UNITED STATES DISTRICT CO URT

SOUTHERN DISTRICT OF FLORIDA

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FILEDBy D.c.l

!k

C2T257- 0J22 jr

ANGEtjA CLERK.st.jjts'Jt'L(';:g. lj

S.D.OFFLA..FT.LAtJD. x)

cassxo.aa-ex-tyx t--qawllw.

18U.S.C.j1031

UNITED STATES OF AM ERICA

ROYAL AlR M USEUM ,INC.,

Defendant.

INFO RM ATION

TheUnited StatesAtlorneychargesthat,atalltimesrelevanttothislnformation:

GENERAL ALLEGATIONS

The U.S.GeneralServices Administration (GSA) administered the Federal

Surplus PersonalProperty Donation Program .GSA arranged the transfer and utilization of

surplusU.S.Governmentpropertyby otherfederalagencies.

TheFlorida StateAgency forSurplusProperty (FLSASP)wasauthorized to

receivesurplusproperty from thefederalgovernm entand to distributethatproperty to qualified

organizations.

3. The FLSASP

organizations.Once the qualified organization was allocated the property,the FLSASP then

administered distribution oftheproperty and com pliance with the progrnm requirem ents. Al1

requested property from the GSA on behalf of qualified

correspondenceregarding theproperty wasconducted between the FLSASP and the qualified

organization,oftenviaemail.

Case 0:22-cr-60204-RAR Document 1 Entered on FLSD Docket 10/05/2022 Page 1 of 9
United Statesproperty designatedasexcessand/orsurplusw asofferedandm ade

available to qualified organizationsby GSA through electronicpostingsofthe equipm enton a

web-basedsystem titledtlGsAxcess.''

A lsqualitied organization''was detined,in pertinent part,as tdgaln eligible

nonprofitorganization or institution which is exemptfrom taxation undersection 501 ofthe

lnternalRevenueCode(26U.S.C.501),forthepurposeofeducationorpublichealth(including

researchforanysuchpurposel.''Thisdefinitionincludedmuseumsatendedbythepublic.

A qualified organization obtained property from FLSASP by identifying surplus

U.S.Govenunentproperty thatitneededandthen subm ittingarequesttotheFLSASP forthose

items. A qualified organization made such requeststhrough itsauthorized representatives.A

qualitied organization m ust have subm itted an eligibility application to the FLSASP,which

identifiedthe intended use ofeach surplusitem obtained. The program did notpennitprivate

individualsorcharitiestoobtainfederalpropertyforpersonaluseorgain.

Qualitied organizationswerepennitedtoobtain therequested surplusproperty

itemsonlyifthey complied with certainregulationsestablishedby GSA and theFLSASP. The

regulationsincludedthefollowingrequirements:(a)theitemts)shalbeplacedinuse,forthe

reportedpurpose,by theorganization no laterthan 12 m onthsoftheorganization obtainingthe

itemts),(b)theitemsaretobeusedbytheorganizationforatotalofatleast60monthsbefore

theorganization isallowed to sell,trade,lease,lend,bail,cannibalize,encumberorotherwise

disposeofthe items,and (c)theorganization isto obtainpermission from GSA and/orthe

FLSASP beforeitisallowedto sell,trade,lease,lend,bail,calm ibalize,encum berorotherwise

disposeoftheitem s.

Case 0:22-cr-60204-RAR Document 1 Entered on FLSD Docket 10/05/2022 Page 2 of 9
ln theeventthata qualified organization did notuse orhandle the property as

required bytheprogram and listedin thepreviousparagraph,titleandrightto possession ofthe

propertyshall,attheoption ofGSA,reverttotheUnited StatesGovernm ent.Upon dem and,the

qualifiedorganization,asdirectedby GSA throughtheFLSA SP,mustreleasetheproperty tothe

U .S.Government.

ROYAL AlR MUSEUM ,INC.(hereinafterreferred to astheRAM '')was

consideredaqualifiedorganizationtoreceivefederalsurplusproperty.

10. Among the item sobtained by the(RAM from GSA tllrough the FLSASP wasa

LearjetC-2IA aircraft,SerialNumber84-0111,(hereinafterreferredtoast earjet84-0111'3,.a

LearjetC-2IA aircraft,SerialNumber84-0114(hereinafterreferredtoasûtlwearjet84-0114''),.a

LearjetC-21A aircraft,SerialNumber84-0123(hereinafterreferredtoasEtearjet84-0123'3.,a

BeechcraftC-12D aircraft,SerialNumber81-23545(hereinafterreferredto asûlBeechcraft81-

235455');a Gulfstream C-20D aircraft,SerialNumber 163691 (hereinafterreferred to as

kûGulfstream 163691'3;anX34aircraft,SerialNumberA1(hereinafterreferredtoas1kX34A1'');

anX34aircraft,SerialNumberA2(hereinafterreferredtoas:6X34A2'');and729NortelAvaya

desktelephones(hereinafterreferredtoasçltheNorteltelephones'').

COUNT 1

(MajorFraudAgainsttheUnitedStates,18U.S.C.j1031)

TheGeneralAllegationsarerealleged and expressly incorporatedherein asifset

forthin 9 11.

From on oraboutN ovember 10,2015 through on oraboutJuly 27,2018,in

BrowardCounty,intheSouthernDistrictofFloridaandelsewhere,thedefendant,

ROYAL AlR M USEUM ,lNC.,

3

Case 0:22-cr-60204-RAR Document 1 Entered on FLSD Docket 10/05/2022 Page 3 of 9
didknowingexecute,andattemptto execute,aschemeandartiticewiththeintenttodefraudthe

United States and to obtain money and property by m eansofmaterially false and fraudulent

pretenses,representations,and promises,in connection with a grant,contract,subcontractand

otherform ofFederalassistancevaluedat$1,000,000ormore.

TheSchem etoDefraud

Theschem eto defraud consisted ofacquiring surplusU.S.Governmentproperty

by meansoffalse and fraudulentrepresentations concem ing the intended use,placementand

location ofthatproperty,and thereafterselling,attempting to sell,loaning,attempting to loan,

leasing,attempting to lease,transfening and converting theproperty to theuse ofanotherwho

wasnotentitledthereto,and otherwiseusedin contravention ofthestatedpurposesunderwhich

the R AM was perm itted to acquire the property initially. Among the item s fraudulently

obtained by theRAM wasa LearjetC-21A aircraft,SerialNumber84-0111,(hereinafter

referredtoastûlxearjet84-0111'3.,aLearjetC-21A aircraft,SerialNumber84-0114(hereinafter

referredtoasûlsearjet84-0114'');aLearjetC-21A aircraft,SerialNumber84-0123(hereinafter

refen'ed to asûlLearjet84-0123'5)',a BeechcraftC-l2D aircraft,SerialNumber 81-23545

(hereinaûerreferredtoasçBeechcraft81-23545'');aGulfstream C-20D aircraft,SerialNumber

163691(hereinafterreferredtoastGulfstream 163691'5).,anX34aircraft,SerialNumberA1

(hereinafterreferredtoas61X34A1'');anX34aircraft,SerialNumberA2(hereinafterreferredto

as1X34A2'');and729NortelAvayadesktelephones(hereinafterreferredtoasçstheNortel

telephones'').

4. On M ay 27,2016 theR AM subm itted a signed letterofintentto the FLSASP

seeking acquisition of Gulfstream 163691. The letter ofintentstated,in pertinentpart,the

following'.

4

Case 0:22-cr-60204-RAR Document 1 Entered on FLSD Docket 10/05/2022 Page 4 of 9
Theaircraftrequestedwillbeusedtopromoteourorganizationandpreservationof

aerospacehistory,which includespurposesofdisplay,exhibition and educational

purposes.AsthesubjectaircraftarelistedwithGsAexcess,itwilbeutilizedfor

puposesofthemuseum andwouldremain asmuseum property subjecttothe

termsandregulationsasimposedbytheGSA .

5. On April6,2017,a representative ofthe RAM signed a conditionaltransfer

documentforGulfstream l63691. Theconditionaltransferdocumentstated,in pertinentpart,

thefollowing'.

..in consideration of and reliance upon the representations of the Royal Air

Museum,Inc.(hereinaftercaledtheDonee)thatthepropertyhereinafterdescribed

isrequired in thefurtheranceofthe Donee'sprogram andthatsuch property will

beused solely in connection with suchprogram sand more specifically fora11the

followingpurposets):Cannibalizationin accordancewiththeproposedprogram

and plan as setforth in the Donee's SLetter ofIntent'dated June 16,2015 as

amended,which Expression ofinterestishereby incorporated herein and madea

partthereof,and for no other purpose,does hereby deliver,sell,assign,and

transferallofitsrights,title,and interestin and to the following described noncombat-typeaircraft,aircraftengines,andpropellers,AIRCRAFT,Gulfstream ,C20D,Serial# 163691,togetherwith a11engines,appurtenances,and accessories

attachedthereto(al1ofwhicharehereinafterreferredtoastheProperty),whichhas

beendetenninedby GSA tohaveafairmarketvalueof$7,400,000.00,untothe

Doneetohaveandholdtheproperty...

Theconditionaltransferdocum entalsostatedthefollowing

. . . the Donee shallnotsell,trade,lease,lend,bail,cannibalize,encum ber,or

otherwisedisposeoftheProperty...withoutthepriorwrittenapprovalofG SA.

6. On April18,2017,Gulfstream 163691wasofficially transferred from GSA and

theFLSASP totheIG M .

OnApril20,2017,theenginesfrom Gulfstream 163691weresoldandtransferred

toCorporation 1withoutthepriorwrittenapprovalofGSA .

Case 0:22-cr-60204-RAR Document 1 Entered on FLSD Docket 10/05/2022 Page 5 of 9
8. lnJuly 2018,thefuselageand otheraircraftpartsfrom Gulfstream 163691weresold

andtransferredtoCorporation2withoutthepriorwrittenapprovalofGSA.

AllinviolationofTitle 18,United StatesCode,Section 1031.

y . *

JUAN ANT 10 GON ZALEZ

UNITED STATESATTORNEY

LA NCE D W ECCHIO

A SS STAN T UNITED STATESATTORNEY

6

Case 0:22-cr-60204-RAR Document 1 Entered on FLSD Docket 10/05/2022 Page 6 of 9
UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

UNITED STATES OF AM ERICA CASE NO .:

CERTIFICATE OF TRIA L ATTORNEYW

SupersedingCaseInformation:

New Defendants)(YesorNo)

NumberofNew Defendants

TotalnumberofNew Counts

ROYALAIR MUSEUM ,INC.,

/

Defendant.

CourtDivision(selectone)

D Miami n KeyW est L FTP

D FTL r W PB

ldoherebycertifythat:

l. Ihavecarefully considered theallegationsofthe indictment,thenumberofdefendants,thenumberofprobable

witnessesandtheIegalcomplexitiesoftheIndictment/lnformationattachedhereto.

lam awarethattheinform ationsuppliedonthisstatementwillberelieduponbytheJudgesofthisCoul'tinsetting

theircalendarsandschedulingcriminaltrialsunderthemandateoftheSpeedyTrialAct,Title28U.S.C.j3161.

lnterpreter:(YesorNo)N0

Listlanguageand/ordialect:

Thiscasewilltake 0 daysforthepartiestotry.

Pleasecheckappropriatecategoryandtypeofoffenselistedbelow:

(Checkonlyone) (Checkonlyone)

l Z 0to 5days r Petty

11 D 6to10days r Minor

Ill L l1to20days r Misdemeanor

IV 121to60days n Felony

V R 1daysandover

HasthiscasebeenpreviouslyfiledinthisDistrictCourt?(YesorNo)No

lfyes,Judge CaseNo.

7. Hasacomplaintbeenfiledinthismater?(YesorNo)No

lfyes,M agistrateCaseNo.

8. DoesthiscaserelatetoapreviouslyfiledmatterinthisDistrictCourt?(YesorNo)Yes

lfyes,Judge singhal CaseNo.21-60329-CR-SlNGHAL

9. Defendantts)infederalcustodyasof

l0. Defendantts)instatecustodyasof

ll. Rule20from the Districtof

l2. lsthisapotentialdeathpenaltycase?(YesorNo)No

13. Doesthiscaseoriginatefrom am atterpending intheN orthern Region oftheU .S.A ttorney'sOffice

priortoAugust8,2014(Mag.JudgeShaniekMaynard?(YesorNo)No

Doesthiscaseoriginatefrom amatterpendingintheCentralRegionoftheU.S.Attorney'sOffice

priortoOctober3,2019(Mag.JudgeJaredStrauss?(YesorNolYes

By:

LA EN E D aV ECCH IO

AssistantUnitedStatesAtlorney

FL BarN o. 305405

Case 0:22-cr-60204-RAR Document 1 Entered on FLSD Docket 10/05/2022 Page 7 of 9
UNITED STATES DISTRICT CO URT

SO UTH ERN DISTRICT OF FLORIDA

PENALTY SHEET

Defendant'sNam e: RoyalAirM useum,Inc.

CaseNo:

Count#:l

MajorFraudAcainsttheUnitedStates

Title 18sUnited StatesCodeeSection 1031

*M ax.Term oflm prisonm ent:

*M andatoryM in.Term ofImprisonment(ifapplicable):

*M ax.SupervisedRelease:

*M ax.Fine: $5,000,000

Count#:

*M ax.Term ofIm prisonm ent:

*M andatoryM in.Term oflmprisonment(ifapplicable):

*M ax.SupervisedRelease:

*M ax.Fine:

Count#:

*M ax.Term oflm prisonm ent:

*M andatoryM in.Term oflmprisonment(ifapplicable):

*M ax.SupervisedRelease:

*M ax.Fine:

*Refersonlyto possibleterm ofincarceration,supervised releaseand fines. ltdoesnotinclude

restitution,specialassessm ents,paroleterms,orforfeituresthatm ay beapplicable.

Case 0:22-cr-60204-RAR Document 1 Entered on FLSD Docket 10/05/2022 Page 8 of 9
AO455(Rev.01/09)Waiverofanlndictment

UNITED STATESD ISTRICT COURT

forthe

SouthernDistrictofFlorida

UnitedStatesofAmerica

V.

ROYALAIR M USEUM ,INC.

Defendant

)

) CaseNo.

)

)

)

W AIV ER OF AN INDICTM ENT

lunderstandthatlhavebeenaccusedofoneormoreoffensespunishablebyimprisonmentformorethanone

year.lwasadvisedinopen courtofmy rightsandthenatureoftheproposedchargesagainstme.

Afterreceivingthisadvice,lwaivemyrighttoprosecutionbyindictmentandconsenttoprosecutionby

information.

RovAl-AIRMusnuM,12V(1'.9y'9'%apf/öfrtgsasDirector,

President,SecretaryandAuthorizedRepresentative

BRUCEL UDOLF

Printednameofdefendant'sattorney

Case 0:22-cr-60204-RAR Document 1 Entered on FLSD Docket 10/05/2022 Page 9 of 9