FBI and IRS Raid Corporate Headquarters of Pilot Flying J
According to a recent article on the Fleet Owner Magazine website, Pilot Flying J is under federal investigation. It was reported on April 17, 2013 that the Federal Bureau of Investigation (FBI) and Internal Revenue Service (IRS) raided the Knoxville, TN, corporate headquarters of Pilot Flying J as part of an ongoing investigation believed to center on unpaid customer rebates. Pilot Flying J CEO Jimmy Haslam said two search warrants were served on the company and several subpoenas were issued, including some to members of the company’s sales staff. Haslam said the company has 23 sales people and approximately 3,300 trucking companies with whom Pilot Flying J does regular business. According to Haslam, son of the company’s founder Jim Haslam, all 480 truck stops are operating normally, despite the criminal investigation. “This is a great company. It was Sunday night, it was last night, and it will be going forward,” he said. “We were all shocked by the events of yesterday…Pilot Flying J value number-one is to do the right thing all the time and we steadfastly believe we have done that.” According to Haslam, the investigation appears to be centered on, “a very insignificant number of customers and the application of rebates; that rebates that were owed to the customers were not paid. We, of course, disagree with that.” Haslam said the company is cooperating fully with the investigation. On behalf of the FBI’s Knoxville office, Marshall Stone, FBI spokesman, told WBIR-TV that the FBI could not comment on the investigation, but confirmed that it jointly involved the IRS. Haslam is not worried though, saying that, “The support we have gotten from our trucking company customers has been, candidly, overwhelming. You always wonder about something like this and the reputational hit you might take…we have reached out to almost every trucking company, and many called us last night and showed support.” According to Haslam, the investigation does not involve any state or federal tax issues. The Cleveland Plain Dealer reported that Haslam had rejoined Pilot Flying J in February after stepping down last year during his pursuit of the Cleveland Browns football team. Haslam purchased a controlling 70% interest in the Browns last summer for $1.05 billion. Haslam’s brother Bill is currently governor of Tennessee. Pilot Flying J, which currently operates over 650 travel stops and convenience stores in the USA and Canada, is one of the country’s largest private employers with revenues of about $29 billion, according to Forbes. MAY / JUNE 2013
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