Haslam says 250 truckers may be owed money by Pilot Flying J

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Pilot Flying J CEO Jimmy Haslam told trucking executives today that he now estimates that 250 trucking firms may be owed money in the wake of an FBI investigation into allegations of a rebate skimming scam.

Speaking to an annual conference of truckers in Indianapolis, Haslam said he personally was not aware of the scam prior to the April 15 raid on his company headquarters in Knoxville by FBI and IRS agents.

"I take responsibility for what happens at PFJ as the guy at the top of the shop, but I was absolutely not aware of any of this," Haslam said.

Haslam said that since the raid and a subsequent federal court filing detailing the alleged rebate scam he and his staff have been reviewing company records and determined that out of 5,000 total customers, about 400 were on a manual system for determining rebates. Of that 400, about 250 are probably owed money, he said

http://www.tennessean.com/apps/pbcs.dll/article?AID=2013305160091

very misleading headline...not 250 truckers, it's 250 TRUCKING FIRMS....

[Lars39]

1. I see he's wearing the official "I'm screwn" look.

[True Earthling]

2. Didn't know? ...bullshit!

One of the most shocking assertions made by the affidavit is that many top executives – including Jimmy Haslam himself – were aware of what the FBI is calling “Discount Fraud.” Here’s a piece of the transcript taken directly from the affidavit. One of the confidential informants is talking with the Vice President of Sales about what to do if a company catches on:

Confidential Informant: Well what if you can’t talk your way out of it? They figure out a way and they’ve got you nailed?

VP: You pay up.

Confidential Informant: Pay it?

VP: Yeah. Or you buy an airplane.

Confidential Informant: What does Mark and Jimmy say about shit like that? Do they even catch it or do they know?

VP: Fuckin’ A. I mean, I called Jimmy and told him I got busted at Western Express.

Confidential Informant: What’d he say?

VP: Oh he knew it.

Confidential Informant: Oh did he?

VP: Absolutely. I mean, he knew all along that I was cost-plussin’ this guy. He knew it all along. Loved it. We were makin’ $450,000 a month on him–

Confidential Informant: Holy s—t!

VP: – why wouldn’t he love it?

Confidential Informant: Yeah.

VP: Did it for five years, cost us a million bucks. I mean, we made $6 million on the guy, cost us a million bucks.



It is also reported that Haslam received several reports sent by email that would have shown the fraud in practice. This is in addition to an email reportedly sent by an employee on January 24th, 2013 that “Jimmy Haslam and John Freeman were looking carefully at every Customer’s profit and loss report and consolidating duplicate entries. [The confidential informant] stated that the increased profit from Rebate Fraud would be clearly evident to Jimmy Haslam and John Freeman.”

http://www.thetruckersreport.com/f-em-early-and-f-em-often-says-pilot-flying-j-vp-about-customers/

Jimmy Haslam’s wealth is estimated at $1.8 billion by Forbes magazine, which also ranks Pilot Flying J as the sixth-largest privately held company in the country. The company’s estimated revenues of $31 billion come within $2 billion of Tennessee’s annual budget plan.

The Haslam family had long been active behind the scenes in Republican politics, mostly as campaign donors. Jim and Jimmy Haslam were among the top fundraisers for George W. Bush’s presidential bids and for other GOP candidates.

Jimmy Haslam has been close friends with U.S. Sen. Bob Corker, R-Tenn., since they were roommates at the University of Tennessee, and their families have vacationed together at Haslam’s summer home on Nantucket, Mass.

The governor and Jimmy Haslam also lead the ownership group of the Tennessee Smokies, a double-A affiliate of the Chicago Cubs. Gary Wade, chief justice of the Tennessee Supreme Court, is part of the group.

Bill Haslam was the first in the family to run for office, narrowly winning the 2003 Knoxville mayor’s race. Seven years later he was elected governor. That race featured heavy criticism from both Democratic and Republican candidates about his refusal to divulge financial details about his stake in Pilot.

A spokesman said the FBI allegations haven’t changed the governor’s views on keeping his Pilot earnings secret or keeping his holdings in the company outside of a blind trust for his other investments.

Democrat Mike McWherter, who lost the 2010 governor’s race to Haslam, said the revelations emerging out of the Pilot investigation renew questions about the governor’s stake in the company.

http://www.ohio.com/news/break-news/browns-owner-jimmy-haslam-his-family-try-to-halt-fallout-from-fbi-raid-on-pilot-flying-j-1.392408