Tuesday, March 8, 2016
Pilot Criminal Trials Delayed for 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.
Wednesday, February 11, 2015
Judge Rules Pilot Racketeering Charges Can Go Forward
By Walter F. Roche Jr.
In a key decision a federal judge has ruled that trucking companies can continue their claim that Pilot Travel Centers engaged in racketeering, fraud and conspiracy when it secretly reduced millions of dollars in promised diesel fuel rebates.
In a nearly 80-page decision issued in Kentucky, District Judge Amul Thapar also ruled that the companies can continue to pursue some, but not all claims against current and former Pilot employees, including its top executive and Cleveland Browns owner, James A. Haslam.
In the lengthy decision Thapar found that two New Jersey companies, National Retail Transportation and Keystone Freight, had presented sufficient evidence to go forward with claims that Pilot had engaged in racketeering, violations of both federal and New Jersey law.
Citing the allegations by the two firms, Thapar wrote that they "are sufficient to show that Pilot defendants and Propeller (an affiliated firm) knowingly carried out the decision to send fraudulent checks on behalf of the enterprise."
Leonard Leicht, an attorney for the two New Jersey firms said that as a result of the ruling virtually all of the charges against Pilot, Haslam and former Pilot employees will go forward.
"Pilot's efforts to delay this case are over" Leicht wrote. "We look forward to engaging in discovery with Pilot and finally obtaining all of the underlying documents which have never been produced."
Aubrey Harwell, Pilot's attorney, said he was pleased that the judge had dismissed many of the claims, adding "We believe the plaintiffs' remaining efforts to collect excessive damages and attorney fees lack merit. We intend to continue to defend against them vigorously.”
Thapar concluded that a third company, Shoreline Transportation of Alabama, had not provided sufficient evidence to support a racketeering charge.
Nonetheless the judge did find that all seven firms that sued Pilot, the national truck-stop firm, could pursue some of their claims under a variety of state and federal statutes.
The seven firms continued their claims after rejecting an $85 million class action settlement approved last year by a federal judge in Arkansas. Pilot also agreed to pay $92 million to the federal government to settle civil charges.
In a key section of his decision, Thapar concluded that the trucking firms could rely on a lengthy affidavit filed in U.S. District Court in Knoxville stemming from a federal probe of Pilot's rebate skimming practices.
He said the fact that the affidavit did not specifically mention National Retail and Keystone was "not dispositive of their claim," adding that Pilot attorneys had overstated the legal requirement for a conspiracy claim.
He also noted that the plaintiffs did not rely solely on the affidavit.
While granting Pilot's motions to dismiss of some claims, including those under state consumer protection laws, Thapar found that some of the claims of fraud and contractual violations can go forward. He also rejected the argument by Pilot that the trucking firms had failed to provide sufficient details of the alleged fraud.
The decision comes as a federal investigation into the rebate fraud charges continues. Thapar is presiding over the grand jury conducting that probe. Already 10 former Pilot sales officials have entered guilty pleas to mail and wire fraud charges and await sentencing.
wfrochejr999@gmail.com
In a key decision a federal judge has ruled that trucking companies can continue their claim that Pilot Travel Centers engaged in racketeering, fraud and conspiracy when it secretly reduced millions of dollars in promised diesel fuel rebates.
In a nearly 80-page decision issued in Kentucky, District Judge Amul Thapar also ruled that the companies can continue to pursue some, but not all claims against current and former Pilot employees, including its top executive and Cleveland Browns owner, James A. Haslam.
In the lengthy decision Thapar found that two New Jersey companies, National Retail Transportation and Keystone Freight, had presented sufficient evidence to go forward with claims that Pilot had engaged in racketeering, violations of both federal and New Jersey law.
Citing the allegations by the two firms, Thapar wrote that they "are sufficient to show that Pilot defendants and Propeller (an affiliated firm) knowingly carried out the decision to send fraudulent checks on behalf of the enterprise."
Leonard Leicht, an attorney for the two New Jersey firms said that as a result of the ruling virtually all of the charges against Pilot, Haslam and former Pilot employees will go forward.
"Pilot's efforts to delay this case are over" Leicht wrote. "We look forward to engaging in discovery with Pilot and finally obtaining all of the underlying documents which have never been produced."
Aubrey Harwell, Pilot's attorney, said he was pleased that the judge had dismissed many of the claims, adding "We believe the plaintiffs' remaining efforts to collect excessive damages and attorney fees lack merit. We intend to continue to defend against them vigorously.”
Thapar concluded that a third company, Shoreline Transportation of Alabama, had not provided sufficient evidence to support a racketeering charge.
Nonetheless the judge did find that all seven firms that sued Pilot, the national truck-stop firm, could pursue some of their claims under a variety of state and federal statutes.
The seven firms continued their claims after rejecting an $85 million class action settlement approved last year by a federal judge in Arkansas. Pilot also agreed to pay $92 million to the federal government to settle civil charges.
In a key section of his decision, Thapar concluded that the trucking firms could rely on a lengthy affidavit filed in U.S. District Court in Knoxville stemming from a federal probe of Pilot's rebate skimming practices.
He said the fact that the affidavit did not specifically mention National Retail and Keystone was "not dispositive of their claim," adding that Pilot attorneys had overstated the legal requirement for a conspiracy claim.
He also noted that the plaintiffs did not rely solely on the affidavit.
While granting Pilot's motions to dismiss of some claims, including those under state consumer protection laws, Thapar found that some of the claims of fraud and contractual violations can go forward. He also rejected the argument by Pilot that the trucking firms had failed to provide sufficient details of the alleged fraud.
The decision comes as a federal investigation into the rebate fraud charges continues. Thapar is presiding over the grand jury conducting that probe. Already 10 former Pilot sales officials have entered guilty pleas to mail and wire fraud charges and await sentencing.
wfrochejr999@gmail.com
Tuesday, February 3, 2015
Pilot CEO's Oceanfront House on the Sales Block
By Walter F. Roche Jr.
Pilot Flying J's chief executive James A. Haslam 3rd has put his 4.25 acre oceanfront property up for sale at nearly three times what he paid for it in 2006.
The six bedroom home and a two bedroom guest house are listed for $9.995 million with Sotheby's International. Located on Nantucket, Haslam purchased the property in 2006 for $3.85 million.
Named "Southern Winds" the property sits on the edge of the Atlantic Ocean. Records show the house was built after Haslam took ownership.
The property is located at 37 Sankaty Head Road in the town of Sconset.
The listing comes as Haslam's truckstop chain is facing a decision in the remaining civil court suits stemming from allegations that company sales executives systematically reduced promised rebates to dozens of trucking firms across the country.
A federal criminal probe of the rebate scheme is continuing and 10 former Pilot sales staffers have entered guilty pleas and await sentencing.
Haslam has denied any knowledge of the rebate skimming. The company already has paid out some $177 million to settle claims by truckers. That figure includes $92 million in payments to the federal government to settle civil charges.
While most of the civil cases were settled in a class action suit in Arkansas, a half dozen others have been consolidated before a federal judge in Kentucky.
Haslam, the brother of Tennessee Governor Bill Haslam, is also the majority owner of the Cleveland Browns.
wfrochejr999@gmail.com
- See more at:
http://www.themaurypeople.com/index.php/all-listings/property/41704-37-sankaty-head-road-nantucket-ma#sthash.xSqkURUw.dpuf
Pilot Flying J's chief executive James A. Haslam 3rd has put his 4.25 acre oceanfront property up for sale at nearly three times what he paid for it in 2006.
The six bedroom home and a two bedroom guest house are listed for $9.995 million with Sotheby's International. Located on Nantucket, Haslam purchased the property in 2006 for $3.85 million.
Named "Southern Winds" the property sits on the edge of the Atlantic Ocean. Records show the house was built after Haslam took ownership.
The property is located at 37 Sankaty Head Road in the town of Sconset.
The listing comes as Haslam's truckstop chain is facing a decision in the remaining civil court suits stemming from allegations that company sales executives systematically reduced promised rebates to dozens of trucking firms across the country.
A federal criminal probe of the rebate scheme is continuing and 10 former Pilot sales staffers have entered guilty pleas and await sentencing.
Haslam has denied any knowledge of the rebate skimming. The company already has paid out some $177 million to settle claims by truckers. That figure includes $92 million in payments to the federal government to settle civil charges.
While most of the civil cases were settled in a class action suit in Arkansas, a half dozen others have been consolidated before a federal judge in Kentucky.
Haslam, the brother of Tennessee Governor Bill Haslam, is also the majority owner of the Cleveland Browns.
wfrochejr999@gmail.com
"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 -Â is a once-in-a lifetime
opportunity for the most discriminating buyer.
Basement Description:
The lower level has a very nice sitting room with built-in shelves, two wine cupboards, a large, carpeted, “bunk room" and a bedroom with window seat and adjoining bath with shower. Full-sized window wells allow for plenty of natural light and the high ceilings contribute a feeling of spaciousness. There are two large storage rooms.
First Floor Description:
The main house is wrapped by a gracious covered porch, offering inviting opportunities to take in the views from every angle. The front door opens to a lovely foyer with a stairway winding up to the second floor and views through the house to the ocean. The raised-paneled walls and doors, stained, highly-polished antique yellow pine floors and generous ceiling height can be found throughout the house. The living room is grand in both scale and proportion, with fireplaces at either end, matching French doors to the porch and room for several comfortable seating areas. The kitchen, which can be closed off by custom-designed glass pocket doors, has a gorgeous, burl wood-topped center island and high-end appliances/amenities: a Subzero refrigerator, two under counter refrigerator drawers, a six-burner Viking range, two porcelain sinks, four dishwashers, twin wine refrigerators and white marble counters. The adjacent breakfast area with a fireplace has access to the porch, slate patio and fire pit. A first floor guest bedroom suite has a cove-planked ceiling, a cozy oversize window seat, two closets, a fireplace, French doors to the patio and a luxurious, marble and ceramic tile spa bath with walk-in shower, soaking tub and marble vanity.
Second Floor Description:
There are three bedrooms on the second floor. A guest suite at the top of the landing features two, recessed built-in twin day-beds, constructed side by side in an alcove – a very unique design – and his and hers closets, built-in bureaus, a private balcony and a large bath with walk-in shower and window seat. A second guest bedroom also has a private balcony, custom built-ins and private bath. The spectacular master suite features a massive dressing room with his and hers built-ins, French doors to a balcony overlooking the ocean and a luxurious bath with a walk-in shower, soaking tub, and oversize marble vanity.
Second Dwelling:
The guest cottage has the same high-end details and exquisite craftsmanship as the main house. The open living room/galley kitchen has a cathedral ceiling with shiplap and Shaker detail, celestial windows, a large fireplace, access to a private patio and a two car garage. There is a lovely first floor en suite bedroom and a large bedroom on the second floor with built-in twin trundle beds, a full bath and tub with shower, and his and hers built-in bureaus.
Parking Description:
Circular, crushed shell drive
Basement Description:
The lower level has a very nice sitting room with built-in shelves, two wine cupboards, a large, carpeted, “bunk room" and a bedroom with window seat and adjoining bath with shower. Full-sized window wells allow for plenty of natural light and the high ceilings contribute a feeling of spaciousness. There are two large storage rooms.
First Floor Description:
The main house is wrapped by a gracious covered porch, offering inviting opportunities to take in the views from every angle. The front door opens to a lovely foyer with a stairway winding up to the second floor and views through the house to the ocean. The raised-paneled walls and doors, stained, highly-polished antique yellow pine floors and generous ceiling height can be found throughout the house. The living room is grand in both scale and proportion, with fireplaces at either end, matching French doors to the porch and room for several comfortable seating areas. The kitchen, which can be closed off by custom-designed glass pocket doors, has a gorgeous, burl wood-topped center island and high-end appliances/amenities: a Subzero refrigerator, two under counter refrigerator drawers, a six-burner Viking range, two porcelain sinks, four dishwashers, twin wine refrigerators and white marble counters. The adjacent breakfast area with a fireplace has access to the porch, slate patio and fire pit. A first floor guest bedroom suite has a cove-planked ceiling, a cozy oversize window seat, two closets, a fireplace, French doors to the patio and a luxurious, marble and ceramic tile spa bath with walk-in shower, soaking tub and marble vanity.
Second Floor Description:
There are three bedrooms on the second floor. A guest suite at the top of the landing features two, recessed built-in twin day-beds, constructed side by side in an alcove – a very unique design – and his and hers closets, built-in bureaus, a private balcony and a large bath with walk-in shower and window seat. A second guest bedroom also has a private balcony, custom built-ins and private bath. The spectacular master suite features a massive dressing room with his and hers built-ins, French doors to a balcony overlooking the ocean and a luxurious bath with a walk-in shower, soaking tub, and oversize marble vanity.
Second Dwelling:
The guest cottage has the same high-end details and exquisite craftsmanship as the main house. The open living room/galley kitchen has a cathedral ceiling with shiplap and Shaker detail, celestial windows, a large fireplace, access to a private patio and a two car garage. There is a lovely first floor en suite bedroom and a large bedroom on the second floor with built-in twin trundle beds, a full bath and tub with shower, and his and hers built-in bureaus.
Parking Description:
Circular, crushed shell drive
Wednesday, January 7, 2015
Key Hearing Friday in Pilot Rebate Suits
By Walter F. Roche Jr.
A federal judge in Kentucky will hear key arguments Friday in suits filed by a handful of trucking companies who have charged that Pilot Flying J, the national truck stop firm, repeatedly cheated them out of millions of dollars in promised rebates.
The hearing before U.S. District Judge Amul Thapar in Covington will include motions by Pilot, the national truck stop firm, and some of the individual defendants to have the suits thrown out.
Two of the trucking firms, Keystone Freight and National Retail Transportation, have charged that Pilot's top executive, James A. Haslam 3rd, knew of and in fact was the mastermind of a scheme to secretly and systematically reduce rebates promised to high volume users of Pilot's diesel fuels.
Haslam, owner of the Cleveland Browns and brother of Tennessee Gov. Bill Haslam, has repeatedly denied any knowledge of the rebate skimming scheme. An attorney for Pilot has termed the allegations "absurd."
Asked for comment a Pilot spokesman responded, "The plaintiffs have failed to offer any evidence or information to rebut the the conclusion that their claims against Mr. Haslam lack any factual support," adding the claims of Haslam's involvement were "exhorbitant, outrageous and false."
The remaining suits were merged before Thapar last year after dozens of other suits by trucking firms were settled via a class action case in Arkansas. Keystone, National Retail and a handful of other truckers declined to accept the $85 million settlement.
The suits followed an April 15, 2013 raid by FBI and IRS agents on Pilot's Knoxville headquarters. Subsequent filings in federal court outlined a scheme by top Pilot sales officials to reduce promised rebates to trucking firms whose executives were unlikely to notice.
In addition to the $85 million class action settlement, Pilot agreed to pay $92 million to the federal government to settle allegations related to rebates.
In a 38-page bill of particulars, attorneys for Keystone and National Retail charged that Haslam was directly involved in the scheme.
"Haslam never intended for Pilot to honor its agreements with the plaintiffs," the filing states. "Pilot and Haslam specifically benefited from the scheme."
Ten former Pilot sales officials already have entered guilty pleas on mail and wire fraud charges stemming from the rebate probe. They all await sentencing.
Thapar stated in a recent hearing on the suits that he hoped to rule on the pending motions by the end of January.
wfrochejr999@gmail.com
A federal judge in Kentucky will hear key arguments Friday in suits filed by a handful of trucking companies who have charged that Pilot Flying J, the national truck stop firm, repeatedly cheated them out of millions of dollars in promised rebates.
The hearing before U.S. District Judge Amul Thapar in Covington will include motions by Pilot, the national truck stop firm, and some of the individual defendants to have the suits thrown out.
Two of the trucking firms, Keystone Freight and National Retail Transportation, have charged that Pilot's top executive, James A. Haslam 3rd, knew of and in fact was the mastermind of a scheme to secretly and systematically reduce rebates promised to high volume users of Pilot's diesel fuels.
Haslam, owner of the Cleveland Browns and brother of Tennessee Gov. Bill Haslam, has repeatedly denied any knowledge of the rebate skimming scheme. An attorney for Pilot has termed the allegations "absurd."
Asked for comment a Pilot spokesman responded, "The plaintiffs have failed to offer any evidence or information to rebut the the conclusion that their claims against Mr. Haslam lack any factual support," adding the claims of Haslam's involvement were "exhorbitant, outrageous and false."
The remaining suits were merged before Thapar last year after dozens of other suits by trucking firms were settled via a class action case in Arkansas. Keystone, National Retail and a handful of other truckers declined to accept the $85 million settlement.
The suits followed an April 15, 2013 raid by FBI and IRS agents on Pilot's Knoxville headquarters. Subsequent filings in federal court outlined a scheme by top Pilot sales officials to reduce promised rebates to trucking firms whose executives were unlikely to notice.
In addition to the $85 million class action settlement, Pilot agreed to pay $92 million to the federal government to settle allegations related to rebates.
In a 38-page bill of particulars, attorneys for Keystone and National Retail charged that Haslam was directly involved in the scheme.
"Haslam never intended for Pilot to honor its agreements with the plaintiffs," the filing states. "Pilot and Haslam specifically benefited from the scheme."
Ten former Pilot sales officials already have entered guilty pleas on mail and wire fraud charges stemming from the rebate probe. They all await sentencing.
Thapar stated in a recent hearing on the suits that he hoped to rule on the pending motions by the end of January.
wfrochejr999@gmail.com
Saturday, November 15, 2014
Filing Charges Haslam Directly Involved in Rebate Fraud, Charges Termed "Absurd"
By Walter F. Roche Jr.
A bill of particulars filed in a series of suits against Pilot Flying J charges that the company president, James A. Haslam, was directly involved in a scheme to defraud truckers of millions of dollars in promised diesel fuel rebates.
The allegations were contained in a 38-page filing by attorneys for two New Jersey trucking firms, National Retail Transportation and Keystone Freight, submitted Friday in U.S. District Court in Kentucky.
The bill of particulars, which was requested by the judge presiding over the case, states that Haslam "instructed" his employees to advise the two firms that they would get specific discounts.
"Haslam never intended for Pilot to honor its agreements with the plaintiffs," the filing states. "Pilot and Haslam specifically benefited from the scheme."
Haslam, brother of Tennessee Gov. William Haslam, has repeatedly denied any knowledge of the rebate skimming scheme.
Pilot's attorney, Aubrey Harwell, said he had not seen the filing, but strongly denied that James Haslam was involved.
"It is absurd to suggest that Jimmy Haslam instructed any Pilot employees to make any promise that he never intended for the company to honor. Any such allegation is absolutely inaccurate and totally contrary to the truth," Harwell wrote in an email.
The allegations come in a series of civil suits filed against Pilot, Haslam and other former Pilot executives that have been consolidated before U.S. District Judge Amul Thapar.
The suits were prompted by a series of court filings following an April 15, 2013 FBI raid on Pilot's Knoxville headquarters. Subsequently 10 Pilot sales executives have entered guilty pleas to mail and wire fraud charges.
In a filing shortly after the 2013 raid, an FBI agent described a long term scheme by Pilot sales executives to cheat truckers, who they thought wouldn't notice, out of promised rebates. The filing included transcripts of secretly recorded Pilot meetings in which the scheme was described.
Pilot already has reached a $85 million settlement with some of its trucking clients in another suit filed in Arkansas. It also reached a $92 million settlement with the federal government.
A second bill of particulars filed by Osborn Transportation, an Alabama firm, does not name Haslam.
Both filings, however, charge that Pilot cheated the trucking firms out of promised rebates.
wfrochejr999@gmail.com
A bill of particulars filed in a series of suits against Pilot Flying J charges that the company president, James A. Haslam, was directly involved in a scheme to defraud truckers of millions of dollars in promised diesel fuel rebates.
The allegations were contained in a 38-page filing by attorneys for two New Jersey trucking firms, National Retail Transportation and Keystone Freight, submitted Friday in U.S. District Court in Kentucky.
The bill of particulars, which was requested by the judge presiding over the case, states that Haslam "instructed" his employees to advise the two firms that they would get specific discounts.
"Haslam never intended for Pilot to honor its agreements with the plaintiffs," the filing states. "Pilot and Haslam specifically benefited from the scheme."
Haslam, brother of Tennessee Gov. William Haslam, has repeatedly denied any knowledge of the rebate skimming scheme.
Pilot's attorney, Aubrey Harwell, said he had not seen the filing, but strongly denied that James Haslam was involved.
"It is absurd to suggest that Jimmy Haslam instructed any Pilot employees to make any promise that he never intended for the company to honor. Any such allegation is absolutely inaccurate and totally contrary to the truth," Harwell wrote in an email.
The allegations come in a series of civil suits filed against Pilot, Haslam and other former Pilot executives that have been consolidated before U.S. District Judge Amul Thapar.
The suits were prompted by a series of court filings following an April 15, 2013 FBI raid on Pilot's Knoxville headquarters. Subsequently 10 Pilot sales executives have entered guilty pleas to mail and wire fraud charges.
In a filing shortly after the 2013 raid, an FBI agent described a long term scheme by Pilot sales executives to cheat truckers, who they thought wouldn't notice, out of promised rebates. The filing included transcripts of secretly recorded Pilot meetings in which the scheme was described.
Pilot already has reached a $85 million settlement with some of its trucking clients in another suit filed in Arkansas. It also reached a $92 million settlement with the federal government.
A second bill of particulars filed by Osborn Transportation, an Alabama firm, does not name Haslam.
Both filings, however, charge that Pilot cheated the trucking firms out of promised rebates.
wfrochejr999@gmail.com
Friday, October 31, 2014
Judge Sets Deadlines in Pilot Travel Civil Suits
By Walter F. Roche Jr.
Stating that he wants to keep things moving, a federal judge has set a series of deadlines for hearings and filings in a half dozen civil suits against Pilot Travel, the nationwide truck stop firm charged with cheating truckers out of millions of dollars in promised rebates.
In a 26-minute telephone conference Friday, U.S. District Judge Amul R. Thapar told lawyers for the trucking firms that they must file any amendments to their existing complaints by Nov. 14. He also set deadlines for additional filings by Pilot and scheduled court sessions through mid-February.
Thapar also promised to rule on several key pending motions by early next year.
"I'll move heaven and earth to get a decision out at the end of January," Thapar said.
The suits, which have been merged in U.S. District Court in Kentucky, stem from allegations that Pilot sales executives routinely cheated truckers out of promised rebates. Pilot already has reached a $92 million settlement with the federal government over the allegations.
In addition the company settled charges with most its customers in a class action suit filed last year in Arkansas. Payments under that agreement totaled $85 million.
Thapar ruled that, at least for now, he will not allow the trucking firms to use the federal settlement to bolster the civil cases.
In addition to the deadline for filing amended complaints, Thapar asked the attorneys to provide him with what he termed "a cheat sheet" summarizing the particulars of their claims and the statutes involved.
He also set a deadline for Pilot to file its responses to amended complaints and scheduled a hearing for oral arguments on Jan. 9 in Covington, Ky.
Exempted from some of the deadlines was Wright Transportation, an Alabama firm which already has filed its amended complaint.
Lawyers for the trucking firms and Pilot, including its chief executive, James A. Haslam, all indicated they were pleased with Thapar's timetable. Haslam, the brother of Tennessee Gov. Bill Haslam, is a named defendant in two of the cases.
Thapar is also presiding over the grand jury investigating the rebate skimming allegations. Already 10 former Pilot executives and sales staffers have entered guilty pleas to mail and wire fraud charges and are awaiting sentencing.
wfrochejr999@gmail.com
Stating that he wants to keep things moving, a federal judge has set a series of deadlines for hearings and filings in a half dozen civil suits against Pilot Travel, the nationwide truck stop firm charged with cheating truckers out of millions of dollars in promised rebates.
In a 26-minute telephone conference Friday, U.S. District Judge Amul R. Thapar told lawyers for the trucking firms that they must file any amendments to their existing complaints by Nov. 14. He also set deadlines for additional filings by Pilot and scheduled court sessions through mid-February.
Thapar also promised to rule on several key pending motions by early next year.
"I'll move heaven and earth to get a decision out at the end of January," Thapar said.
The suits, which have been merged in U.S. District Court in Kentucky, stem from allegations that Pilot sales executives routinely cheated truckers out of promised rebates. Pilot already has reached a $92 million settlement with the federal government over the allegations.
In addition the company settled charges with most its customers in a class action suit filed last year in Arkansas. Payments under that agreement totaled $85 million.
Thapar ruled that, at least for now, he will not allow the trucking firms to use the federal settlement to bolster the civil cases.
In addition to the deadline for filing amended complaints, Thapar asked the attorneys to provide him with what he termed "a cheat sheet" summarizing the particulars of their claims and the statutes involved.
He also set a deadline for Pilot to file its responses to amended complaints and scheduled a hearing for oral arguments on Jan. 9 in Covington, Ky.
Exempted from some of the deadlines was Wright Transportation, an Alabama firm which already has filed its amended complaint.
Lawyers for the trucking firms and Pilot, including its chief executive, James A. Haslam, all indicated they were pleased with Thapar's timetable. Haslam, the brother of Tennessee Gov. Bill Haslam, is a named defendant in two of the cases.
Thapar is also presiding over the grand jury investigating the rebate skimming allegations. Already 10 former Pilot executives and sales staffers have entered guilty pleas to mail and wire fraud charges and are awaiting sentencing.
wfrochejr999@gmail.com
Monday, October 6, 2014
Top Former Pilot Executives Got Target Letters, Civil Suit Charges
By Walter F. Roche Jr.
A filing in a civil suit in Kentucky states that two top former executives of Pilot Flying J have received target letters as part of the investigation of a rebate skimming scheme that has already resulted in guilty pleas by 10 other former employees of the Knoxville firm.
In a 73-page amended complaint filed Friday in U.S. District Court, attorneys for two New Jersey firms, National Retail Transportation and Keystone Freight, charge that target letters were sent to former Pilot President Mark Hazelwood and John Freeman, who was Pilot's national vice president of sales.
The amended complaint also repeats charges that Pilot Chief Executive Officer James A. Haslam knew of the scheme and approved of it.
Target letters are generally sent to those persons being investigated for suspected criminal violations. They are not formal charges and neither Freeman nor Hazelwood have been indicted. Their lawyers did not respond to a request for comment Monday but in the past they have denied their clients received target letters.
As spelled out in court filings, top Pilot executives and sales staff routinely reduced the rebates promised to truckers. Pilot already has reached a $92 million settlement with the federal government because of the rebate reduction scheme.
The filing comes in one of a handful of remaining civil suits against Pilot, all filed following an April 15, 2013 raid on the travel stop chain's headquarters. A subsequent court filing included lengthy excerpts from transcripts of secretly taped Pilot sales meetings in which the rebate reduction plan was openly discussed.
Lawyers for Haslam and Pilot have filed motions to have the suits dismissed.
The lengthy amended complaint filed Friday also names more than a half dozen other Pilot staffers that the trucking firms' attorneys charge were involved in a conspiracy to deprive the truckers of promised payments. Though some have been previously identified, many have not.
The filing charges violations of federal and state racketeering laws, fraud and violations of New Jersey consumer protection statutes.
A filing in a civil suit in Kentucky states that two top former executives of Pilot Flying J have received target letters as part of the investigation of a rebate skimming scheme that has already resulted in guilty pleas by 10 other former employees of the Knoxville firm.
In a 73-page amended complaint filed Friday in U.S. District Court, attorneys for two New Jersey firms, National Retail Transportation and Keystone Freight, charge that target letters were sent to former Pilot President Mark Hazelwood and John Freeman, who was Pilot's national vice president of sales.
The amended complaint also repeats charges that Pilot Chief Executive Officer James A. Haslam knew of the scheme and approved of it.
Target letters are generally sent to those persons being investigated for suspected criminal violations. They are not formal charges and neither Freeman nor Hazelwood have been indicted. Their lawyers did not respond to a request for comment Monday but in the past they have denied their clients received target letters.
As spelled out in court filings, top Pilot executives and sales staff routinely reduced the rebates promised to truckers. Pilot already has reached a $92 million settlement with the federal government because of the rebate reduction scheme.
The filing comes in one of a handful of remaining civil suits against Pilot, all filed following an April 15, 2013 raid on the travel stop chain's headquarters. A subsequent court filing included lengthy excerpts from transcripts of secretly taped Pilot sales meetings in which the rebate reduction plan was openly discussed.
Lawyers for Haslam and Pilot have filed motions to have the suits dismissed.
The lengthy amended complaint filed Friday also names more than a half dozen other Pilot staffers that the trucking firms' attorneys charge were involved in a conspiracy to deprive the truckers of promised payments. Though some have been previously identified, many have not.
The filing charges violations of federal and state racketeering laws, fraud and violations of New Jersey consumer protection statutes.
Subscribe to:
Posts (Atom)