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Bloomberg: BCI Aircraft Leasing Owner Guilty in $50 Million Fraud Case

March 15, 2012, 08:15 AM
Filed Under: Fraud

Bloomberg reported that BCI Aircraft Leasing Inc. and its principal, Brian Hollnagel, were found guilty by a federal court jury of engaging in a fraudulent $50 million financing scheme, Chicago U.S. Attorney Patrick Fitzgerald said. He faces as long as 30 years imprisonment on each wire- fraud count, plus a $1 million fine and as long as 20 years in prison for obstruction.
According to the report, Hollnagel and his business were found guilty of six wire fraud counts and one count of obstructing a U.S. Securities and Exchange Commission probe. Jurors deadlocked on a second obstruction count.

“Hollnagel and BCI raised or otherwise obtained more than $50 million, commingled those funds and misappropriated some of the funds for their own use,” Fitzgerald said. They also provided false information in connection with an SEC lawsuit, he said.BCI had been a provider of aircraft to U.S. Airways Group Inc. and Southwest Airlines Co.The SEC sued in 2007, alleging the business was a Ponzi scheme in which early investors were repaid with money taken from those who followed. 

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