Federal Judge Curtis Collier on Wednesday, at the close of a day of testimony and legal arguments, ruled against defense motions seeking lesser penalties for former Pilot Travel Centers employees Scott "Scooter" Wombold and Heather Jones.
The judge was to hear additional arguments on Thursday seeking downward departures and variances in their behalf.
Wombold, former Pilot vice president, and Ms. Jones, an office account representative, were earlier convicted along with former Pilot president Mark Hazelwood by a Chattanooga jury. Wombold was found guilty of a single count of wire fraud. Ms. Jones was found guilty of fraud conspiracy against trucking companies.
Judge Collier said he accepted an expert witness's calculation that the loss amount attributable to actions of Wombold was $4.3 million and to Ms. Jones was $5.4 million. However, he said he believed that the amount for Ms. Jones "overstates her culpability."
He said Ms. Jones "had the great misfortune of working for the most prolific fraudster" - Brian Mosher, who dealt directly with trucking companies. Mosher and others promised rebates to trucking firms, but paid them less than was promised.
The defense played portions of secretly-recorded government tapes they said showed Wombold in a good light. In one, employee John Verble said Wombold "seems like a good person." Vince Greco, a Pilot employee who was working undercover for the government, said, "He's a very nice person."
In another Wombold said he was uncomfortable that he and others were being paid millions and "20,000 employees don't have benefits." He said if he and others made less "then we could make sure that Sally doing her 12 hours - a single mom with three kids - has benefits." He said, "I'd make a little less" to insure the benefits.
Judge Collier noted that Pilot wound up repaying the trucking firms $57 million.
Hazelwood last week was sentenced to 12 and one-half years in federal prison. He is still on home confinement in Knoxville and is to report after Thanksgiving.