Company told them to defraud, say latest Pilot employees to plead guilty

| July 30, 2013

pilot sign

Janet M. Welch and Michael Scott Fenwick, both Pilot Flying J employees, have pleaded guilty to one count each of conspiracy to commit mail fraud, according to court documents released this week.
Both entered their pleas Monday, and both work in sales at the truck stop chain. Pilot’s headquarters were raided in April over federal allegations that the company had been deceptively and fraudulently withholding owed fuel rebates from fleet customers.

Fenwick has been a regional sales manager with Pilot since 2008, and, according to his plea agreement, he would instruct account representative Ashley Judd (who’s already pleaded guilty to fraud charges) to reduce the amounts of fuel rebate checks owed to customers.

Welch has been a senior regional account representative in Pilot’s direct sales division since 2008 and said in her plea agreement she had been encouraged “and generally instructed by” others at the company to participate in the rebate withholding scheme.

Both her charges and Fenwick’s stem from the use of the U.S. mail system to mail fraudulently reduced rebate checks.

Welch says in her plea agreement — corroborating information in an April 18-released affidavit from the FBI — that the company held sales training meetings in November of 2012 to instruct Pilot salespeople how to defraud carriers out of fuel rebates.

Fenwick also attended the meetings and instructed other Pilot salespeople on what to do if a customer suspected them of reducing the owed fuel rebate, telling them to blame it on inside sales staff or a computer software error

The court documents do not say what the terms of either Welch’s or Fenwick’s sentencing will be, but they do say both have agreed to cooperate with enforcement when requested and to not protect others involved in the case. They’ve also agreed to testify at any trial related to the case when called upon and furnish evidence when asked.

Click here to read Welch’s plea agreement.

Click here to read Fenwick’s.

Pilot reached a settlement earlier this month with about a dozen class-action lawsuits that had been filed against it since April. The company agreed to pay each member of the class what was owed, along with 6 percent interest.

While OverdriveOnline.com strives to maintain an open forum for reader opinions, it does not welcome comments reflecting racism, vulgarity or spam. Violations of this policy can be grounds for removal of a comment or banning a user from the comments system.

  • No Reform

    When do they bring up TEFLON HASLAM on charges? He is whats wrong with trucking today…he is a CRIMINAL….out to rip off every trucker he comes in contact with. They call a horses ass like Haslam a “busineesman”.

  • No Reform

    The Pilot Mafia? His underlings are going to take the fall
    for the “DON” ?? Haslam needs to be arrested NOW!

  • Pingback: Company told them to defraud, say latest Pilot employees to plead guilty - Truckers Careers And Truckers Forum

  • No Reform

    They are starting to Roll Over on Haslam and his pals. Not long from now we should see an Indictment for Haslam.
    The Total Jackass Himself…going to theBig House!

  • johnraye

    What? You really think that Haslam will not come up as an angel for correcting all the wrongs He created at Pilot. He will pay off all the people to take the fall for him! Business will go on as usual. What money the Big companies get back will go in the Christmas fund account. The O/O leased to these so called companies will never see a dime of it. That is why you see the Big companies still doing business with the Pilot crooks.

  • dubyads

    I wonder if these fuel rebates amount to the 22 cents/gallon that Pilots’ diesel fuel is over the Mobil on 17 south in Mahwah, NJ?….Pilots’ fuel bays are always full, and the North bound Mobil there is never a wait….It’s only a mile to turn around to save 22 cents/gal