeneville.
According to the notice issued by the Tennessee Department of Environment and Conservation the violation was discovered during an inspection on Nov. 25, 2016 of the Greene County facility.
The inspection showed piping for an underground fuel storage tank failed to include an automatic leak detection device. Also missing from the truck stop at 11190 Baileyton Rd. in Greenevile was a required shear valve anchoring device.
The original 10-page complaint against Pilot was issued in the name of TDEC Commissioner and Haslam appointee Robert J. Martineau.
According to TDEC records the last time a citation was issued against the Knoxville, Tenn. truck stop firm was on Nov. 25, 2013 for a facility in Pioneer, Tenn. The company was fined $2,000 for failure to have required overfill protection.
 The next oldest citation came on Nov. 8, 2010, about two months before Haslam took office. In fact 10 violation notices were issued against Pilot in 2010 alone.
TDEC records show Pilot had corrected the recent deficiencies at the Greeneville station by Dec. 7 of last year.
Asked about the citation and whether Pilot might have received favorable treatment the company issued a statement indicating that the long gap in citations was due to the company's diligence.

"Pilot Flying J fuel tanks are inspected regularly nationwide. The company works hard to ensure that our tanks are always in compliance. When that occurs, we address the issue promptly and thoroughly," the company statement said.

The violation notice issue in November of 2010 was for a Pilot facility in Maryville, Blount County. The firm was fined $3,500. 

Pilot is headed by James A. Haslam, the brother of Tennessee Governor Bill Haslam. Bill Haslam, a former Pilot executive, still has an ownership interest in the company. 

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Another Pilot Travel Rebate Suit Settled

By Walter F. Roche Jr.

One of only two remaining civil suits against truck stop giant Pilot Flying J,  stemming from a rebate skimming scandal has been settled, but the details are not being made public.
Notice of the dismissal with prejudice was filed by lawyers for HB Logistics in Franklin County Ohio Circuit Court late last week.
The dismissal was the second within a matter of days. A companion suit filed against Pilot by FST Express was also dismissed in the same court.
That leaves only one remaining civil suit against Pilot stemming from allegations that Pilot sales executives deliberately cheated truckers out of promised rebates on diesel fuel purchases.
Settlements with other truckers and the federal government have cost the Knoxville, Tenn. based firm more than $175 million, exclusive of the two recent cases.
Pilot chief executive James A. Haslam was deposed during the litigation, but the testimony of the Cleveland Browns owner was sealed.
Trouble for Pilot became public on tax day in 2013 when IRS and FBI agents conducted a raid on the company offices, seizing thousands of documents.
An affidavit later filed in U.S. District Court in Knoxville detailed secretly taped meetings of Pilot sales executives discussing how they targeted less sophisticated truckers who they thought would not notice their rebates were being shaved.
The sole remaining suit was filed by Wright Transportation, an Alabama trucking company. That suit is pending in federal court in Alabama.
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Pilot Rebate Civil Suit Settled

By Walter F. Roche Jr.

A settlement has been reached in one of the three remaining civil lawsuits stemming from charges that Pilot Travel cheated truckers out of millions of dollars in promised diesel fuel rebates.
A notice of voluntary dismissal of a suit brought against Pilot, the national truck stop chain, by FST Express was filed today in Franklin County Circuit Court in Ohio. Details of the settlement were not disclosed.
The dismissal filing notes that a similar suit filed by HB Logistics remains to be litigated.
Pilot still faces one other suit now pending in federal court in Alabama. That action was brought by Wright Transportation of Mobile and a scheduling conference is slated for later this week.
The settlement of the of the FST suit comes after Pilot reached settlement of a class action suit filed in federal court in Arkansas and a separate settlement with the U.S. Justice Department. The price tag of those two settlements topped $175 million.
Those followed a raid on Pilot's Knoxville, Tenn. headquarters by federal agents on April 15, 2013.
Ten former Pilot executives have entered guilty pleas to charges they participated in a scheme to cheat truckers out of promised rebates. Eight other Pilot executives have entered not guilty pleas and are scheduled for trial in September.
According to an FBI affidavit filed in U.S. District Court in Knoxville, Tenn. Pilot sales executives systematically reduced the rebates promised to truckers who they thought would not notice.
In the FST and HB Logistics case, Pilot chief executive James Haslam was forced to undergo a deposition, but the session was held behind closed doors and the transcript was sealed at Cleveland Browns owner's insistence.
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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.
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