Testimony Claims Hazelwood Knew Of Fraud Scheme: Report

CHATTANOOGA, TN. – Holly S. Radford was under cross-examination for hours on Tuesday in the Pilot Flying J fraud trial, before admitting two things: that what was going on within a sales division of the truck stop giant was wrong and that former President Mark Hazelwood knew about it.

However, the former Pilot Flying J regional account representative did testify in the trial that “Everyone knew about it.” Further, Radford, a former regional account representative with Pilot Flying J, testified Tuesday in U.S. District Court in Chattanooga that “it was known, and it was generally accepted … I always knew it was wrong. If you blatantly put in a different discount to deceive them, I believe that’s wrong.”

Finally, the Knoxville News Sentinel reported that she was asked by attorney Rusty Hardin, who represents Hazelwood, “Did you think Mark Hazelwood knew what was going on?” “Yes,” she said. Radford recalled a specific conversation with Hazelwood in late 2008 or early 2009 after salesman Jay Stinnett had boasted in an email of his monthly “savings” to Pilot Flying J via cheating trucking companies of $115,000 in promised diesel fuel discounts.

So far, 14 former executives and support staff at the Knoxville-based company have pleaded guilty to conspiracy to commit mail and wire fraud. Two others were granted immunity. Pilot Flying J's board of directors has confessed criminal responsibility. Pilot Flying J Chief Executive Officer Jimmy Haslam, who also owns the Cleveland Browns, has denied knowledge and is not charged. Haslam is brother to Tennessee Gov. Bill Haslam. Their family is majority owners of the company.

See the complete story at the Knoxville News Sentinel.

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