Author: Vitaliy Dadalyan

Four Former Pilot Executives Plead Guilty to Rebate Fraud

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Four former Pilot employees pleaded guilty to mail fraud and wire fraud. Photo: Evan Lockridge

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Four former Pilot employees pleaded guilty to mail fraud and wire fraud. Photo: Evan Lockridge

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John Freeman, former sales VP of Pilot Flying J, pleaded guilty alongside three other former Pilot employees of mail fraud and wire fraud, making millions of dollars through fraudulent diesel rebates, reports the Knoxville News Sentinel.

The other individuals who plead guilty include former Pilot Regional Sales Manager John Spiewak, former Pilot Director of Inside Sales Vicki Borden, and former Regional Sales Representative Katy Bibee, according to the Knoxville News Sentinel.

Freeman came up with the plan to give trucking customers one diesel rebate, while surruptitiously charging them a different price, according to published reports. Spiewak oversaw the rebate contracts, while Borden monitored profits from the fraudulent rebates. Bibee negotiated the rebates with customers, the Knoxville News Sentinel reports. An investigation by the FBI and the Internal Revenue Service found that the plan to commit fraud began as early as 2008, and possibly earlier.

In October, former President Mark Hazelwood, former VP of National Sales Scott Wombold, and former regional sales representatives Heather Jones and Karen Mann will stand trial in Chatanooga, Tennessee. The guilty pleas open the possibility of Freeman, Spiewak, Borden, and Bibee testifying at October's trial, alongside 10 other former employees who also pleaded guilty, according to the Knoxville News Sentinel.

The FBI found that Pilot defrauded 5,500 customers of over $56 million. Pilot reached a settlement with authorities and customers in 2014 for $92 million and $87 million, respectively.

Related: Former Pilot Flying J Execs Take Plea Bargain in Fuel Skimming Scandal

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AAA Report Underscores Benefits of High-Tech Truck Safety Advances

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Photo: AAA Foundation for Traffic Safety 

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Photo: AAA Foundation for Traffic Safety 

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The AAA Foundation for Traffic Safety is recommending that all large trucks— both new and existing ones— be equipped with what it considers to be “cost-effective technologies that improve safety for everyone on the road.”

Each of the safety technologies endorsed by the foundation is familiar to many in trucking and has already been embraced by numerous, especially brand-name, fleet operations.

“There's no question that truck safety technology saves lives,” said Dr. David Yang, executive director of the AAA Foundation for Traffic Safety on Sept. 21. He said the foundation's new research shows that “the benefits of adding many of these technologies to trucks clearly outweigh the cost.”

The report, Leveraging Large Truck Technology and Engineering to Realize Safety Gains, examined the safety benefits and costs of installing these four advanced safety technologies in both existing and new large trucks:

Lane-departure warning systemsAutomatic emergency brakingAir disc brakesVideo-based onboard safety monitoring systems

According to the foundation, the research also revealed that:

The societal safety benefits (i.e., economic value of lives saved, injuries prevented, etc.) of equipping all new and existing large trucks with lane-departure warning and video-based onboard safety monitoring systems far outweigh the costs. Specifically, it was determined that lane-departure warning systems can prevent up to 6,372 crashes, 1,342 injuries and 115 deaths each year. Video-based onboard safety monitoring systems can prevent as many as 63,000 crashes, 17,733 injuries and 293 deaths each year. The societal safety benefits of equipping all new trucks with automatic braking or air disc brakes could outweigh costs. It was shown that automatic emergency braking can prevent up to 5,294 crashes, 2,753 injuries and 55 deaths each year and that air disc brakes can prevent up to 2,411 crashes, 1,447 injuries and 37 deaths each year.

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Gayle Robertson: President of BOLT System

Robertson and her husband began their trucking business in 2001 with three trucks.

Gayle Robertson began her career in the high-tech world of Silicon Valley. She worked for IBM, with a consulting firm, and eventually ended up in sales management. She initially didn't know anything about trucking or the transportation industry, but that didn't stop her from jumping right in.

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Kari Rihm: President & CEO of Rihm Family Companies

Rihm had a 15-year career in marketing before becoming a stay-at-home mom.

Everything was all set for John and Kari Rihm's retirement seven years ago. He was planning to sell Rihm Kenworth, a successful St. Paul, MN-based truck dealership, parts supplier and service shop that was founded by his grandfather in 1932.

They were still young, vital people; he 62, she 52. “We had a lake home we loved where we wanted to spend more time,” recalled Kari. “John loved to exercise, and I was ready to get more active physically. We planned to do a lot of volunteer work and to travel.”

Tragically, fate intervened.

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Tamera Sturgis: Independent Truck Driver

Sturgis likes to show women that driving a truck can be a fun and profitable career.

The Tamera Sturgis story, wherein a 20-something decides that the up-and-down life of a long-haul trucker is the one for her, really belongs on TV as a reality show.

Oh wait… it is.

Or was anyway—and may soon be again, with Sturgis in the starring role.

“There's something in development, but it's top secret right now,” Sturgis revealed. It would follow a successful run with husband Todd on A&E's Shipping Wars, then landing a full-time gig with Cummins after spending decades traveling America.

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