Rebate Fraud Allegation
On April 15, 2013, the headquarters of Pilot Flying J, located in West Knoxville, Tennessee, was raided by FBI and IRS agents as part of an “ongoing investigation.” On April 16, CEO Jimmy Haslam reported the investigation involved claims of failure to pay rebates to trucking customers.
On April 18, 2013, three days after the FBI/IRS raid on Pilot Flying J headquarters, an affidavit used to secure various search warrants was made public. The documents alleged that several members of the Pilot Flying J sales force, as well as company president Mark Hazelwood and CEO Jimmy Haslam, were either involved or aware of the alleged scheme. Three sales employees' private homes were also raided as part of the investigation.
On Saturday, April 20, 2013, the Knoxville News Sentinel reported that Hazelhurst, Georgia-based trucking company Atlantic Coast Carriers Inc. sued Pilot Flying J. According to the newspaper, the lawsuit, filed in Knox County Circuit Court, alleges that "Pilot Flying J has 'adopted ... and benefitted from inaccurate rebate procedures for certain clients, including Atlantic Coast and several other clients. Pilot regularly understated the amount owed to Atlantic Coast and other similar companies, promised by Pilot sales representatives as a rebate for purchase of their fuel.' " Atlantic Coast Carriers is also seeking class action status for the lawsuit.
Read more about this topic: Pilot Flying J
Famous quotes containing the words fraud and/or allegation:
“Things gained through unjust fraud are never secure.”
—Sophocles (497–406/5 B.C.)
“Generosity is a part of my character, and I therefore hasten to assure this Government that I will never make an allegation of dishonesty against it wherever a simple explanation of stupidity will suffice.”
—Lever Leslie, Baron (1905–1977)