Browns Owner Accused of Attempting to Bribe Executives
Browns owner Jimmy Haslam is facing accusations from Berkshire Hathaway, as reported by the Associated Press, alleging that he attempted to bribe multiple executives of Pilot, the truck-stop chain founded by Haslam’s father. Berkshire Hathaway contends that Haslam wanted the executives to inflate the company’s profits.
The dispute stems from the sale of Pilot by the Haslam family to Berkshire Hathaway, with the specific claim being that the Haslams wanted to boost the value of the company in order to increase the price paid for the final 20 percent of the company that was sold to Berkshire Hathaway earlier this year.
Berkshire Hathaway has filed a counterclaim in response to a lawsuit alleging that the company changed Pilot’s accounting practices to decrease the value of the remaining 20 percent. The allegations include accusations that Haslam offered to personally pay bonuses to the executives that would far exceed their annual salaries, based on the price the family received for its remaining stake.
The alleged offer was reportedly made to roughly 15 employees at a dinner in March, with at least four other high-level executives being approached as well.
This is not the first time financial irregularities have been associated with Pilot. In 2013, an abrupt raid resulted in years of litigation and prosecution regarding a scam in which the company shorted customers on rebates and discounts. Pilot ultimately paid a $92 million fine, although Haslam never faced criminal charges and was not scrutinized by the league under the Personal Conduct Policy.
The ongoing legal battle between Haslam and Berkshire Hathaway has shed light on longstanding issues related to the sale of Pilot and has once again put a spotlight on the controversial history of the truck-stop chain.