Skip to main content

More departures from Haslam-owned truck-stop chain

By WTOP Staff

TRAVIS LOLLER
Associated Press

NASHVILLE, Tenn. (AP) — With a year-long federal fraud investigation looming over it, the huge truck-stop chain owned by the family of the Cleveland Browns owner and Tennessee’s governor is doing some housecleaning at its highest levels.

Several top executives at Pilot Flying J, including the president, abruptly left this week, more than a year after FBI agents raided the Knoxville, Tennessee, headquarters of the nation’s largest diesel retailer. Ten former employees have previously pleaded guilty to helping cheat trucking companies out of promised rebates and discounts.

Those cases and this week’s departures, observers note, could indicate that prosecutors are entering the final phase of a methodical probe that has included records suggesting Pilot CEO and Browns owner Jimmy Haslam knew of the scheme, something he denies. One expert said Haslam might be cutting ties with his senior staff in a bid to persuade prosecutors not to charge the company his father founded decades ago, one in which his brother, Gov. Bill Haslam, still holds an undisclosed stake.

Pilot President Mark Hazelwood and Scott “Scooter” Wombold, vice president of national accounts, left the company Monday, with Haslam sending a company-wide email thanking Hazelwood for his service but saying nothing about why or how he was leaving. Tuesday saw the departure of five more members of the sales team.

Dennis B. Francis, a Knoxville attorney who has worked in federal criminal defense for 40 years, said the only way this week’s departures make sense to him is if some of the people leaving are cooperating with prosecutors.

For a defendant to get a lighter sentence than federal guidelines mandate, prosecutors have to file court papers saying that person provided substantial assistance to the government. Once prosecutors have the evidence they need to convict, they no longer offer any promises of special consideration.

“They call it ‘getting on the bus,'” said Francis, who is not involved in the Pilot case. “And there’s only so much room on the bus.”

Wombold’s attorney, John E. Kelly, said in an email that his client had been “helping the company repair many customer relationships during the past 14 months. Mr. Wombold’s departure from the company is not connected to past guilty pleas entered into by former employees, and any inference that there is a connection is not accurate.”

Hazelwood’s attorney declined to comment.

Company representatives said they couldn’t comment on specific personnel moves, which took place while Jimmy Haslam was meeting with fellow NFL owners in Atlanta.

“Nothing more should be read into the events of this week than things playing themselves out,” spokesman Tom Ingram said Wednesday. “Otherwise, the company continues to go full steam ahead and business as usual, and is doing very well.”

Jimmy Haslam has denied any previous knowledge of the fraud or any personal wrongdoing. The governor has said he is not involved with operating Pilot Flying J.

Pilot agreed in November to pay out nearly $85 million to settle claims in a class-action lawsuit with 5,500 trucking companies. Several companies have filed separate lawsuits against Pilot that are ongoing.

Nashville criminal defense attorney and former prosecutor David Raybin said that, based on his observations and experience, the departure of so many managers at once indicates that criminal charges could soon be filed. And he suggested that prosecutors are aiming high.

“You don’t make a bunch of people plead guilty at the lower levels and then let the top people off with a fine,” said Raybin, who does not represent anyone in the case. “They’re potentially jailing five to 10 people. You don’t do that unless you are targeting the highest levels of the company.”

An affidavit filed last year to obtain a search warrant for Pilot headquarters states that a confidential informant told the FBI that both Hazelwood and Jimmy Haslam knew about the fraud at the company because it was discussed openly at sales meetings where both were present.

Randall Eliason, a former federal prosecutor who teaches at George Washington University Law School, said that while the sudden departures are unusual, they could mean any number of things.

For example, Pilot might be fearful that the company could be charged criminally, or the company’s board of directors may have decided that the people who have left recently were partly responsible for what happened.

“One reason the company might fire them is to say, ‘Look, we’re cleaning house. We’re getting rid of the bad people, so don’t indict the corporation,'” Eliason said.

___

Associated Press reporters Sheila Burke and Erik Schelzig contributed to this report.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote