Timeline of events - WSMV Channel 4

Timeline of events

The timeline for the federal investigation into the Pilot/Flying J Company.

May 2011 A whistleblower at Pilot goes to the FBI, saying that another company employee has confided in him that the company was defrauding its' own customers of pre-negotiated rebates they were to have received monthly based on fluctuating diesel costs
June 2011

That whistleblower agrees to wear a wire for FBI agents, and gain more detailed information from the original source about specifically how the fraud is committed

During those conversations, it is revealed that Pilots V.P. of Sales and National Sales Director were defrauding customers by withholding monthly rebates customers should have received. During those conversations, it is also revealed that a former Regional Sales Manager might have been aware of the fraud, yet failed to report it.

Oct. 2, 2012 After 17 months of investigating, FBI agents contacted that former Regional Sales Mgr., Cathy Giesick, who confirmed these allegations and agreed to assist with the investigation, if granted immunity. Giesick says the V.P. of Sales was intentionally withholding rebates, not only to increase the company's profitability, but to also inflate his own sales commissions.

Giesick went on to describe the mechanics of this elaborate scheme, which according to her, included Regional Account Representatives, who allegedly mailed these fraudulent checks to Pilot customers. She says she was encouraged to participate in this fraud, and it's what eventually prompted her to leave the company

Oct. 4, 2012 Two days after receiving this information, the FBI reaches out to the original source of this information, a man who currently worked as a Pilot Regional Director of Sales. He agrees to cooperate with the investigation, and cites specific dates and names of customers who had allegedly been defrauded.

Whistleblower #2 voluntarily admits that Pilot President Mark Hazelwood and CEO Jimmy Haslam were present during sales meetings in which the rebate fraud was openly discussed, and provided agents with e-mails and spread sheets he had intentionally saved in the event that he was ever contacted by law enforcement.

Facts listed in court records by FBI to show probable cause to obtain a search warrant.

Notes from the Investigation

• One of the Pilot customers that reportedly questioned whether they were receiving the correct amount of money in rebates is a company called W.N. Morehouse Trucking out of Omaha, NE

• A former regional manager for Pilot told the FBI that in one case, a company that was to have received a $10,000 rebate one month, only received a check for $7,500

• JKC, Unlimited Trucking and CDN Logistics are a few of the Pilot customers that were specifically identified as being defrauded

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