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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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.
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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.
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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.
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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.