Craig S. Morford,
United States Attorney
Lori Glenn
Hilliard Hester
Assistant U.S. Attorneys
GOODLETTSVILLE MAN CONVICTED OF FRAUD IN SALE OF HELICOPTER
Nashville, TN - July 13, 2007– Craig S. Morford, United States Attorney for the Middle District of Tennessee, announced that James Randall Jennings of Goodlettsville, Tennessee has been found guilty by a jury of two counts of interstate wire fraud, which he accomplished by means of interstate Internet communications, and an interstate facsimile transmission.
Various witnesses testified at trial held before Senior District Judge Robert Echols that in March 2002, Jennings, who was engaged in the business of buying and selling aircraft, bought a helicopter for $30,000 from a flight school in Texas. Jennings was advised by the seller that this helicopter had just under 2200 hours of flight time on it. These hours were documented by maintenance records, the aircraft’s required flight log books, and an on-board hours meter that records flight time. This particular helicopter is required by the Federal Aviation Administration (FAA) to undergo a major overhaul after reaching 2200 hours of flight time, during which various crucial parts, including the primary rotor blades that allow the helicopter to remain airborne, are to be removed and replaced with new parts. This overhaul costs between $80,000 and $90,000. Unless overhauled after 2200 hours, this helicopter is not considered airworthy or safe to fly.
Witnesses testified that shortly after buying the helicopter, Jennings advertised it for sale representing that it had been flown about 1600 hours. This false representation enabled him to ask for and obtain double the price that he had paid for the helicopter. To support this false representation, Jennings showed potential purchasers altered flight logs for the helicopter, and an on-board flight meter which reflected these lower flight hours. The fraud was discovered when a Texas man who eventually paid Jennings $65,000 for the aircraft, happened to take it to the same aircraft maintenance business that had previously maintained the helicopter for the flight school that had sold it to Jennings. Employees of the maintenance business immediately recognized the aircraft and quickly determined that the aircraft had not undergone the required overhaul, despite the hours it had been flown. They also confirmed that the logbooks had been altered and that the original hours meter had been replaced. They immediately notified the new owner and the FAA.
The jury deliberated about one hour before announcing their unanimous verdict of guilt. A sentencing date has not yet been set.
“We greatly appreciate the responsible conduct of the aviation professionals in Texas who brought this serious crime to the attention of federal and state law enforcement” stated United States Attorney Craig Morford. “Without their help, this fraud may well have gone undiscovered and could not have been successfully prosecuted. More importantly, however, the report of this defendant’s actions allowed law enforcement to terminate the very real risk of death or serious injury that the continued flight of this aircraft posed to the innocent pilots and passengers that flew in the helicopter after it left the defendant’s possession, and to the people and property over which the helicopter was being flown. This office will seek a sentence that reflects the callous disregard defendant showed for the safety of such persons, in addition to the financial benefit he received from selling this helicopter under false pretenses. ”
This matter was jointly investigated by agents of United States Department of Transportation, Office of Inspector General; the Federal Aviation Administration; and the Tennessee Bureau of Investigation. Assistant U.S. Attorneys Lori Glenn and Hilliard Hester prosecuted this case on behalf of the United States Government.