Federal Prosecutors Move to Drop Charges Against Former Pilot Flying J Fuel Executives

Flying J gas station, Nephi, Utah

Federal prosecutors indicated on Tuesday that they will drop the charges against former president of Pilot Flying J Mark Hazelwood and two other employees.

The motion filed in the U.S. District Court for the Eastern District of Tennessee will formally end the attempt to prosecute Hazelwood and former Vice President Scott “Scooter” Wombold and former account representative Heather Jones.

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Lawyers for Pilot Flying J Ex-President Say Evidence Was Inaccurate, Incomplete

The legal defense team for Mark Hazelwood announced it filed a brief presenting the court with newly found exculpatory evidence in support of his request for a new trial in the case surrounding truck stop chain Pilot Flying J. The brief was filed in U.S. District Court for the Eastern District of Tennessee by Walden Macht & Haran LLP on behalf of the former president of the truck stop chain. The attorneys claim the government used a “doctored and materially incomplete transcript of a critical recording.” Hazelwood was found guilty by a jury in February of three out of the four federal charges brought against him – including conspiracy to commit mail/wire fraud and witness tampering – in connection with his alleged role in a multi-million dollar rebate scam to bilk customers out of $56 million. He was found not guilty on the remaining charge of wire fraud. The Walden Macht & Haran press release said, “The new evidence reveals that the government, either intentionally or unintentionally, used a doctored and materially incomplete transcript of a secret and critical recording at trial, thus fundamentally misleading the jury. The doctored transcript was the single most important piece of evidence used by…

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Judge Orders Pilot Flying J Prosecutors to ‘Make a List and Put the Guiltiest on Top’ As Sentencing Phase Begins

U.S. District Judge Curtis L. Collier issued an order to federal prosecutors Tuesday to “make a list of convicted Pilot Flying J fraudsters and put the guiltiest at the top,” Knoxville News Sentinel reported, as 17 former executives and staffers begin the sentencing phase of their trials after being found guilty in their roles in a massive rebate scam aimed at fleecing truckers who participated in the ill-fated program. The order comes after a jury in the U.S. District Court in Chattanooga found former Pilot Flying J President Mark Hazelwood and ex-staffer Heather Jones guilty of conspiracy to commit wire and mail fraud. Former vice president Scott “Scooter” Wombold was acquitted of participating substantially in the scheme, but for a single count of fraud. Account representative Karen Mann was found not guilty the charges filed against her. Meanwhile, 14 other former executives and staffers plead guilty for their roles in the scam since the April 2013 raid of the Pilot Flying J headquarters in Knoxville. Knox news reports: Each of those 17, including Hazelwood, now must face Collier for sentencing hearings. The law requires that Collier assess each co-conspirator’s individual bad behavior and personal history. Collier also must decide each co-conspirator’s…

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GUILTY: Former Pilot Flying J President Found Guilty of Conspiracy to Commit Wire Fraud and Witness Tampering

Former Pilot Flying J president Mark Hazelwood was found guilty by a jury on Thursday of three out of the four federal charges brought against him – including conspiracy to commit mail/wire fraud and witness tampering – in connection with his role in a multi-million dollar rebate scam to bilk customers out of a total of $56 million. He was found not guilty on the remaining charge of wire fraud. Additionally, former Pilot vice president Scott Wombold and former direct sales person Heather Jones were found guilty of a single count of mail/wire fraud and wire fraud, respectively. The trio will learn their sentencing on June 27th in Chattanooga. Pilot Flying J is the 14th largest privately held company in the United States. A majority of the company’s stock is owned by the Haslam family, which includes company founder Big Jim Haslam and his sons, company CEO Jimmy Haslam and Gov. Bill Haslam. Earlier this year, Pilot Flying J announced it had completed a deal to sell a controlling interest in the company to Warren Buffet’s Berkshire Hathaway company. WBIR was outside the courthouse and spoke to Hazelwood’s attorney, Rusty Hardin. Reacting to the verdict, he told reporters, “We continue to believe he’s…

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Jimmy Haslam Knew About and ‘Loved’ Fuel Rebate Scam, According to Recording Played at Pilot Flying J Trial

Jimmy Haslam, CEO of Pilot Flying J, knew about a fuel rebate scheme at his company and “loved it,” according to what an executive said in a secret recording that jurors heard in court Tuesday. Haslam, brother of Tennessee Gov. Bill Haslam and owner of the Cleveland Browns football team, has denied knowledge of the widespread fraud scheme and has not been charged. Four former employees of the truck stop chain are currently on trial in U.S. District Court in Chattanooga. In all, 18 former employees were charged in the scheme and 14 pleaded guilty. The fraud involved shorting trucking companies on promised diesel fuel rebates. “He knew – absolutely,” John “Stick” Freeman, former Pilot Flying J vice president of sales, said of Jimmy Haslam in the recording played in court Tuesday, according to the Knoxville News-Sentinel. Federal prosecutors released a transcript of the recording after Pilot Flying J was raided by federal agents in 2013, but Tuesday was the first time the recording was heard publicly. The recording was made by Vincent Greco, then a sales director for the company, who wore a wire for investigators. Freeman said in the recording that former president Mark Hazelwood also knew about the scheme.…

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Pilot Flying J Trial in Chattanooga Reveals Details of Scheme to Defraud Truck Stop Customers

Defense attorneys for the highest-ranking Pilot Flying J executive charged in a fuel rebate scandal say former president Mark Hazelwood was too busy doing his job to be involved in the scheme, reports the Knoxville News-Sentinel. That also goes for CEO Jimmy Haslam, defense attorneys say. Jimmy Haslam, who has not been charged, is the brother of Tennessee Gov. Bill Haslam and owner of the Cleveland Browns football team. The truck stop giant is a Haslam family business. Gov. Haslam is no longer involved in its daily operations. The trial of Hazelwood and three others started last week on Monday in U.S. District Court in Chattanooga and is expected to last until at least late December. Former vice president of sales Scott Wombold and regional account representatives Heather Jones and Karen Mann are also standing trial in Chattanooga on charges of conspiracy to commit wire and mail fraud. Hazelwood and Wombold deny involvement in the scheme and Jones and Mann have said they simply followed orders. In secret recordings made by a sales employee for investigators, Hazelwood’s voice can be heard in talk of the scheme. Haslam’s voice is not heard in any recordings that have been released. Prosecutors say Pilot…

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