Three top executives from Pilot Flying J are headed for prison after a federal jury in Chattanooga convicted them of running a years-long scheme to steal millions from trucking companies by lying about diesel fuel discounts. Mark Hazelwood, 59, of Knoxville, Tennessee; Scott “Scooter” Wombold, 58, of Gallatin, Tennessee; and Heather Jones, 47, of Knoxville, were found guilty on multiple counts including conspiracy, wire fraud, and witness tampering following a grueling multi-month trial before Senior U.S. District Judge Curtis L. Collier.
Hazelwood, the former president of the truck stop giant, was convicted of conspiracy to commit mail and wire fraud, wire fraud in count 8, and witness tampering in count 14. Wombold, the ex-vice president, was nailed on a wire fraud count. Jones, a customer account rep, was found guilty of conspiracy to commit mail and wire fraud. The verdicts close a chapter on one of the largest white-collar fraud cases to hit Tennessee’s corporate corridor.
Inside the courtroom, prosecutors laid bare a calculated deception: sales reps promised trucking companies steep diesel fuel rebates to lure business—then quietly failed to pay out the owed discounts. The fraud wasn’t accidental—it was systemic. The goal? Crush competitors, inflate profits, and pad executive commissions. Jury testimony revealed internal emails, falsified reports, and pressure-cooker sales meetings where cheating customers was treated as standard operating procedure.
The fallout is massive. Before trial, 14 other former Pilot Flying J employees pleaded guilty to their roles in the same scheme. In July 2014, the company itself signed a Criminal Enforcement Agreement admitting that its Direct Sales group ran the fraud, causing $56 million in losses to customers. As part of the deal, Pilot Flying J paid full restitution and slapped with a $92 million penalty—money meant to punish and deter.
But the damage ran deeper than dollars. Independent truckers and small fleets—many already squeezed by thin margins—were bilked out of critical rebates they relied on to survive. The scam warped the marketplace, giving Pilot an illegal edge. Now, new safeguards in the company’s pricing agreements are supposed to prevent another meltdown, but trust, once burned, doesn’t come back easy.
Sentencing is set for June 27, 2018, in U.S. District Court, Chattanooga. Each defendant faces up to 20 years behind bars. The FBI and IRS-Criminal Investigation led the probe. Assistant U.S. Attorneys F.M. (Trey) Hamilton III and David P. Lewen, Jr. prosecuted. For the victims, justice is overdue. For Hazelwood, Wombold, and Jones, it’s about to get real.
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Key Facts
- State: Tennessee
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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