– A federal judge on Wednesday ordered the former president of the Flying J to serve more than 12 years in a federal prison as the brain of a five-year fraud plot to increase his market share.

Judge Curtis Collier of the US District also ordered Mark Hazelwood to pay a $ 750,000 fine and spend 150 months behind bars.

"The motive was pride – its competitiveness … its desire to conquer more market share for Pilot," Collier said. "The defendant improperly pledged to use the name and reputation of the pilot … This degree of requisition … the court is not aware of any reported case in which such a situation occurred.

"Mr. Hazelwood abused Pilot's confidence and trust in him," Collier said. "The participants (in the fraudulent scheme) laughed and joked about it, they used extreme and offensive language, they used e-mail … mobile phones … the financial management system. openly to this criminal activity … law on a constant and repeated basis for half a decade. "

Collier allows Hazelwood to remain free until November, while the US Bureau of Prisons determines in which facility it will be hosted. He will remain in conditions of home detention imposed after his conviction in February.

A plot of fraud has increased its market share

Hazelwood was convicted after a four-month trial of conspiracy to commit computer fraud, electronic fraud, and tampering with witnesses.

He was the highest ranked member of Pilot Flying J, who was convicted in the plot. Two subordinates were found guilty of various crimes by his side and 14 others pleaded guilty. Two have benefited from immunity. The board of directors of Pilot Flying J has also acknowledged its criminal responsibility.

Hazelwood earned $ 26.9 million at the height of the fraudulent conspiracy – double his salary when the plan actually started. Even after her indictment in 2016, Hazelwood continued to make money with the trucking industry. He runs a trucker recruitment business, a trucking consulting company and sells himself as an agent for truckers while he is under house arrest.

Testimony from the trials showed that Hazelwood and his subordinates had used a diesel fuel reduction program that Hazelwood had created that was supposed to allow small trucking companies the same type of diesel fuel breakage.

But Hazelwood and his subordinates cut back on those rebates as the trucking companies were not aware. Prosecutors Trey Hamilton and David Lewen argued that the fraudulent conspiracy not only brought money back to the flight itself but, more importantly, attracted trucking companies to do business with Pilot.

At the beginning of the fraud program in 2008, Pilot Flying J had 300 truck stops. By the end of the program in 2013, Pilot Flying J had 475 truck stops.

Defense: the victims are not "old ladies"

Defense attorney James Walden argued that Hazelwood was not making fun of old ladies. He said the trucking companies had hardly suffered – at all.

"They are not mom and pop stores," he said. "These are companies … You have never heard of a representative of any of these clients … The victims have come out en masse to support (Hazelwood)."

At least four trucking company owners who were identified as victims of the fraudulent conspiracy – involving at least 78 companies – filed letters of support on behalf of Hazelwood.

Walden argued that Hazelwood had revolutionized the trucking and road transport industry and that he had used his wealth and time for good deeds after a modest start.

Hazel tree: I am innocent

Hazelwood denied guilt in his remarks at Collier Wednesday.

"I'm devastated, I have to get up in front of you today," he told the judge before sentencing. "I will appeal my conviction, I will proclaim my innocence, we should have had policies and procedures to prevent this, we have not done it, I am very sorry."

Hazelwood is also excused for his racist comments captured on secret recordings.

"I want to apologize to everyone for the racist remarks I made," he said. "I'm ashamed."

Attorney Hamilton stated that Hazelwood continues to earn money from truckers while disavowing his role in the fraud project. He argued that Hazelwood did not care about truckers – as he claims.

"Hazelwood's motivation was to cultivate the Pilot's gallons," said Hamilton.

Hamilton reminded Collier of secret tapes in which Hazelwood was seeking to extend the fraud system to other larger trucking companies a few months before the FBI and IRS Criminal Investigation Division broke into Knoxville headquarters. April 2013.

"He does not talk about helping his clients," Hamilton said.

Judge: Driver "suffered"

The Flying J pilot paid $ 56.5 million in compensation to trucking companies that were fraudulently sentenced. The company has granted an additional $ 85 million to these companies and more to settle or avoid lawsuits.

He also paid $ 40 million to Hazelwood to settle his employment contract when Jimmy Haslam, CEO of Pilot Flying J, fired him – a year after the April 2013 raid that ended the project. Hazelwood was secretly recorded making offensive comments about the Haslam team, Cleveland Browns, Haslam, Pilot Board members and Cleveland citizens at a meeting of business leaders.

The agreement required Hazelwood to remain silent on Hazelwood's racist comment and be solely responsible for the publication of the recordings. USA TODAY NETWORK – Tennessee, along with several media partners, has successfully pursued making them public earlier this year. Pilot Flying J also pays Hazelwood's legal bills as part of the contract settlement.

Lewen noted all the money Pilot paid when he asked Collier to hit Hazelwood with a fine in addition to a prison sentence.

"Mr. Hazelwood is not obliged to pay a red cent to a victim in this case … because the company Pilot Flying J has already reimbursed the victims in this case," Mr. Lewen said.

Collier described Pilot Flying J as a victim of the Hazelwood fraud plot.

"Driver had a good mark, but as a result of the actions of the accused … Driver suffered injury," Collier said.

Read or share this story: https://knoxne.ws/2IjTsIn