"'I take responsibility for what happens at PFJ as the guy at the top of the shop, but I was absolutely not aware of any of this,' Haslam said. 'As soon as we found out there was an issue, we immediately began taking an aggressive stance in finding out what happened, No. 1, and righting the ship, No. 2.'" (http://espn.go.com/nfl/story/_/id/9281639/cleveland-browns-owner-jimmy-haslam-absolutely-not-aware-pfj-issues)
Haslam found out what happened to the Browns, No 1 -- they stink -- and righted that ship, No. 2. They rose from 4-12 in 2011 to 5-11 in 2012.
"Haslam said a review under way by auditors shows that about 250 trucking companies out of 400 that were on a 'manual' fuel rebate program may have problems with their rebates. That's out of about 5,000 trucking company customers served by Pilot Flying J. He called the initial assessment 'a little fluid' because auditors are still digging into what transpired." (http://www.cleveland.com/business/index.ssf/2013/05/pilot_flying_js_jimmy_haslam_t.html)
The Pilot CEO, brother of the Tennessee governor, and Browns' majority owner was said to be a leader expected to be closely involved with the team's operations. "'Unfortunately, there were some things that happened a couple of levels below me' at Pilot Flying J that he missed. 'It's a blip. It may be a substantial blip. But in no way, shape or form does it affect my ownership of the Browns,' he said."
Nevertheless, the franchise continues to consider a name change to the Cleveland Blips.
FBI and IRS agents who descended on Pilot Flying J's headquarters in Knoxville on April 15 were looking for evidence of rebate fraud that allegedly took place at the company for more than five years, according to a search warrant affidavit used in the raid.
There was no word on whether any Browns' ticket holders were claiming fraud.
"An embarrassed Haslam said that his company had been sullied by the claims, and he called for a series of changes in the way Pilot Flying J does business."
The Browns, however, will continue the same style of play: rotten.
"The affidavit indicates rebate fraud was widespread and used to boost sales commissions and company profits. It lists 35 current or former Pilot employees that it said are or were involved in supervising or supporting the sale of diesel fuel. It doesn't suggest that all them were involved in illegal activity. But it says Haslam and Pilot President Mark Hazelwood knew about shortchanging customers because they attended sales meetings where it was discussed."
Former FBI Director Louis Freeh's firm has been hired by trucking companies suing Haslam's Pilot Flying J. Freeh's firm last year issued a 267-page report on Penn State's handling of the Jerry Sandusky child sex abuse scandal. "A Pilot spokesman said the company had no comment on who was involved in the lawsuit." (http://aol.sportingnews.com/nfl/story/2013-05-15/louis-freeh-jimmy-haslam-fbi-investigation-pilot-flying-j-cleveland-browns)
"(Haslam) asked trucking customers to stick by the ... company, saying it needed their business, even though Pilot Flying J's business had stabilized. The company's banks have been cooperating with Pilot Flying J, he said, but some of the company's oil suppliers had sought 'reduced terms,' meaning they had sought reduced turnaround time for payments." (http://online.wsj.com/article/SB10001424127887324767004578486930489848880.html)
The Browns' performance also has stabilized. They haven't had a winning season since 2007 and haven't won a playoff game since 1994. The last time they won two playoff games in the same year was 1950. Now that's stability!
I am keeping my tongue firmly in my cheek. My research convinces me that Pilot had some out-of-control managers that enjoyed ripping off customers. Haslam needs to take swift action to minimize the effects of this crisis. That means cooperating with outside agencies, investigating internally, and replacing those responsible for withholding rebates.
Fortunately, Pilot employees with poor images of their company, need only wait until September and the start of the Browns' season to give them something to laugh about. Go Steelers!
