Pilot Flying J to Pay $92 Million Penalty for Rebate Fraud
Pilot Flying J has agreed to pay a $92 million penalty to resolve the company鈥檚 criminal liability for withholding fuel rebates from customers.
鈥淭he terms of this agreement, including the significant monetary penalty and the very serious consequences if Pilot fails to comply, demonstrate quite clearly that no corporation, no matter how big, influential or wealthy, is above the law,鈥 U.S. Attorney William Killian of the Eastern District of Tennessee said in a statement.
As part of the agreement, Pilot acknowledged听that fraudulent conduct involving fuel-price discounts took place in its direct sales division and was carried out with knowledge by some management personnel.
The company also acknowledged the practice was encouraged and even taught during an annual sales training meeting at its headquarters in Knoxville, Tenn.
鈥淲e, as a company, look forward to putting this whole unfortunate episode behind us, continuing our efforts to rectify the damage done, regaining our customers鈥 trust and getting on with our business,鈥 CEO Jimmy Haslam said in a statement.
鈥淲e鈥檝e been committed from the beginning of this to doing the right thing, and that remains our commitment.鈥
In May, Pilot Flying J President Mark Hazelwood left the company. Hazelwood was in charge last year during the fuel-rebate investigation.