The number of Pilot Flying J employees admitting their roles in an alleged fuel rebate scheme continues to grow.
On Tuesday, June 18, three more employees at Pilot Flying J pleaded guilty to conspiracy to commit mail fraud. This brings the total number to five employees within the Pilot diesel fuel sales staff who have signed plea agreements since news of the rebate scandal broke in mid-April.
Kevin Clark, regional sales manager for Pilot, faces up to five years in federal prison, up to a $250,000 fine and restitution.
According to Clark’s plea agreement, from 2009 through April, he admitted that he “deceptively withheld rebate amounts from Pilot Customers” by reducing his trucking company customers’ rebates by two to three cents per gallon “without the customers’ knowledge.”
After approving the reduced rebate amounts, Clark would then direct Ashley Judd, regional account representative, to mail the fraudulent checks to customers, the plea agreement states. Judd pleaded guilty to conspiracy to commit mail fraud in late May.
Holly Radford, a regional account representative, as well as Jay Stinnett, senior regional sales manager for Pilot, also pleaded guilty to mail fraud charges.
According to the Federal Bureau of Investigation’s affidavit about the scheme, Stinnett helped train sales staff about how to implement the alleged fuel rebate scheme. He faces up to 20 years in prison, a fine of up to $150,000 and restitution.
A criminal investigation was launched on April 15 after questions were raised concerning the company’s rebate and discount fuel programs. The Federal Bureau of Investigation and the Internal Revenue Service raided the company’s Knoxville, Tenn., headquarters, seizing computers and other documents relating to the alleged rebate fraud scheme. Several subpoenas were also served.
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