07.14.14

Pilot Flying J Reaches Agreement with Federal Government

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Rachel Albright
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615.743.9686 cell

PILOT FLYING J REACHES AGREEMENT WITH FEDERAL GOVERNMENT

KNOXVILLE, TN – Pilot Flying J has reached an understanding with the U. S. Attorney’s office, Eastern District of Tennessee, and the U. S. Department of Justice, that the company will not be prosecuted, assuming it follows the terms of the agreement, including paying a monetary penalty over the next two years and fully cooperating with the federal government’s investigation of fraudulent conduct within the company’s diesel fuel sales discount programs.

“We, as a company, look forward to putting this whole unfortunate episode behind us, continuing our efforts to rectify the damage done, regaining our customers’ trust, and getting on with our business,” said CEO Jimmy Haslam.  “We’ve been committed from the beginning of this to doing the right thing, and that remains our commitment.”

 “The past 15 months, since the federal government served a search warrant on the company’s headquarters, have been very trying for all involved,” said Aubrey Harwell, Pilot Flying J’s attorney.  “The company has cooperated fully with the government and will continue to do so.  As to its customers, the company has gone to extraordinary lengths to understand and identify any wrongdoing and make it right.”

“Under the terms of the agreement,” Harwell added, “the company has certain obligations, which it fully intends to fulfill.  We appreciate the diligence the U. S. Attorney’s office has shown in this matter.  It certainly has been no less diligent than our own internal investigation.  I believe this agreement is the result of the good intentions of both sides to do the right thing.”

The agreement, titled a “Criminal Enforcement Agreement,” is neither an indictment nor a finding of guilt.  It clearly states that the company will not be prosecuted under any current circumstances so long as the company complies with the terms of the agreement. However, individuals may still be prosecuted.

Under the agreement, Pilot Flying J also acknowledges and accepts full responsibility for any criminal conduct committed by its employees, including some personnel involved with the operation and oversight of its direct diesel fuel sales group, an approximately 90-member division of the company, which overall has 23,000 employees and 650 retail locations nationwide.

Over the two year term of the agreement, in addition to paying the monetary penalty, which the government has set at $92 million consistent with the United States Sentencing Guidelines, the company also commits to keep the government advised of the status of its internal compliance program, which it voluntarily initiated immediately following the execution of the warrant last year.

 

About Pilot Flying J

Pilot Flying J, the largest operator of travel centers in North America, is committed to making life better for professional drivers.  Headquartered in Knoxville, TN, Pilot Flying J provides professional drivers more than 65,000 parking spaces, 4,400 showers and 4,000 diesel lanes, more than 2,200 of them with DEF at the pump. 

Pilot Flying J currently is ranked No. 7 on Forbes’ list of America’s largest private companies with reported annual revenues of more than $30 billion. 

To learn more about Pilot Flying J, visit www.pilotflyingj.com.