Former Pilot President Hazelwood Was Making Almost $27 Million By End Of Fraud

Thursday, January 11, 2018

Former Pilot Travel Centers President Mark Hazelwood was making almost $27 million by the end of the fraud period, it was testified Thursday at Federal Court in Chattanooga.  

Claudine Whaley, Pilot senior payroll manager, said Hazelwood had a contract paying him three and one half percent of Pilot's after-tax net earnings. 

Hazelwood is on trial, along with Scott Wombold, Heather Jones and Karen Mann, on fraud charges. 

Ms. Whaley said Hazelwood elected each year to receive all of the money he was due.  

He was paid almost $14 million in 2008, and it was above $15 million in 2009.  

The Hazelwood pay was $12.2 million in 2010 and $11.2 million in 2011 before jumping to $26,938,529 in 2012.  That was the year before federal agents raided the Pilot headquarters in Knoxville. 

A large part of his pay was a "growth partner bonus." 

Defense Attorney Rusty Hardin said Hazelwood started with Pilot in 1985 and had his first pay agreement in 1988.  He said Hazelwood would "sit down with Jimmy Haslam every 10 years and work out a new agreement." Attorney Hardin said a factor in the "extraordinary jump" in Hazelwood's pay in 2012 was Haslam's purchase of the Cleveland Browns.  He said there was a large distribution to certain Pilot employees in connection with that deal. 

Ms. Whaley said Wombold was paid $522,887 in 2008.  His pay went to $722,468 in 2009.  After a drop in 2010, it was $720,744 in 2011.  

Wombold in 2012 was paid $1,156,344.  

Wombold's pay included regular commissions, including $357,130 in 2012.  

Ms. Whaley said Ms. Jones and Ms. Mann also got commissions based on sales.  

Ms. Jones was paid $68,325 in 2008 and rose to $115,348 by 2012.  Her commission in 2012 was $61,283.

Ms. Mann made $92,076 in 2008.  

She rose to $117,373 in 2012, including a commission of almost $68,000. 

Ms. Jones and Ms. Mann were "inside girls" who worked via phone with the salesmen out in the field. 

 


New Book Chattanooga In Old Photos Now Available At Zarzours

The new book Chattanooga in Old Photos, sponsored by Chattanoogan.com, is now available at Zarzours Restaurant on the Southside. The limited edition of 800 copies is printed by College Press of Collegedale. It is the fourth book in the collection called the Chattanooga Photo Books made possible by Chattanoogan.com. The others are The Remarkable Stokes Collection, Railroads ... (click for more)

Man Mad About Lunch Meat Being Eaten Chases Roommate With Knife

A man who said he became very angry when he found that his roommate had eaten his lunch meat from his fridge said he began chasing him with a knife. The roommate, Jeffry Conley, picked up a brick and knocked 48-year-old William O. Brown down. It was Brown who as charged by police with aggravated assault. The incident happened on Monday at 5701 Garret Dr. Police said ... (click for more)

Drink Up, Chattanooga

I attended the meeting to discuss the placement of the sewage treatment plant at the Cambridge Center in Ooltewah today. My problem with the meeting (aka) dog and pony show, is that the meeting started out with the agenda of the Ooltewah Community Council.  After living in this area for 45+ years I have never heard of this group.  I would like for someone to answer ... (click for more)

Roy Exum: Dear Faux Pelini

It has been my experience that of all the tribes and herds of different people on earth, sports writers are among the funniest people of all. Oh, there isn’t anything real sexy about Villanova beating Georgetown or a baseball player hitting for the cycle. Now, if a player hits a single, double, triple and homer in that order, that’s “a natural cycle,” and that is kind of fun to ... (click for more)

Powerful Loretto Smacks Sale Creek, 3-1, For Class 1A State Volleyball Title

MURFREESBORO, Tenn. – Loretto ruined what could have been a nice little celebration for Sale Creek on Thursday at the TSSAA Class 1A state volleyball tournament at Middle Tennessee State University. Sale Creek (40-8), appearing in their fourth tournament and the title match for the first time, were victimized by a constant offensive attack and the potent Lady Mustangs rolled ... (click for more)

Briarcrest Beats Baylor In State Volleyball

MURFREESBORO, Tenn. – Baylor and Briarcrest have played in the last three Division II, Class AA state volleyball championship matches and the Lady Saints have now won two, including Thursday’s 3-1 victory at MTSU’s Murphy Center. The Lady Saints have an outstanding team with a roster of outstanding players.   The same can be said for the Lady Red Raiders, but Briarcrest ... (click for more)