Former Pilot Flying J President Fighting ‘Most Guilty’ Label

Defense attorneys for former Pilot Flying J president and convicted felon Mark Hazelwood are crying foul over a court-ordered list of the “most guilty” parties in the company’s fraud scheme, Knoxnews reports. The list, which included other convicted former executives and employees, ranks Hazelwood at the top. Attorneys filed motions in federal court last week challenging the government’s characterizations of their culpability in the scam.
read more »

‘Pharma Bro’ Martin Shkreli Sentenced to 7 Years for Securities Fraud

Martin Shkreli, the pharmaceutical executive known as “pharma bro” who became notorious for hiking up costs of a lifesaving drug, was sentenced to seven years in prison today for securities fraud, the Chicago Tribune reports. Shkreli cried in U.S. District Judge Kiyo Mastumoto’s courtroom as he apologized to investors for defrauding them in two failed hedge funds. In addition to his prison sentence, Shkreli was fined $75,000.
read more »

Crime, History and Humor Also in Special Issue on Evolving Legal Markets and Technology

The March Tennessee Bar Journal includes columns on criminal law, history and humor. Knoxville lawyer Wade Davies asks if a defendant should testify, looking into any research about it. Chattanooga lawyer Russell Fowler takes us back in time to the 1800s when William B. Turley, "the most brilliant judge we ever had," was on the Tennessee Supreme Court. Memphis lawyer Bill Haltom writes about an interaction that Sen. Howard Baker had with his father-in-law, Sen. Everett Dirksen. It is a lesson that is even more applicable today. This issue, the Special Issue on Evolving Legal Markets and Technology, is also packed with information examining the present and future of technology and how it affects law practice. You're going to need to know about what's happening now and what's coming.

read more »

USA Today Wins Lawsuit to Unseal Racist Tapes in Pilot Flying J Case

U.S. District Court Judge Curtis L. Collier yesterday ordered the unsealing and public release of recordings that captured Pilot Flying J’s former president using racial epithets, Knoxnews reports. Reporters from the USA Today network requested a hearing to release the recordings, made in October 2012 of former President Mark Hazelwood, in January. Hazelwood was convicted of conspiracy, wire fraud and witness tampering in a Chattanooga-based federal court in February.
read more »

Sunday Wine, Liquor Sales Bill Advances in Legislature

A bill that would allow wine and liquor sales in stores on Sundays in Tennessee advanced in the legislature today, The Tennessean reported. The House State Government Committee and the Senate State and Local Government Committee passed the bill, which would allow grocery stores to sell wine on Sundays and liquor stores to remain open.
read more »

Appeals Court Upholds Ruling that Strikes Down Residency Requirement for Liquor Store Owners

The U.S. Court of Appeals for the Sixth Circuit this week upheld a lower court ruling that found Tennessee's residency requirements for liquor store owners are unconstitutional. State law required a liquor store owner to live in Tennessee for at least two years before being able to apply for a liquor store license, and for 10 years in order to renew one.
read more »

Remington Declines to Say if Bankruptcy Will Put Existing Settlement at Risk

Remington, America's oldest gun manufacturer, filed Chapter 11 bankruptcy on Monday, sparking questions on how this will affect an agreement to repair millions of allegedly defective guns that resulted in a lawsuit. The suit began in 2010 when CNBC investigated allegations that for decades Remington covered up a deadly design defect that allows the guns to fire without the trigger being pulled. To this day, Remington denies the allegations and maintains the guns are safe.
The company said it was settling the case to avoid protracted litigation. An attorney for Remington refused to say whether the plan by America's oldest gun manufacturer to file for Chapter 11 bankruptcy protection will affect an agreement to repair millions of allegedly defective guns. "It is the company's position not to comment," said John Sherk, attorney for Remington.
An attorney representing plaintiffs in the case, J. Robert Ates, says the bankruptcy filing should be of no moment in terms of the class action case, particularly because the suit also named as a defendant E.I. du Pont de Nemours and Company, which owned Remington when the original trigger mechanism was developed. The company, which merged with Dow Chemical last year to form DowDuPont, recorded $24 billion in revenues 2016.
Under the proposed settlement - which Remington and plaintiffs have claimed could be worth upwards of $500 million - DuPont would fund only a tiny amount, covering product vouchers being offered to owners of some of the oldest Remington models. DuPont has also continuously maintained that the guns are safe.
Neither Remington nor its attorneys have indicated whether the company intends to abide by the agreement considering the bankruptcy filing. While the settlement includes a guarantee that the company will meet its financial obligations under the agreement, it does not address the possibility of a bankruptcy. The settlement is currently under appeal in the Eighth U.S. Circuit Court of Appeals.
read more »

Hazelwood, Jones Guilty of Conspiracy in Pilot Flying J Trial

A jury today found former Pilot Flying J President Mark Hazelwood and former account representative Heather Jones guilty of conspiracy to commit wire and mail fraud, Knoxnews reports. Co-defendants Scott Wombold and Karen Mann were found not guilty of conspiracy, but Wombold was found guilty of a single count of wire fraud. The group has been on trial since November over a plot to use fuel discounts to lure small trucking firms to do business with Pilot Flying J and then shorting those firms on what they were promised.
read more »

Jury in Pilot Flying J Trial Reaches Partial Verdict

The jury in the Pilot Flying J fraud trial reached a partial verdict today, but was sent home by the judge for the evening after they could not agree on one remaining count, Knoxnews reports. They will return tomorrow at 9 a.m. Earlier today, the jury sent a note to U.S. District Judge Curtis Collier that they had "reached a unanimous decision on everyone except for one count on one person." The note didn’t say which count or defendant it was referring to. Former company president Mark Hazelwood, former VP Scott Wombold and account representatives Karen Mann and Heather Jones have been on trial since November on charges of conspiracy to commit wire and mail fraud.
read more »

ABA Delegates OK Draft of Uniform Law on Virtual Currency

Delegates meeting at the ABA Midyear Meeting in Vancouver approved a draft uniform law regarding virtual currency businesses, the ABA Journal reports. Many involved with cryptocurrency “are not enamored much in the way of regulation,” according to Fred Miller, the chair of the committee at the National Conference of Commissioners on Uniform State Laws that drafted the legislation. He says, however, that there is near unanimity from advocates, business people and lawyers regarding the need for this type of legislation. “We wanted to allow some regulation and allow some experimentation and innovation as well."

read more »

TBA Gears Up for 2018 Mock Trial Tournament

The Tennessee Bar Association will host the upcoming Tennessee High School Mock Trial Tournament on March 23 and 24 in Nashville. The Mock Trial is a two-day, single-elimination bracket-style competition where 16 high schools face-off against each other in the Davidson County Courthouse. Each team is scored on their trial preparation and skills. 

We need TBA volunteers to help be bailiffs and jurors (scorers) for the event. After signing up, we will send you a Volunteer Memo with all the information you need for competition including; parking, hotel, downtown map, courthouse rules, and reimbursement information. Come be a part of the Young Lawyers Divisions’ March Madness! Feel free to contact YLD Director Stephanie Vonnahme with any questions.

To volunteer for this event, click here.

read more »

Deliberations Underway in Pilot Flying J Trial

A decision in the trial of several former Pilot Flying J executives is now in the hands of the jury, Knoxnews reports. Former company President Mark Hazelwood, former vice president Scott Wombold and former account representatives Heather Jones and Karen Mann are charged with conspiracy to commit wire and mail fraud in a five-year plot to scam smaller trucking companies. The defense made its final argument, claiming that prosecutors were trying to turn a civil issue into a more serious criminal issue, while prosecutors argued that the actions made by the defendants in their scheme were not merely “sharp business practices” or civil fraud.
read more »

Hixson Man Gets 47 Months in Prison for $2.7 Million Ponzi Scheme

Food-snack distributor Richard Alan Bazzell was sentenced to 47 months today for running a $2.7 million Ponzi scheme, the Times Free Press reports. U.S. District Judge for the Eastern District of Tennessee Harry Mattice handed down the sentence to the Hixson businessman and ordered him to undergo mental health counseling and repay $2.5 million to 22 victims. Bazzell’s scheme began in 2010 when he attempted to grow TrailSteaks, but prosecutors say he had spent all of his investors’ money by 2013.
read more »

ABA Opposes Bill Requiring Suspicious-Activity Reports by Lawyers

American Bar Association President Hilarie Bass says a proposed anti-money laundering bill would undermine attorney-client privilege and impose “burdensome and intrusive regulations” on small businesses and their legal representation, the ABA Journal reports. Bass made the statement in a letter to the Senate Judiciary Committee, adding that the ABA commends lawmakers for fighting money laundering and supports “reasonable and necessary domestic and international measures to fight these illicit activities.” The bill would require lawyers to make suspicious-activity and money-laundering reports to the government.
read more »

U.S. Attorney’s Office Supports Media Push for Unsealing Pilot Flying J Documents

Assistant U.S. Attorneys Trey Hamilton and David Lewen have filed a response to the legal effort by local media outlets to unseal a cache of court documents related to the trial of former Pilot Flying J executives, Knoxnews reports. The documents involve secret recordings made by the FBI and IRS of former Pilot Flying J President Mark Hazelwood and his subordinates making racist statements. Hazelwood and three other former employees are currently on trial for their involvement in a scheme to rip off small trucking companies with fuel discounts they never intended to pay.
read more »

15th Annual Bankruptcy Forum in Gatlinburg

The 15th Annual Tennessee Bar Association Bankruptcy Forum will take place April 27-29, 2018, at the Hilton Garden Inn in scenic Gatlinburg. This event offers 10 hours of CLE credit including 3 hours of ethics.
This high-quality program will begin on Friday with presentations on recent bankruptcy case developments in the Sixth Circuit and around the country. A faculty of prominent bankruptcy judges will be present, encouraging participants to analyze, discuss, and argue different approaches to relevant case studies.
Make plans to join us in this wonderful and relaxing setting for unique and informative presentations, while networking with attorneys of an associated practice. 
Speakers and producers include:
  • Joel Giddens, Wilson & Assoc PLLC, Memphis 
  • Lawrence Ahern III, Brown & Ahern, Nashville 
  • Paul Bonapfel, United States Bankruptcy Court - North District of GA, Atlanta 
  • James Croom, United States Bankruptcy Court for the Western District of Tennessee, Jackson
  • Laura Ketcham, Miller Martin PLLC, Chattanooga
  • Randal Mashburn, U.S. Bankruptcy Court, Middle District of Tennessee, Nashville
  • Michael McCormick, McCalla Raymer Leibert Pierce, LLC, Roswell
  • Shelley Rucker, U.S. Bankruptcy Courts for the Eastern District of TN, Chattanooga
  • Kara West, Chapter 13 Trustee, Chattanooga

For more information and to register for this event, click here.

read more »

Memphis Landlord Trying to Save Shuttering Toys 'R' Us Location

A Memphis Toys R Us is among as many as 182 stores likely to close as part of its bankruptcy reorganization plan, but a local shopping center owner will try negotiating to keep it open. The beleaguered company announced its filing of Chapter 11 bankruptcy filing last September, acknowledging that it needed to revamp its long-term debt totaling more than $5 billion.
"I was a little surprised,'' Michael Lightman said of learning that the Toys R Us made the closure list. "I thought that store was doing just fine. I'm still trying to reach the right people at Toys R Us to find out more detail,'' he said.
The company noted that some closings may be avoided if it is able to negotiate more favorable lease terms. But most of the stores listed in the documents are expected to close as Toys R Us tries to reinvent itself as a leaner, smarter retailer. "The reinvention of our brands requires that we make tough decisions about our priorities and focus," Toys R Us chief executive Dave Brandon said in a letter posted on the company's website.
Toys R Us will shrink its store fleet by about 20 percent if all planned 182 stores are closed. Lightman's location is among two planned Tennessee closures for the company. Babies R Us on Nolensville Road in Nashville is also planned for closure. A complete list of closing stores can be found here.
read more »

Director of Consumer Financial Protection Bureau Comes Under Fire After Closing Payday Lending Investigations

Mick Mulvany, director of the Consumer Financial Protection Bureau, has recently closed investigations of payday lending companies in Kansas and South Carolina, causing concerns that the Trump administration is taking a lax approach to regulations on this polemic industry.
The CFPB, formed in 2011 amidst the aftermath of the Great Recession, is tasked with making sure banks, lenders, and other financial companies treat citizens fairly. In a memo released by Mulvany, he announced a new direction for the bureau stating "We don't just work for the government, we work for the people. And that means everyone: those who use credit cards, and those who provide those cards; those who take loans, and those who make them; those who buy cars, and those who sell them. All of those people are part of what makes this country great. And all of them deserve to be treated fairly by their government. There is a reason that Lady Justice wears a blindfold and carries a balance, along with her sword."
The move has been met with consternation from critics who believe Mulvaney may have a conflict of interest due to receiving campaign contributions from a number of payday loan companies. Payday lenders gave $31,700 in 2015-16 federal campaign cycle contributions to Mulvaney, ranking him ninth among all congressional recipients from the sector, according to data analyzed by the Center for Responsive Politics. When asked whether the contributions influenced his position on the rule and could pose a conflict of interest, Mulvaney said, "I don't think so, because I am not in elected office anymore."
Tennessee, who is among 25 states the US have already passed serious legislation to regulate the functioning of payday loans, has most predatory lenders in the U.S. according to a recent report. The same report found people without 4-year college degrees, home renters, African-Americans, and those earning less than $40,000 a year are most likely to use a payday loan.
read more »

Construction Industry Faces Shortage of Workers Amid Unprecedented Growth

A recent WSMV story highlights concerns of builders in middle Tennessee regarding a shortage of construction workers. The area has seen unprecedented growth, with an estimated 75 people a day moving into the Nashville area alone.
"What used to take us about 120 days on average to build a house is now taking us 180 days plus," said Dave McGowan, the owner of Regent Homes, a locally owned home building company in Nashville. "There's a shortage of bricklayers. There's a shortage of different tradesmen from everything, from people who do our carpet work and do our floor work. All the people that really requires skill, there's a true shortage of those people," he continued.
This comes at a time when several planned, large-scale construction projects including repaving Interstate 440 and Nashville's proposed metro transit upgrade, will only further exacerbate the problem. Nashville is also on the short list of cities for Amazon's second headquarters, Amazon HQ2, an 8.1-million square foot campus that will create an estimated 50,000 new jobs for the area and a huge need for skilled construction laborers.
One way to build the workforce is through high school recruitment. Go Build Tennessee, a nonprofit comprehensive workforce development initiative that seeks to address the problem by getting teens interested in joining the construction workforce, routinely visits area schools to inform young people, parents, educators and influencers about shortages and opportunities in the various construction related trades.
"If they are able to go to trade schools and learn that skill set, they would be able to have a job," McGowan said. With only one person replacing every five leaving the construction field, Tennessee will certainly be tasked with finding new and novel ways to address these challenges.
read more »

Don't Forget: Winter CLE Blast Tomorrow!

Need CLE hours fast? We can help! The annual Winter CLE Blast is less than a day away. With this program, you can complete up to 11 hours of Dual CLE credit on your own time. Our registration desk will be open from 7 a.m. to 6:45 p.m. on Feb. 21, providing you the flexibility to create your own schedule and take as many or as few hours as you need. Payment will be determined at checkout depending on the number of hours you attend. 


  • Flexible to your schedule
  • Up to 11 Hours of CLE
  • Ethics Credits
  • Compliance CLE
  • Live Credit Hours

When: Feb. 21, registration begins at 7 a.m., CST

Where: Tennessee Bar Center, 221 4th Ave N., Nashville, TN 37219


read more »

Morgan County Man Sentenced in Scheme to Hide Millions from IRS

A Morgan County man who concocted a plot to rip off the Department of Energy and hid millions from the IRS was sentenced today to a year and a day in prison, Knoxnews reports. Senior U.S. District Judge Thomas Phillips sentenced Joseph A. Armes II, who paid family members off the books using a government contract. Armes is currently a key contractor for Google in its efforts to bring fiber optic cable to Nashville.
read more »

Tennessee Department of Revenue Reaches Agreement with Airbnb

Airbnb recently struck a deal with the Tennessee Department of Revenue to collect and remit state and local taxes on behalf of its 7,700 hosts, according to the Nashville Business Journal. This arrangement has been used in other markets to address concerns regarding tax revenue from their short-term rentals not being on par with that of their hotel competitors. Tennessee joins neighboring states of Kentucky, Missouri, Alabama, Mississippi and Arkansas as areas with similar agreements. 
This news comes as Metro Council was scheduled to vote on BL-937, an ordinance amending Title 6 and sections 17.04.060, 17.08.030, 17.16.250 and 17.16.070 of the Metropolitan Code of Laws to add a new Chapter 6.83 pertaining to a short-term rental properties advisory committee and to establish regulations regarding short-term rental properties and distinct land uses for "Short-term rental property - Owner-Occupied" and "Short-term rental property - Not Owner-Occupied." The vote, however, was commuted to Jan. 23 because of inclement weather.
The company has long been a source of controversy in the area because of various concerns of taxation, noise complaints, even sparking First Amendment debates regarding anatomically correct sex dolls. In fact, problems with Airbnb rentals have become so numerous, Nashville Mayor Megan Barry established a devoted hotline tasked with aggregating and addressing these concerns.
The new statewide tax agreement, which will take effect March 1, is the second such deal Airbnb has struck in Tennessee, following an earlier agreement with Memphis. Airbnb has touted the agreements as a revenue generator and a reason for governments to work with — not against — the company.
read more »

Join Us for the 2018 International Law Annual Forum

Make plans to join us for the 2018 International Law Annual Forum. This seminar will be held at the Tennessee Bar Center in Nashville on Feb. 15.

The forum will be produced by Terrence Olsen of Olsen Law Firm, the program will also feature presentations from James Forde of Foreign and Commonwealth Office (FCO), British Consulate General Atlanta Nadia Theodore of Consulate General of Canada, Todd Gardenhire of Tennessee Senate, Marty Ross of Volkswagen of America Inc., Billy Hoover of Southern Champion Tray, Steve Brandon of Oriental Weavers Hospitality Carpet, Dave Pomeroy of Nashville Musician Association, Allen McKendree Palmer of Palmer Global Ink, Daniel Frazier of Touring Manager and Ellie Westman Chin of Williamson County Convention & Visitors Bureau.

For more information or to reserve your spot today, click here.

read more »

Rep. Faison Files Bill Aimed at Ending Private Prison Usage in State

Rep. Jeremy Faison, R-Crosby, has filed legislation taking aim at private prison usage in Tennessee, according to the Tennessean. SB1585 proposes an amendment to TCA Title 41, Chapter 24, prohibiting contracts for the operation of prison facilities from containing occupancy level guarantees, in which the state promises to keep its prison at 90 percent capacity or pay the contractor as though the prison were 90 percent full even if it's not. Private prison opponents argue that these guarantees act as a monetary incentive for states to keep prisons full.
Faison predicts the bill will be hotly contested, as Tennessee is home to the second largest private corrections company in the United States, CoreCivic, formerly Corrections Corporation of America. The spokesman for the company, Amanda Gilchrist, recently told the Tennessean that "fewer than half of our contracts include such a provision. Those contracts that include a guarantee ensure our government partners that sufficient space to safely and securely house their offenders in the facility is available to them." 
CoreCivic has long been the center of controversy, most recently because of a report from the state Comptroller’s Office, which cites inadequate staffing and supervision of inmates, both persistent problems for the beleaguered corporation. "The U.S. Constitution says that government is supposed to carry out justice," said Faison. "Our Tennessee state Constitution says that government is supposed to carry out justice, not, 'somebody who’s trying to make money gets to carry out justice.' That's crazy."
read more »

SCOTUS Grants Review of SEC Judicial Appointment Process

The U.S. Supreme Court on Friday accepted a challenge to the appointment process for administrative law judges at the Securities and Exchange Commission, the ABA Journal reports. SEC judges are selected by the chief judge and approved by the SEC personnel office. Lucia v. SEC questions whether the judges are actually “inferior officers” under the appointments clause and subject to appointment by the president, the head of a federal agency or a court. 
read more »