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
Saturday, November 15, 2014
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.
Wednesday, September 24, 2014
Pilot Suit Dismissed
One of a handful of the remaining civil suits against Pilot Flying J has been voluntarily dismissed by a federal judge in Kentucky.
The dismissal order was issued Wednesday after lawyers for the trucking company, Triple D Supply, requested the action. The national truck stop firm still faces five other suits brought by truckers who claim they were cheated out of promised rebates.
Lawyers for Triple D, a New Mexico based firm, did not respond to a request for comment.
At one point Knoxville based Pilot was facing dozens of similar suits, but many were resolved in an $85 million class action settlement approved in federal court in Arkansas last November.
Pilot's lawyers recently joined with the company CEO James Haslam in asking that the remaining civil suits be dismissed.
The motions are due to be heard in a November hearing before U.S. District Judge Amul Thapar.
Pilot also has reached a $92 million settlement with the federal government over the rebate skimming charges and 10 of its former executives have entered guilty pleas and await sentencing on mail and wire fraud charges.
The civil suits followed an April 15, 2013 raid on Pilot's headquarters by the FBI and IRS.
The dismissal order was issued Wednesday after lawyers for the trucking company, Triple D Supply, requested the action. The national truck stop firm still faces five other suits brought by truckers who claim they were cheated out of promised rebates.
Lawyers for Triple D, a New Mexico based firm, did not respond to a request for comment.
At one point Knoxville based Pilot was facing dozens of similar suits, but many were resolved in an $85 million class action settlement approved in federal court in Arkansas last November.
Pilot's lawyers recently joined with the company CEO James Haslam in asking that the remaining civil suits be dismissed.
The motions are due to be heard in a November hearing before U.S. District Judge Amul Thapar.
Pilot also has reached a $92 million settlement with the federal government over the rebate skimming charges and 10 of its former executives have entered guilty pleas and await sentencing on mail and wire fraud charges.
The civil suits followed an April 15, 2013 raid on Pilot's headquarters by the FBI and IRS.
Monday, September 15, 2014
Haslam Seeks Dismissal in Rebate Suit
By Walter F. Roche Jr.
Lawyers for Pilot Flying J's top executive, James A. Haslam, are asking a federal judge in Kentucky to dismiss charges leveled against him in a rebate shaving scheme that already has cost his company more than $175 million.
In a motion filed Monday in U.S. District Court, Haslam's attorneys said the charges should be dismissed because the complaint filed by National Retail Transportation fails to include any details of Haslam's alleged involvement.
The action comes in one of the handful of civil suits against Pilot stemming from the allegations in an FBI affidavit which detailed a widespread scheme among Pilot sales executives to cheat truckers out of promised rebates. Ten former Pilot sales staffers already have entered guilty pleas to mail and wire fraud charges.
"The complaint makes no mention of Haslam beyond the implicit conclusion of Haslam in the collective reference to 'defendants,'" the motion states.
Haslam's lawyers, from the law firm of O'Melveny and Myers, said in the filing that they were also joining in a companion dismissal motion filed by Pilot itself. Pilot's motion and a 50-page memorandum seeks dismissal of all the pending claims.
"Plaintiff makes no allegation that Haslam interacted or had any communication with plaintiff's," the brief states.
In addition to National Retail Transportation, plaintiffs in the suit include Keystone Freight.
James A. Haslam is the brother of William Haslam, the Tennessee governor and a former Pilot executive.
Several other suits against Pilot were settled in a class action case filed last year in federal court in Arkansas. Pilot agreed to pay some $85 million to settle those suits. Recently it reached an agreement to pay $92 million to settle charges with the federal government.
In related action, lawyers for National Retail Monday voluntarily dismissed as defendants in the case six of the former Pilot executives who have entered guilty pleas.
Lawyers for Pilot Flying J's top executive, James A. Haslam, are asking a federal judge in Kentucky to dismiss charges leveled against him in a rebate shaving scheme that already has cost his company more than $175 million.
In a motion filed Monday in U.S. District Court, Haslam's attorneys said the charges should be dismissed because the complaint filed by National Retail Transportation fails to include any details of Haslam's alleged involvement.
The action comes in one of the handful of civil suits against Pilot stemming from the allegations in an FBI affidavit which detailed a widespread scheme among Pilot sales executives to cheat truckers out of promised rebates. Ten former Pilot sales staffers already have entered guilty pleas to mail and wire fraud charges.
"The complaint makes no mention of Haslam beyond the implicit conclusion of Haslam in the collective reference to 'defendants,'" the motion states.
Haslam's lawyers, from the law firm of O'Melveny and Myers, said in the filing that they were also joining in a companion dismissal motion filed by Pilot itself. Pilot's motion and a 50-page memorandum seeks dismissal of all the pending claims.
"Plaintiff makes no allegation that Haslam interacted or had any communication with plaintiff's," the brief states.
In addition to National Retail Transportation, plaintiffs in the suit include Keystone Freight.
James A. Haslam is the brother of William Haslam, the Tennessee governor and a former Pilot executive.
Several other suits against Pilot were settled in a class action case filed last year in federal court in Arkansas. Pilot agreed to pay some $85 million to settle those suits. Recently it reached an agreement to pay $92 million to settle charges with the federal government.
In related action, lawyers for National Retail Monday voluntarily dismissed as defendants in the case six of the former Pilot executives who have entered guilty pleas.
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