Knoxville — It's not as long a delay as he wanted, but sentencing is being put off for Pilot's former president on his conviction of leading a conspiracy to cheat some diesel customers of promised fuel rebates.
U.S. District Judge Curtis L. Collier has agreed to put off Mark Hazelwood's sentencing from Aug. 22 to Sept. 26. Hazelwood's lawyers wanted 120 days.
Collier, in an order filed Aug. 7, also agreed to delay sentencing for a former vice president, Scott Wombold, and Heather Jones, who helped with sales at company headquarters in Bearden. They now face sentencing Oct. 3, a change from the original Aug. 22 date.
Hazelwood switched legal teams in the spring. Attorneys quickly began pushing for a delay.
In preparation for his sentencing and the sentencings for the other defendants, accounting experts have assessed the dollar losses to customers tied to the defendants' crimes.
The government alleges customers lost millions in promised diesel fuel rebates. Pilot paid a $92 million penalty to the government and has paid out more than $80 million in civil settlements to trucking customers.
Hazelwood is reviewing and challenging losses attributed to him -- now $21.5 million, according to records. Earlier this month, attorneys told Collier they've gotten incomplete information about the alleged losses.
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The losses tied to all defendants will factor into their punishment. The defense argues they will be a central issue at sentencing.
Hazelwood''s pre-sentence report was filed July 18; two days later a modified report was filed.
Collier notes in his Aug. 7 order that Hazelwood shouldn't be surprised that losses attributed to his subordinates would also be tabulated against him. Subsequent changes regarding estimated losses have actually benefited Hazelwood, according to Collier.
A four-month, or 120-day, sentencing continuance is too much, the judge wrote.
"The court nevertheless concludes that a one-month continuance of his sentencing hearing is in the interest of justice, giving defendant Hazelwood the benefit of the doubt, and given the amount of data involved in the offense conduct and the short amount of time between (the accounting firm's) completion of its supplemental report and defendant Hazelwood's pre-sentencing deadlines," Collier wrote.
A federal jury convicted Hazelwood, Wombold and Jones of various crimes tied to the scheme to cheat some fuel customers of promised diesel rebates.
The trial began in November 2017 and continued, with numerous interruptions until the Feb. 15, 2018, verdict.
Fourteen other former Pilot employees pleaded guilty before trial, and some testified to help the government's case.
Collier is set to sentence them at various dates from October through February.