The board's server will undergo upgrade maintenance tonight, Nov 5, 2014, beginning approximately around 10 PM ET. Prepare for some possible down time during this process.
FBI: Pilot Worker Says Haslam Knew Of Rebate Fraud
by The Associated Press April 18, 2013 9:31 PM
NASHVILLE, Tenn. (AP) — A Pilot Flying J employee told investigators that CEO Jimmy Haslam, who is also the owner of the Cleveland Browns, knew about rebate fraud at the truck stop chain his family owns, according to an FBI affidavit unsealed Thursday.
The 120-page document filed federal court in Knoxville, where Pilot is based, alleges that members of the company's sales force preyed on smaller trucking companies by reducing the amount of rebates they were owed for buying certain amounts of fuel.
Special Agent Robert H. Root alleged a "conspiracy and scheme to defraud executed by various Pilot employees to deceptively withhold diesel fuel price rebates and discounts from Pilot customers ... for the dual purposes of increasing the profitability of Pilot and increasing the diesel sales commissions of the Pilot employees participating in the fraud."
The affidavit was filed to secure the search warrants used in Monday's raid on the Pilot Flying J headquarters.
One employee identified only as a confidential source told investigators that the rebate scheme was discussed during sales meetings attended by Haslam and Pilot President Mark Hazelwood.
The informant said the practice was known by a variety of euphemisms ranging from "manual rebates" to "screwing."
Haslam denied wrongdoing in a news conference earlier this week. He said in a statement Thursday that "the foundation of this company is built on its integrity and that any willful wrongdoing by any employee of this company at any time is intolerable."
He said the company would continue to cooperate with authorities and conduct its own investigation.
Informants secretly recorded conversations among Pilot employees holding frank —and often profane — discussions about the rebate scheme, and agents interviewed current and former members of the sales team.
The investigation began after agents were contacted in May 2011 by a confidential informant who said they had been told about the scheme by a Pilot Flying J employee. The investigation continued through this month. Jimmy Haslam bought the Cleveland Browns in a $1 billion deal last summer.
Haslam was in Cleveland on Thursday to help prepare for next week's NFL draft. League spokesman Greg? Aiello declined to weigh in on whether the investigation would affect Haslam's role as team owner.
"We must respect the process of a federal investigation and decline comment," Aiello wrote in an email.
Pilot Flying J, a privately held company with annual revenues of $29 billion, is the nation's No. 1 retailer of diesel fuel. It is mostly owned by Haslam; his brother, Tennessee Gov. Bill Haslam; their father and company founder Jim Haslam; and other family members.
When Pilot bought its nearest competitor Flying J out of bankruptcy in 2009, federal trade officials worried the combined entity owned by the powerful Haslam family could corner the market on diesel fuel.
To alleviate "competitive concerns," the Federal Trade Commission in 2010 required Pilot to sell some truck stops to a competitor, Love's, and share its fuel purchase technology before it could merge.
When asked earlier this week whether the probe was related to the FTC's previous concerns about unfair competition, Haslam replied: "We would not think so." An FTC spokesman declined to comment.
According to the IRS, it is common for fuel stops to hand out monthly rebates on purchased fuel. Rebates should be reported as income, as a reduction of expense, or as a reduction to the cost of the new asset.
Not all customers doing business with Pilot are on the rebate program.
Pat Marsh, chairman of Shelbyville, Tenn.-based Big G Express, said his trucking company had a rebate program set up when it was a client with Flying J. Since the Pilot takeover, that system has been replaced with pre-negotiated prices paid at the pump with swipe cards. It tracks the mileage on trucks, the identity of the driver and the amount of fuel purchased
"The more we buy, the cheaper the price is," said Marsh, who is also a Republican state representative, said in an interview before the affidavits were released. "We negotiate our price talking to the corporate people and the sales people and by how many gallons we purchase."
Marsh said he was surprised to see the Pilot Flying J headquarters raided.
"We've had nothing but a great relationship with those guys," he said. "They treat us fairly."
Several trucking companies are named in the affidavit as having not received their negotiated rebates from Pilot. None immediately responded to messages from The Associated Press seeking comment.
Post subject: Re: The Official Cleveland National Champions Thread
Posted: Sun April 21, 2013 3:29 pm
Site Admin
Joined: Wed December 12, 2012 10:33 pm Posts: 6932
This guy must have used Rod Blagojevich as an inspiration.
John Freeman, Pilot Flying J V.P. of Sales wrote:
Hey this is a game. We’re playin’ fuckin’ poker with funny money, and it’s liar’s poker with funny money because of all this cost-plus stuff. So, you know, I’m not, I don’t want to get into a moral or ethical conversation, because I believe that if a guy’s gonna butt-fuck you then we got to go to butt-fuckin’ him harder. . . . Some people are tits and some people ass guys and some people want their discount managed through the system and some people like a big check. I mean, fuck, sell it to ‘em the way they want to buy. And understand, the fucker’s got the ability to know what the hell you’re doing to ‘em. Okay?
Post subject: Re: The Official Cleveland National Champions Thread
Posted: Tue October 01, 2013 5:49 pm
Site Admin
Joined: Wed December 12, 2012 10:33 pm Posts: 6932
Orpheus wrote:
Trent Richardson trade is looking pretty smart. Even the ghost of Willis McGahee past can get three yards a carry.
I am amazed at how many of the super-stat guys have been hating on Richardson since day one. Let's see how he does with a (nearly) full season with a team that's actually good before sending him to Bustland.
Post subject: Re: The Official Cleveland National Champions Thread
Posted: Tue October 01, 2013 11:47 pm
Future Drummer
Joined: Wed January 02, 2013 8:08 pm Posts: 2874
It's not just stat guys, Jim Brown said he thought he was "an ordinary running back." I'm still just appalled at the idea of having a top 5 pick and a top 30 pick and winding up with Richardson and Weedon. Barf.
Post subject: Re: The Official Cleveland National Champions Thread
Posted: Wed October 02, 2013 12:08 am
Site Admin
Joined: Wed December 12, 2012 10:33 pm Posts: 6932
Orpheus wrote:
It's not just stat guys, Jim Brown said he thought he was "an ordinary running back." I'm still just appalled at the idea of having a top 5 pick and a top 30 pick and winding up with Richardson and Weedon. Barf.
Jim Brown's also just one guy who's not serving in today's NFL front offices. Given the college tape that we had on Richardson, I don't think it was unreasonable for him to be drafted high.
I do agree with you that Weeden was a horrendous pick that should have been seen as horrendous beforehand. And even if Richardson does turn out fine they would have been better going with Tannehill and Doug Martin.
Post subject: Re: The Official Cleveland National Champions Thread
Posted: Wed October 02, 2013 1:16 am
Future Drummer
Joined: Wed January 02, 2013 8:08 pm Posts: 2874
Ingram has also been shit so it may just be that Bama has good lines that make RBs look really good. Regardless of what happens with Richardson the trade was a smart thing to do. They were going nowhere with him and no QB.
Post subject: Re: The Official Cleveland National Champions Thread
Posted: Wed October 02, 2013 2:14 am
Site Admin
Joined: Wed December 12, 2012 10:33 pm Posts: 6932
Orpheus wrote:
Ingram has also been shit so it may just be that Bama has good lines that make RBs look really good. Regardless of what happens with Richardson the trade was a smart thing to do. They were going nowhere with him and no QB.
It'll be smart if they can actually hit on the pick. There has been too much chaos with that organization.
Meanwhile, I'm guessing the Cleveland fans in here won't be too thrilled that we're talking about the Browns when the Indians are in the playoffs.
Users browsing this forum: No registered users and 17 guests
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum