The investigation into Pilot Flying J, the company owned by the Haslam family, and their fraud scheme continues to move its way up the ladder. Jimmy Haslam, who recently purchased the Cleveland Browns, is of course the CEO of Pilot Flying J.
It is alleged that management of the company, which is the United States’ biggest distributor of diesel fuel with annual revenues of $29 billion, arranged and executed an elaborate fraud scheme to promise rebates to trucking companies and then never deliver, or deliver less than what the contracts had stipulated.
According to a report out of the Tennessean, Pilot Flying J executive Jay Stinnett has made a plea deal with Federal Investigators. Last week, Stinnett pled guilty to conspiracy to commit mail fraud. The charge carries a maximum sentence of up to 20 years in prison and a possible fine of up to $150,000 plus restitution.
It is reported that Stinnett, the senior sales director for Pilot Flying J, has told investigators that he knew he was being dishonest when he directed staff to fraudulently reduce fuel rebates due to many of Pilot’s trucking customers. He has also stated that senior management within the company also knew of the scheme and has promised to work with the Federal Bureau of Investigation and Federal Prosecutors in identifying the extent of their knowledge.
While it is not known how far up the chain of management the fraud went, it has been previously alleged (in documents used to obtain search warrants), that Jimmy Haslam was present at meetings where the fraudulent rebate scheme was discussed by Pilot Flying J executives.
All of this brings yet another legal issue to the forefront of the NFL, at a time when the Aaron Hernandez case is making headlines across the country and around the world. The concerning thing here though, is that this is not just a case of a single player gone bad, but one which alleges fraud against one of the league’s 32 owners. It will be interesting to see if and how Roger Goodell applies the league’s Professional Conduct Policy to the transgressions of one of the league’s owners.
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