Sentinel news reporter, Jamie Satterfield, gives a noon update on the Chattanooga Pilot Flying J fraud trial on November 27, 2017. Four pilot executives are being prosecuted for tricking truck customers with reimbursements for diesel for 5 years.
Jamie Satterfield / News Sentinel
Chief Executive Jimmy Haslam faces a map on October 16, 2006, showing where the company's travel centers are located. (Photo: Knoxville (Tenn).) News Sentinel)
CHATTANOOGA, Tenn. – Federal agents and a prosecutor presented on 19459030 at the entrance gate of Flying J flight pilot on fiscal day 2013 and asked the man to phone the executive director of his company, the former employee, said in the US District Court
Agents and Deputy Federal Prosecutor David Lewen re They recorded the call, the now former sales executive, Brian Mosher, said Tuesday.
"They asked me to make a phone call and I did it – (a) Jimmy Haslam," he testified. The agents and Assistant US Attorney David Lewen recorded the call.
"I said: 'Jimmy, we've been caught'," Mosher testified. "He said, I understand that there are people in your house."
► November 28: & # 39; cheated customers and I did it right & # 39;, former executive of Pilot Flying J says
► October 3: ] Berkshire Hathaway acquires majority share in Pilot Flying J truck stops
► March 22: Haslams is among the richest people in the world
On the same day agents with the FBI and the IRS Criminal Investigations Division launched an attack on the headquarters of Knoxville, Tennessee, but it was not clear from Mosher's testimony whether the raid had started when he was asked to call Haslam. Mosher had no knowledge of the Knoxville raid when officers arrived at his home in Iowa, where he worked.
Attorney Rusty Hardin asked Mosher what Haslam said when he was told: "They have caught us." Represents former Flying J Pilot President Mark Hazelwood on conspiracy charges for fraud linked to a scheme to defraud small trucking companies of the promised discounts.
"I said, 'Jimmy, we've been caught.' He said, 'I understand there are people in your house.'
Brian Mosher, formerly with the Pilot Flying J truck stops
"He did not ask," Caught doing what? ", Asked Hardin.  Mosher replied: "No. Immediately I transferred to Pilot Legal (lawyer)".
Mosher, who pleaded guilty along with 13 other former executives and personnel of Pilot Flying J, has been on the witness stand in the United States District Court in Chattanooga for two days. ongoing trial of Hazelwood and his subordinates Scott "Scooter" Wombold, Heather Jones and Karen Mann.
Haslam, owner of the Cleveland Browns football franchise, in addition to the private company that Forbes magazine calls the fifteenth largest private company in the United States, does not charge and has denied any knowledge of the plan. A public relations firm issued another denial statement on Haslam's behalf after Knoxville News Sentinel reported that earlier in Mosher's testimony secret recordings were heard in which Haslam was heard during meetings that included a session about refund fraud.
It was November 2012. All sales personnel were required to attend.
The training included a motivational speech by Hazelwood in the morning followed by a series of "meeting sessions," according to an agenda that came into focus. Mosher testified that sales executive John "Stick" Freeman had summoned him to head a session about defrauding trucking companies through a manual reimbursement system in which companies were promised higher discounts than those that actually they received.
Freeman also pleaded guilty and is expected to testify.
► February 13: & # 39; Whistleblower & # 39; Alleged pilot Flying J fraud cheated the federal government
► February 2016: Former Flying J pilot accused president in reimbursement scheme
What nobody knew was that the Texas seller Vincent Greco served as a mole for the FBI and the IRS and wearing a recording device during the mandatory meeting.
Recorded Mosher's training in the manual rebate fraud scheme. Mosher testified that he "believed" that Haslam attended, but Haslam's voice was not heard during that recording.
Mark Hazelwood, former president of Pilot Flying J truck stops, leaves federal court February 9, 2016, in Knoxville, Tenn., After being prosecuted. (Photo: Michael Patrick, Knoxville (Tenn.) News Sentinel)
Greco also recorded what was described on the agenda as a "recap session" organized by Hazelwood. In that recording, Hazelwood details Pilot Flying J's plan to try to take business from the National Association of Small Truck Companies offering the same type of fuel card offered by NASTC but with the promise of a deeper discount on diesel fuel.
said that the badociation's representative, David Owens, offered truck companies a discount of 5 cents per gallon under the method known as "cost plus". The calculation of an "additional cost" discount was complicated, and it was that complication that allowed Pilot Flying. The testimony of the sales staff of J was that they deceived the transportation companies into believing that they obtained better discounts than those paid.
"That's what (Owens) tells them with no idea of the cost plus five," Hazelwood said in the recording. "We're going to go to the market at four with a zero fee and we'll give you credit, you'll pay three times a week, that's going to …"
At that time, a voice identified by federal prosecutors and Mosher as Haslam He said: "It sounds like Stick's deal with Western."
That was a reference to an incident in which Freeman had been caught cheating Western Express, a truck company from Nashville. To smooth things out, Pilot Flying J agreed to pay $ 1 million to buy a disused Western aircraft.
Hazelwood said: "Yes, well, let's … introduce him to a guy by the name of Manuel."
► February 2015: Whistleblower in Pilot probe files lawsuit
► November 2014: Companies accuse Haslam of fraud Pilot Flying J
Manuel, "the testimony has shown, was a name that those involved in the fraud scheme used as a code to the manual fraud of reimbursements, a nod to the fact that some of the trucking companies targeted by the fraud were owned by Hispanics.
Until now, the speaker said: "It sounds like Stick's deal with Western," just it was identified in the judicial records as "masculine voice n. ° 1. The court proceedings on Tuesday were the first time the speaker was identified as Haslam.
Mosher previously testified that he submitted a spreadsheet to Haslam and Ha zelwood in 2008 that detailed the money he was earning for Pilot Flying J. He testified again on Tuesday that the spreadsheet focused specifically on his manual reimbursement fraud.
► October 2014: for the founder of the truck stop
] ► July 2014: Flying J pilot to pay $ 92 million, avoid prosecution
He listed the discount that transport companies had promised, to which Mosher reduced that discount without the customer knowing, and the "saving" of his admitted fraud, he won the Pilot Flying J. award.
Jurors have seen copies of similar spreadsheets during Mosher's testimony.
District Judge Curtis C Ollier will not celebrate on Wednesday because a member of the jury has an obligation, he said. That means the test will resume on Thursday.
Follow Jamie Satterfield on Twitter: @jamiescoop
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