Parker Waichman LLP is investigating a potential class action lawsuit on behalf of Pilot Flying J customers who have been allegedly cheated out of gas rebates. Pilot Flying J is the largest chain of truck stops in the United States. The CEO of the company and Cleveland Browns owner Jimmy Haslam allegedly knew about the fraud. Reports suggest that some companies have lost as much as $1 million due to the alleged scheme. The federal government has been investigating the company and alleges that Pilot Flying J has been involved in fraud for many years. If you or someone you know owns a trucking business that had a discount rebate agreement with Pilot Flying J, you may have valuable legal rights. Call Parker Waichman LLP today for a free, no-obligation evaluation of your case.
Pilot Flying J Being Investigated over Allegations of Gas Rebate Fraud
Pilot Flying J is the 5th largest private corporation in the United States. Allegedly, the travel center company has been defrauding trucking companies with whom it had a discount rebate agreement. Pilot Flying J allegedly violated this discount rebate agreement by deceptively withholding diesel fuel price rebates and discounts from customers. The federal government has investigated the company over these allegations.
On April 18, 2013, documents filed in federal court alleged that Pilot Flying J has engaged in fraud for many years in order to keep millions of dollars owed to customers in the form of gas rebates. Jimmy Haslam, who is the owner of the Cleveland Browns and CEO of the company, was allegedly aware of the fraud conducted by top sales officials. The affidavit, filed in the U.S. District Court in Knoxville, Tennessee, alleges that sales employees at the company withheld fuel price rebates and discounts from companies to increase revenue and boost their own commissions. For instance, the document said, if a customer was owed $10,000 for a rebate, Pilot Flying J would give them $7,500. According to the affidavit “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.”
The FBI and IRS used the affidavit to investigate several Pilot Flying J buildings over the alleged scheme, which appears to have taken place for seven years as of April 2013. One company has reported losing nearly $150,000 throughout that time, according to the document. Another company, Western Express of Nashville, says it was cheated $1 million.