United States Attorney Richard B. Roper
Northern District of Texas

FEDERAL JURY CONVICTS
AIRCRAFT MAINTENANCE BUSINESS OWNER
OF FRAUD INVOLVING AIRCRAFT PARTS

DALLAS - Following a three-day trial before U.S. District Judge Sidney A. Fitzwater, a federal jury in Dallas has convicted John Wentzell Downs, 65, on fraud and false statements involving aircraft parts, announced U.S. Attorney Richard B. Roper. In January 2006, a federal grand jury returned a one-count indictment charging him with this offense. Downs, the former owner of an aircraft propeller maintenance business, Millennium Propeller Systems, Inc., at the Lancaster, Texas, municipal airport, faces a maximum statutory sentence of 10 years in prison and a $250,000 fine. Downs now resides in Mena, Arkansas. Since August 17, 2006, Downs has been the owner of another aircraft propeller maintenance business, Mena Aircraft Propellers, Inc., located in Mena, Arkansas. Sentencing is set for September 21, 2007.

“This investigation demonstrates that ensuring the safety of the Nation’s air transportation system remains a high priority for both the Office of Inspector General (OIG) and the Department of Transportation (DOT),” said Max Smith, DOT OIG Special Agent-In-Charge. “Working with our law enforcement colleagues, we will continue our efforts to uncover suspect unapproved parts, prevent their use, and punish those who seek to compromise the integrity of DOT’s safety program.”

The government presented evidence at trial that the Federal Aviation Administration (FAA) issued an Air Agency Certificate which authorized Millennium to operate as an approved FAA repair station and as such, was required to conduct all maintenance operation in accordance with applicable federal rules and regulations. Downs employed two certified mechanics, four non-certified mechanics, and two repairmen, however, in April 2005, Downs reduced his workforce to himself and two part-time mechanics.

On March 29, 2005, the FAA Administrator determined that an emergency existed related to safety in air commerce and that Millennium was no longer able to demonstrate the degree of care, judgment and responsibility required of an Air Agency Certificate holder. The FAA Administrator found that Millennium demonstrated a disregard for regulatory compliance which threatened aviation safety and was contrary to the public interest because Millennium repeatedly performedmaintenance without complying with manufacturers’ maintenance manuals or its operations specifications; used parts that had no history and were not segregated as to serviceability; and that on at least three occasions, Millennium performed maintenance to propellers contrary to other regulatory requirements. Based on these findings, the FAA Administrator issued an Emergency Revocation Order revoking Millennium’s FAA certification and ordered Millennium to surrender its Air Agency Certificate. On May 5, 2005, Millennium surrendered its Air Agency Certificate. Once Millennium certificate was revoked, Millennium was not authorized to act as a “repair station” for aircraft propellers.

At trial, customer Juan Fernandez of Gary, Texas, testified that on September 12, 2005, he delivered a propeller to Downs for overhaul work. Fernandez also said that he would have never left his propeller with Downs if Downs had honestly disclosed to Fernandez that Millennium’s repair station certificate was revoked. On October 5, 2005, Fernandez picked up his overhauled propeller. At this time, Downs gave Fernandez several maintenance records which had been fraudulently backdated to falsely represent that the overhaul of Fernandez’ propeller took place on March 1, 2005. Such fraudulent back-dating by Downs made it appear to FAA records inspectors that Downs performed this overhaul work prior to the March 29 revocation of Millennium’s certification.

Downs testified at trial that although the dates recorded on the maintenance records did not accurately reflect the dates Downs actually performed the overhaul of Fernandez’ propeller, Downs still claimed that he did not intend to defraud the FAA when he back-dated these records. Other witnesses and documents reflected that Downs was in financial trouble in the fall of 2005. Downs charged Fernandez $2250 for maintenance work that he was not authorized to perform.

The government also presented testimony that making false entries in aircraft maintenance records clearly affects interstate commerce, in that false maintenance records interfere with the FAA's ability to insure the safe operation of private and commercial aircraft. If the FAA is unable to effectively monitor aircraft safety, then public confidence in the safety of air travel would be undermined. Public doubts about the safety of aircraft, could result in less frequent use of both personal and commercial aviation, having negative effects on interstate commerce.

U.S. Attorney Roper praised the investigative efforts of the Department of Transportation - Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney David Jarvis.

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