New Browns owner the truckstop tycoon in hot water with Feds

[many a good man]

Owner Jimmy Haslam made his billions running the largest truck stop chain in the country, the privately owned Pilot Flying J. Company headquarters in Knoxville was raided by the FBI and IRS on Monday.

Cleveland's lapdog press has little to say on the matter so we have to turn to bloggers for information and speculation. Eric Holder may soon be the new owner of the Cleveland Browns!

There have been reports that the probable cause behind a judge’s issuing of search warrants centers on rebates. The FBI needs to show probable cause to a judge in order to get a warrant; perhaps ‘rebate’ was the lowest hanging fruit. But once the FBI is culling through your emails looking for malfeasance of rebate application.. everything is fair game.

But if you want some ideas/theories/WAGs on where the investigation may lead, the comments section of the Knoxville News Sentinel article as well as ABC station WATE’s story offer some:

* A simple customer rebate issue or dispute would be a civil issue and not criminal, the FBI does not get involved in civil matters as they are a criminal investigative division. This quick cover our butt answer is for those who don’t know the difference between civil and criminal.

* Price gouging, tax fraud and attempt to bribe a federal official will be added soon. I heard from several employees at Pilot/Flying J head quarters that Jimmy offered a payout to the FBI to get out. Guess we will see if it worked or not. The local businesses have been getting the shaft from the Haslems for years its about time someone pays them back.

* I wouldn’t jump to cooking the books. It’s common knowledge that that pilot is used for prostitution. I’m thinking more like money laundering.

* I’ve worked for Pilot and one of their business partners. I met Bill, Big Jim, Jimmy and they could care less about the people that actually work for them. All they care about is how the general public perceives them and the money they make. Sure they’ll smile and talk to you. But you can always see that little “I’m better than you” sneer lurking just beneath the facade they put on.

* Does a wild Bear use a Port-a-Potty ? Nope. And the FBI and IRS does not close the HQ and serve 2 search warrants for a small number of unpaid rebates. If they did Best Buy and a lot of other companies would be raided daily. Jimmy has some real splainin’ to do and not this smoke and mirror show.

Lots of other interesting stuff....Haslam stills owes $315MM to complete Browns purchase...PFJ busted for price gouging following Hurricane Ike...PFJ reports income of only $65MM against revenues of $29BB....


http://jimkanicki.wordpress.com/2013/04/17/they-dont-call/

[Auggie]

1. Uh-oh ...

Money laundering? Sex slave trade?

That's some heinous stuff being suggested. Why can't Haslam be more like Eddie DeBartolo and simply bribe a Governor?

[madinmaryland]

2. Who would ever think that bribing a governor would sound so pedestrian.

[many a good man]

3. He doesn't need to bribe the Governor

The Governor is his brother! And part owner.

Maybe Ashley Judd will run for governor now, though she'd make a great owner of the Browns!

[many a good man]

4. BREAKING: Haslam charged with Fraud in federal court

CLEVELAND, Ohio -- Cleveland Browns owner Jimmy Haslam's travel center company for "many years'' engaged in a fraud scheme to keep money owed to customers as gas rebates, according to documents filed in federal court Thursday.

The documents further say Haslam knew about the fraud committed by top sales officials at his family business, Pilot Flying J, in which employees targeted unsophisticated trucking companies through a rebate program. Federal documents unsealed today also say he was present for discussions about the rebate fraud activities.

A 120-page affidavit to a search warrant (read the full text of the affidavit in the document viewer below) filed in U.S. District Court in Knoxville, Tenn., says Pilot Flying J sales employees withheld fuel price rebates and discounts in an attempt to boost the profitability of the company and increase their sales commissions.

The affidavit makes clear what Haslam knew: &quot A confidential informant) further advised that the rebate fraud has occurred with the knowledge of Pilot's current President Mark Hazelwood and Pilot's Chief Executive Officer James A. "Jimmy" Haslam III due to the fact that the rebate fraud-related activities have been discussed during sales meetings in Knoxville, Tenn., in which Hazelwood and Haslam have been present.''

http://www.cleveland.com/metro/index.ssf/2013/04/cleveland_browns_owner_jimmy_h_1.html

Looks like Jimmy will be watching his team in federal prison wearing an orange jumpsuit instead of the owner's suite.

[Auggie]

5. I was a juror on a fraud case a while back,

and as I understood it, it's quite difficult to prove. But if the Feds have documented proof plus testimony, he's going down as hard as a blind side sack.

[bluedigger]

6. I wonder what the protocol is for that?

He's innocent until proven guilty but the NFL must be shitting a brick at the prospect of having him running the team all season with the trial hanging over his head. I bet they pressure him to recuse himself from daily operations somehow.

[HughBeaumont]

7. Siiiiiiiiigggghh . . . yet another "Remember, This is Cleveland" story.

We're never going to have a winner.

We're never going to see a championship in our lifetimes.

We're plagued with the worst and most unqualified GMs and owners in history.

2003 aside, Cleveland has the WORST draft luck.

Every failure in Cleveland has a name.

Now we get to add "The Felon" to the list.

Classic.

[wilt the stilt]

8. I once cabled all of their truck stops

In an earlier sales life I worked with them and I have been at their HQ many times. The place was always professional with me. I do think this is bad news for Cleveland. These guys are doing time.