Ex Pilot execs’ attorneys argue against guilt by association

CHATTANOOGA, Tenn. (AP) — Attorneys for two former executives at the Pilot Flying J truck stop chain told jurors on Tuesday that their clients shouldn’t be found guilty by association with other members of the company’s sales team who pleaded guilty to the scheme to defraud customers through diesel fuel rebates.

The rebate scam caused the company to pay a $85 million settlement to jilted customers and a $92 million penalty to the government. Pilot is controlled by the family of Cleveland Browns owner Jimmy Haslam and Tennessee Gov. Bill Haslam, who have denied any prior knowledge of the scheme and have not been charged.

Defense attorneys presented their opening statements on behalf of former Pilot President Mark Hazelwood, former vice president Scott “Scooter” Wombold and two former saleswomen, Heather Jones and Karen Mann, on the second day of the trial Tuesday. Federal prosecutors have said some of the 14 former employees who pleaded guilty will testify against their onetime Pilot colleagues.

“What motivates them on the witness stand?” said Wombold attorney John Kelly. “It used to be money; now it’s something a lot more important.”

Kelly said his client did not participate in the scheme, and even saw his professional prospects dim as others who were directly involved in the fraud rose to positions of prominence within Pilot.

Wombold may have had knowledge about the illegal practices, but did not engage in them, Kelly told the jury.

“He didn’t like it, didn’t do it, didn’t encourage it,” Kelly said.

“The government’s case against Mr. Wombold is guilt by association,” he said. “You need more to find someone guilty of a crime. Knowledge is not enough.”

The attorneys for Wombold and Hazelwood noted that both men came from modest means in their Ohio hometowns, each working their way up from truck stop jobs to become senior managers at Pilot. Both took immense pride in helping the company become the nation’s largest diesel retailer, and had no interest in damaging the company by hurting its customers, they said.