Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/187653
Logbook Western Express: Millions lost in Pilot scam withheld fuel rebates and was caught by the carrier. According to the affidavit, Freeman says Pilot was defrauding the carrier out of $450,000 a month. Carriers in class-action lawsuits reached a settlement with Pilot in July, but members of the class can opt out and sue Pilot individually. – James Jaillet (Continued on Page 70) GREAT SLEEP IS CLOSER THAN YOU THINK. TRUCK MATTRESS 7-SERIES COOL ACTIONTM GEL MEMORY FOAM Mattress • Heat dissipating gel memory foam • Luxury support and pressure point relief • Replaceable cover – antimicrobial • 30-day money back guarantee* • 10-year limited warranty* So comfortable, you'll never count these guys again.™ Text INFO to 205-289-3555 or visit www.ovdinfo.com Western Express filed a lawsuit against Pilot Flying J claiming it was cheated out of millions of dollars in Pilot's alleged fuel rebate withholding scheme and thus incurred a financial shortfall that cost it more than $73 million, according to court documents. Western Express says in the suit that it purchased 90 percent of its fuel from Pilot between 2005 and 2013 – about $1 billion worth. The Nashville, Tenn.-based truckload carrier says it was defrauded out of $2.5 million in withheld fuel rebates, causing it to not meet certain financial parameters required by its creditors and therefore costing the company $73.2 million in expenses, fees, legal costs, consulting and more debt. Western Express says in the suit, which was filed Aug. 29 in Louisiana, that in the fiscal year ending Nov. 30, 2008, it fell short of its earnings target by just less than the amount Pilot allegedly defrauded from the company. The accusations against Pilot began April 15 when federal agents raided the company's headquarters in Knoxville, Tenn. Later that week, a 120page affidavit was unsealed detailing the allegations and conversations between Pilot salespeople and FBI informants. Western Express is mentioned several times in the affidavit as a company targeted by the scheme. In a transcript of a conversation with an FBI informant in the affidavit, John Freeman, Pilot's vice president of sales, says in a three-month period in 2008 he cost Western Express about $1 million in Don't go another night without great sleep. Get one today. * See website or contact us for details. Also available, 4-series advanced memory foam mattress FACEBOOK.COM/BOSTROMSEATING TWITTER.COM/BOSTROMSEATING www.bostromseating.com • (800) 459-7328 • bostromseating@cvgrp.com October 2013 | Overdrive | 19 Untitled-10 1 Logbook_1013.indd 19 8/8/13 9:02 AM 9/30/13 8:44 PM