U.S. District Judge James M. Moody approved a $84.9 million settlement in the Pilot Flying J fuel rebate scandal in a Little Rock, Arkansas courtroom Monday.
KNOXVILLE - Three private homes used as home-offices were also under a warrant in connection to the Pilot Flying J fraud allegations.
Each home belongs to key people named in the affidavit filed by the FBI to obtain warrants used to search Pilot.
The Knoxville-based chain of convenience stores and truck stops led by CEO Jimmy Haslam and president Mark Hazelwood is facing fraud allegations following a raid earlier this week by FBI and IRS agents.
The affidavit, made available Thursday, sought warrants to search homes of Brian Mosher, Pilot's director of national sales, Arnold Ralenkotter, a regional sales director for Pilot, and Kevin Hanscomb, also a regional sales director.
Agents were searching for company-issued iPads and laptop computers they believed contained records linked to the fraud investigation on the organization. Two of the men, Ralenkotter and Mosher, told a confidential informant about their office environments during a February Pilot event in Florida — a conversation recounted in the affidavit.
"Working out of the house for almost 25 years," Ralenkotter was quoted in the affidavit.
"I get the best office attire known to man, a pair shorts and a t-shirt," Mosher replied.
"Sometimes on Fridays it's no shower until lunch day," Ralenkotter said.
"Oh yeah many days I don't shower," Mosher replied.
None of the men could be reached by phone Thursday.
A female who picked up at Ralenkotter's Hebron, Ky. house asked a reporter to call back Friday. Mosher's house is in Bettendorf, Iowa. Hanscomb's house is in Nashville.
The three were present at a Feb. 18 meeting in which the men, "discussed the potential for a new internal Pilot two-tiered pricing structure that would impose higher prices on less sophisticated Customers," the affidavit said. The meeting included Hazlewood and Pilot Flying J Vice President of Sales John Freeman.
Documents in the Pilot Flying J investigation
On the afternoon of Monday, April 15, 2013, the FBI and IRS searched the Knoxville headquarters of Pilot Flying J. These documents lay out federal authorities' case for the search, based on claims of rebate fraud.
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