Opinion: Regarding Pilot Flying J
This Opinion piece appears in the May 6 print edition of Transport Topics. Click here to subscribe today.
Editor’s note: The following is a letter sent to the motor carrier members of American Trucking Associations by ATA President and CEO Bill Graves on May 2, 2013, regarding the ongoing investigation of alleged discrepancies in a fuel purchasing rebate program by federal authorities into Pilot Flying J.
Dear ATA Motor Carrier Member:
As you are no doubt aware from numerous media reports, it was recently revealed that Pilot Flying J (Pilot) — an allied member of American Trucking Associations — is the subject of a federal investigation into alleged fraudulent business practices. According to an affidavit filed to obtain a warrant to seize Pilot business records, the FBI and IRS have learned through current and former Pilot employees that certain individuals at Pilot conspired to defraud many of their customers of the full value of rebates they were entitled to under their diesel fuel contracts.
These are serious allegations, and, if they prove true, represent a serious breach of the trust affected motor carrier customers have placed in Pilot over the years. Pilot CEO Jimmy Haslam appears to agree, having said that “any willful wrongdoing” by any Pilot employee is “intolerable.”
ATA has reached out to Pilot to understand what steps it intends to take. Pilot has indicated that it plans to cooperate with the ongoing federal investigation. They have also begun an internal audit of their trucking company accounts in order to, in their words, “proactively address any miscalculations” they find and reimburse any discrepancies. According to their public statements, they expect this process to take four to eight weeks.
Moreover, they have engaged independent forensic accountants to do an independent audit. In addition, the Pilot Board has committed to hiring an independent investigator, reporting to the Board, to oversee their internal inquiries to ensure they are thorough and correct, which they plan to do within the next several weeks. Pilot has pledged to “diligently and aggressively figure out for [themselves] what’s going on, and if [they] find anything amiss, [they] are going to make it straight right away.”
The facts will become known over time as the federal investigation and related litigation run their course. In the meantime, it is our hope and expectation at ATA that Pilot will do whatever it takes to get to the bottom of any and all wrongdoing, to see to it that any wronged customers are made whole as quickly as possible, and to institute internal controls that will ensure fair dealing in the future with all motor carrier customers — big and small alike.
For our part, ATA will closely follow both Pilot’s internal investigation and the ongoing federal investigation. In addition, ATA will monitor any civil litigation that emerges from these allegations, with the aim of ensuring that any class-based settlement of claims adequately protects motor carrier interests; not simply lining plaintiffs’ attorneys’ pockets. For ATA, motor carrier interests are paramount. As such, ATA encourages affected members who have any concerns to review their accounts with Pilot and bring any issues promptly to their attention.
Bill Graves
President and CEO
American Trucking Associations
Bill Graves is a former two-term governor of Kansas. American Trucking Associations, Arlington, Va., is a national trade federation with affiliated associations in every state. ATA owns Transport Topics Publishing Group.
