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Haslam-owned truck-stop chain to pay $92M fine

Published on NewsOK Modified: July 14, 2014 at 5:09 pm •  Published: July 14, 2014
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NASHVILLE, Tenn. (AP) — The truck-stop company owned by Cleveland Browns owner Jimmy Haslam and Tennessee Gov. Bill Haslam has agreed to pay a $92 million penalty for cheating customers out of promised rebates and discounts, authorities announced Monday.

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

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

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

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

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

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

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