The Great Smoky Mountain Journal
Staff Reports
Posted: Monday, January 01, 2018 12:28 PM
Four Plead Guilty In Pilot J Rebate Fraud Case
Unsealed documents previously showed the defendants were part of a conspiracy to scam trucking companies out of thousands of dollars.
In a statement released by a Pilot Flying J spokesperson, the company said was "saddened by the news of the pleas of four people who worked for Pilot Flying J acknowledging that they participated in defrauding some of our diesel fuel customers. After learning of such improper activities more than four years ago, we made whole every customer negatively affected; entered into a Criminal Enforcement Agreement with the government, which included a $92 million penalty; continued to cooperate with the investigation; and made policy, procedure and staff changes to make certain nothing like this happens again.
"It is Pilot Flying J's commitment to be a great partner to trucking companies across North America, always focusing our undivided attention on the best interests of our customers team members and business," the statement continued.
Spiewak pleaded guilty to one count of a conspiracy to commit mail fraud and wire fraud, acknowledging that he was part of an agreement to commit mail fraud and wire fraud to obtain money from around February 1, 2008, until about April 2013.
Spiewak originally was employed in Pilot's Direct Sales division from before 2008 through April 2013 as regional sales manager. He marketed the sale of Pilot diesel fuel to interstate trucking companies in his sales region.
Spiewak's punishment could result in up to 20 years imprisonment, a fine of not more than $250,000, not more than three years of supervised release and a mandatory assessment of $100, in addition to any applicable forfeiture and restitution.
Freeman also pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud. His plea acknowledged that he was part of an agreement to commit mail fraud and wire fraud to obtain money from around February 1, 2008, until about April 2013.
Freeman was employed in Pilot's Direct Sales division from before 2008 through April 2013 and held the titles of director and vice president during that time. Freeman marketed, and supervised the marketing of, the sale of Pilot's diesel fuel to interstate trucking companies.
The indictment previously found that Freeman told employees to treat the conspiracy as a poker game and that they were playing with "funny money." He didn't want to quote "get into a moral or ethical conversation."
When the Pilot Direct Sales Manual was updated and revised under Freeman, the manual explained that offering fuel discounts to trucking companies would be instrumental to expanding Pilot's market share in the truck stop business; however, it also cautioned to "remember that discounts affect our profitability negatively ...Discounts ultimately affect the P&L [Profit and Loss] on the customer, which in turn affects your commission."
In an email to Vicki Borden dated December 5, 2007, Freeman approved the inclusion of the above language.
Freeman's punishment could include up to 20 years imprisonment, a fine of not more than $250,000, not more than three years of supervised release and a mandatory assessment of $100, in addition to any applicable forfeiture and restitution.
In a plea deal, the United States agreed to move that the court dismiss a remaining count against Freeman.
Vicki Borden pleaded guilty to one count of a conspiracy to commit mail fraud and wire fraud, acknowledging that she was part of an agreement to commit mail fraud and wire fraud to obtain money from around February 1, 2008, until about April 2013.
Borden was employed in Pilot's Direct Sales division from before 2008 through April 2013 and held the title of director during that time. During 2018 through 2013, Borden assisted with the supervision of inside sales representatives involved in the case, who also worked at Pilot's headquarters in Knoxville.
Borden oversaw the updating and revision of the pilot Direct Sales Manual from December 2007 through February 2008.
Borden's punishment for her guilty plea could include up to 20 years imprisonment, a fine of not more than $250,000, not more than three years supervised release and a mandatory assessment of $100, in addition to any applicable forfeiture and restitution.
Katy Bibee pleaded guilty to one count of a conspiracy to commit mail fraud and wire fraud, acknowledging that she was part of an agreement to commit mail fraud and wire fraud to obtain money from around February 1, 2008, until about April 2013.
Bibee was employed in Pilot's Direct Sales division from before 2008 through April 2013 as a regional account representative and worked at Pilot's corporate headquarters in Knoxville. She supported other inside sales representatives involved in marketing the same of diesel fuel to interstate trucking companies. She was also supervised by Borden.
In a guilty plea, the United States agreed to move that the court dismiss a remaining count against Bibee.
Bibee's punishment could include up to 20 years imprisonment, a fine of not more than $250,000, not more than three years supervised release and a mandatory assessment of $100, in addition to any applicable forfeiture and restitution