The FBI have spent the last several days executing search warrants at the head office of Pilot Flying J, the United States’ biggest distributor of diesel fuel with annual revenues of $29 billion.
Pilot Flying J’s CEO is Jimmy Haslam, the man who bought the Cleveland Browns last summer. He owns the company along with his brother, Tennesse Governor Bill Haslam; their father and company founder Jim Haslam and other family members.
According to the FBI’s affidavits, submitted in federal court in Knoxville Tennessee for the purposes of obtaining the warrants, Jimmy Haslam knew of the company’s rebate fraud scheme and was present at sales meetings where the scheme was discussed.
Essentially the scheme had Pilot Flying J sales representatives offer rebates and other discounts on fuel purchased from Pilot Flying J truck stops. The contracts were signed, and the fuel purchased, but the actual rebates and discounts were never given.
This led to higher revenues for the company, and the sales representatives were rewarded with higher commissions.
At this point, Haslam has not been charged with any crime. However given the FBI affidavits, and the details in it, this may be happening in the coming weeks or months.
In a news conference earlier in the week Haslam denied any wrongdoing and has vowed to punish any employee who knowingly committed wrongdoings. He said the company would continue to cooperate with authorities and conduct its own investigation.
It is unclear how the NFL will react if Haslam is charged. League spokesman Greg Aiello declined comment on the investigation, stating, ‘We must respect the process of a federal investigation and decline comment.”
Jimmy Haslam bought the Cleveland Browns in a $1 billion deal last summer.
You can follow @RoryHarbaughNFL on twitter for all your NFL needs, and the follow the site @lastwordonsport while you are at it
Interested in writing for LastWordOnSports? If so, check out our “Join Our Team” page to find out how.
Photo Credit: article.wn.com
