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The former president of Browns' owner Jimmy Haslam's family business, Pilot Flying J, was indicted on federal charges involving rebate fraud committed against trucking companies.

(The Plain Dealer)

CLEVELAND, Ohio - The former president of Browns' owner Jimmy Haslam's family business, Pilot Flying J, was indicted on federal charges involving a massive rebate fraud committed against trucking companies, according to an indictment unsealed today.

Mark Hazelwood was charged with conspiracy to commit mail fraud, conspiracy to commit wire fraud and witness tampering. All charges stem from allegations of long-term fleecing of customers of Haslam's business, allegedly involving tens of millions of dollars.

An FBI affidavit filed in April 2013 suggested that Hazelwood and Haslam knew about the fraud; it asserted that they were in sales meetings when the scheme discussed. Haslam has denied any knowledge of wrongdoing, and he has not been charged.

Hazelwood left the company in 2014. Hazelwoods's attorney, Rusty Hardin, could not be reached for comment.

Already, 10 employees have pleaded guilty to federal charges in U.S. District Court in Knoxville, Tenn. Each has agreed to cooperate against others in the case. More charges are expected.

The company also has been sued more than 30 times in state and federal courts, and the company has paid out $85 million in settlements to trucking companies. The company also agreed to pay the U.S. Justice Department $92 million to avoid charges against the corporation.

A spokeswoman for Pilot Flying J could not be reached.

In an interview with The Plain Dealer in March, Hardin said prosecutors have not contacted his client since April 15, 2013, when federal agents raided Pilot Flying J.

"Our position has never changed,'' Hardin said then. "We didn't know anything improper was going on, and we certainly would never have condoned it. We are trying to make amends with any and all trucking companies who say they were harmed.''

The federal affidavit, written by FBI agent Robert Root, said, "The rebate fraud has occurred with the knowledge of Pilot's current President Mark Hazelwood and Pilot's Chief Executive Officer James A. 'Jimmy' Haslam III, due to the fact that the rebate fraud-related activities have been discussed during sales meetings in Knoxville, Tenn., in which Hazelwood and Haslam have been present.''

Root's affidavit accused several Pilot Flying J sales people of fleecing unsophisticated trucking companies through a companywide rebate program.

The rebate program, records show, worked like this: Trucking companies obtained discounts based on the number of gallons of diesel fuel purchased at Pilot Flying J. Each month, Pilot Flying J would send a rebate check to the trucking company. The fraud involved withholding rebates to which the businesses were entitled.