### BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

Friendship Airways, Inc. d/b/a Yellow Air Taxi, andWASHINGTON, D. C.

ChristopherBehnam, Individually Violations of 14 CFRPart 374 and 49 U.S.C. 

### § 41712 Enforcement Proceeding Served September26, 2014

DOT-OST-2013-0066 JudgeJ.E. Sullivan

MOTION FORLEAVE TO FILE AMENDED ENFORCEMENT COMPLAINT 

### Pursuant to sections 302.11 and 302.404(b) ofthe Department ofTransportation's Rules of Practice in Proceedings, 14 CFR Part 302, the Office of Aviation Enforcement and Proceedings (Enforcement Office) files this Motion for Leave to File an Amended Enforcement Complaint inthe above-captioned case. On April3, 2013, the Enforcement Office filed with the Department's Office ofHearings
a Notice of Enforcement Proceeding and accompanying Complaint against the Respondents, Friendship Airways, Inc., d/b/a Yellow Air Taxi ("Friendship") and Christopher Benham, individually. On June 6, 2013, the Enforcement Office filed a Motion for Default Judgment. On July 22, 2014, the Office of Hearings issued an Order "deeming well-pleaded facts admitted, reserving entry ofdefaultjudgment, and setting deadline for filing supplemental proof." In this Order, the Office ofHearings: (1) found that Friendship committed 27 violations of 14 CFRPart 374 by failing to process credit card refunds in a timely manner; (2) found that Friendship committed 27 violations of49 U.S.C. § 

### 41712 by the same underlying conduct; (3) found that2 the Enforcement Office failed to prove that Friendship or Mr. Benham violated 49 U.S.C. 

### § 41101; (4) invited the Enforcement Office to submit supplemental proof that Mr. Benham exercised direction and control over the operations of Friendship, so as to impose individual liability on Mr. Benham; (5) invited the Enforcement Office to submit additional proof in support ofits request for its proposed civil penalty of $67,500; and (6) expressed doubt that the Department could seek certain other forms ofreliefthatwere sought inthe complaint againstMr. Benham individually. The Office of Hearings set a deadline of September 26, 2014, for the Enforcement Office to file supplemental proof. On today's date, the Enforcement Office filed a document entitled "Response to Order Requesting Supplemental Proof." This document sets forth additional information establishing Mr. Benham's direction and control over the operations ofFriendship, describes the basis for the proposed civil penalty of $67,500, and explains the basis for prospective affirmative relief against Mr. Benhamindividually. The Enforcement Office believes, however, that the most appropriate means of responding to sections III and V ofthe Office ofHearings' July 22, 2014, order would be to file
an amended enforcement complaint. The two primary amendments are: (1) the complaint no longer alleges that Friendship acted without economic authority under 49 U.S.C. § 41101; and (2) the complaint no longer seeks an order directing Mr. Benham to certify annually his compliance with a cease and desist order. The Enforcement Office also wishes to amend its complaint in light of a pending bankruptcy action filed by Mr. Benham in California. As a consequence ofthe bankruptcy action, the Enforcement Office will no longer seek a monetary civil penalty against Mr. Benham individually. Pursuant to 11 U.S.C. § 362(b)(4), the3 Enforcement Office may continue to pursue non-monetary sanctions against Mr. Benham individually, despite the bankruptcy action. The Amended Enforcement Complaint amends our factual allegations and requests for relief in light of Mr. Benham's bankruptcy action and the Office of Hearings' July 22, 2014, order; adds information relating to Friendship's corporate status; corrects typographical errors; and clarifies the type and number ofviolations in this matter. The Enforcement Office submits

· that by clarifying the factual and legal allegations in the case, an Amended Enforcement

Complaint would serve the best interests oftheparties and the Office ofHearings inthis matter. WHEREFORE, the Enforcement Office respectfully requests that the Office ofHearings enter an order granting this Motion for Leave to File Amended Enforcement Complaint. The proposed Amended Enforcement Complaint is attached hereto as Attachment A.
Respectfully submitted,

Blane A. Workie Acting Assistant General Counsel for

Aviation Enforcement and Proceedings

Robert M. Gorman Senior Attorney Office ofAviation Enforcement and

Proceedings (202) 366-9350

### ATTACHMENT A



### BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS

Friendship Airways, Inc. d/b/a Yellow Air Taxi, andWASHINGTON, D. C.

ChristopherBehnam, Individually Violations of 14 CFRPart 374 and 49 U.S.C. 

### § 41712 Enforcement Proceeding

AMENDED ENFORCEMENT COMPLAINT 

### Served September26 , 2014

DOT-OST-2013-0066 JudgeJ.E. Sullivan

1. During all times relevant inthis complaint, Friendship Airways, Inc., d/b/a Yellow Air Taxi (Friendship) was an air taxi operator as defined by 14 CFRPart 298 with its principal place ofbusiness at 4201 Ravenswood Road, Ft. Lauderdale, FL 33312. 2. On September 28, 2012, the Florida Department ofState administratively dissolved Friendship as a corporation for failing to file an annual report. 3. The President, CEO, Director ofOperations, and sole owner ofFriendship was Christopher Benham, at all relevant times residing at 2680 NE 24 St., Pompano Beach, FL 33064. On information and belief, Mr. Benhamnowresides at 5061 Knightswood Way, Granite Bay, CA 95746. 4. Friendship operatedunder the direction and control ofChristopher Behnam. Mr. Benham was a central figure inthe day to day operations ofFriendship such thathis individual conduct amounted to an animating force that caused the violations described herein. See Response to Order Requesting Supplemental Proof, filed September 26, 2014, and attachments thereto. 5. OnMarch 5, 2014, Mr. Benham and his wife, Elizabeth Benham, filed a voluntary petition for bankruptcy under Chapter 7 ofthe Bankruptcy Code in the Eastern District of California (Case 14-22266). The petition lists the Department ofTransportation as a creditor holding an unsecured nonpriority claim in the amount of$60,000 for "business fine closing airline- Friendship Airways, Inc." See Notice ofUpdated Service List, filed August 8, 2014, Attachment 1 (Bankruptcy Petition), Schedule F.2
6. In orderto engage in air transportation as a direct or indirect air carrier, Friendship was required to hold economic authority at all times from the Department, either inthe form ofa certificate ofpublic convenience and necessity issued pursuantto 49 U.S.C. § 41101, or inthe form ofan exemption from the certificate requirement, such as the classification ofair taxi operators in 14 CFRPart 298. 7. According to the Federal Aviation Administration (FAA), Friendship ceased operations on May 16, 2011. 8. OnMay 24, 2011, Mr. Benham resigned as President/Director ofFriendship. 9. OnAugust 15, 2011, Friendship surrendered its air carrier certificate to the FAA. 10. On October 18, 2011, the Department ofTransportation (Department) canceled Friendship's air taxi registration because it ceased operations. 11. As an air carrier, Friendship was subject to the creditrefund requirements ofRegulation Z ofthe Board ofGovernors ofthe Federal Reserve System, 15 U.S.C. §§ 1601-1693r. 12. 12 CFRPart 226 and 14 CFR Part 374, which implement Regulation Z, establish that, withrespect to refund requests involving airline tickets purchased with a credit card, a creditor-here Friendship-musttransmit a credit statement for a passenger refund to the credit card issuer within sevenbusiness days ofreceipt offull documentation for the refund requested. 13. 49 U.S.C. § 41712 confers onthe Department authority to prohibitunfair and deceptive trade practices and unfair methods ofcompetition. 14. BetweenAugust 2010 and August 2011, Friendship failed inten instances, some of which includedpurchases ofmultiple airline tickets, to process creditrefund requests within seven business days ofreceipt offull documentation for the refund requested. 15. BetweenAugust 2010 and October 2011, Friendship failed entirely in seventeen instances, some ofwhich included purchases ofmultiple tickets, to process creditrefund requests upon receipt offull documentation for the refund requested. 16. In at least one instance referred to inparagraph 14, above, the refund was due ontickets that Friendship sold to passengers after May 16, 2011, the date it ceased operations. 17. Friendship's failure to process credit refunds entirely or withinthe period required by Regulation Z constitutes a violations of 14 CFR Part 374 and is an unfair and deceptive practice inviolation of49 U.S.C. § 41712. 18. BetweenAugust 2010 and October 2011, by failing to process creditrefund requests within sevenbusiness days ofreceipt offull documentation for the refund requested, Friendship committed 27 violations of 14 CFR Part 374.3

19. BetweenAugust 2010 and October 2011, by failing to process creditrefund requests within sevenbusiness days ofreceipt offull documentation for the refund requested, Friendship committed 27 acts ofunfair or deceptive trade practice inviolation of49 U.S.C. § 41712. 20. Upon information and belief, Friendship is a "small business concern" as defined in section 3 ofthe Small Business Act, 15 U.S.C. 

### § 632. As such, under 49 U.S.C. 

### § 46301, the Departmentmay assess Friendship and its principals civil penalties ofup to $2,500 for eachviolation ofthe Department's regulations orTitle 49. 21. Under 49 U.S.C. § 41712, the Departmentmay, upon finding that a carrier is engaged in anunfair or deceptive trade practice orunfair method ofcompetition, issue an order directing the violator to cease and desist from such conduct. 22. Under 49 U.S.C. § 46101(a)(4), the Departmentmay issue an order compelling compliance withprovisions ofPart A, Subtitle VII ofTitle 49 U.S.C. andrequirements prescribed underthat Part, including 14 CFRPart 374 and 49 U.S.C. 

### § 41712.
WHEREFORE, the Office ofAviation Enforcement and Proceedings requests the Department of Transportation to: A. Find thatFriendship, previously an air carrier, and Christopher Behnam, individually, have violated 14 CFRPart 374 byfailing to process credit refund requests withinthe periodrequired by RegulationZ ofthe Board ofGovernors ofthe Federal Reserve System, 15 U.S.C. §§ 1601-1693r and 12 CFR Part 226; B. Findthat Friendship and Christopher Behnam, individually, by engaging inthe conduct described inparagraph A, above, and by selling tickets after the date Friendship ceased operations, have engaged in anunfair and deceptive trade practice and unfair method of competitionthereby violating 49 U.S.C. § 41712; C. Order Friendship and Christopher Behnam, individually, and theirrespective successors and assigns, to cease and desist from violating 14 CFR Part 374 and 49 U.S.C. § 41712 by engaging inthe conduct described inparagraphs A and B, above; D. Assess civil penalties against Friendship inthe amount of$67,500 for the violations described inparagraphs A and B, above, pursuantto 49 U.S.C. § 46301; E. Order Christopher Behnampersonallyto cease and desist for a period of5 years from holding a managerial positionwith or an ownership stake in any carrier, foreign air carrier, or any other entity directly engaged or seeking to engage in airtransportation.4

F. Grant such otherreliefas may be appropriate.

Blane A. Workie Acting Assistant General Counsel

Aviation Enforcement and Proceedings

Robert M. Gorman Senior Attorney Office ofAviation Enforcement and

Proceedings (202) 366-9350SERVICE LIST ORIGINAL & ONE COPY U.S. Department ofTransportation Dockets Operations, M-30 West Building, Ground Floor Room W12-10 1200 NewJersey Avenue, S.E. Washington, DC 20590 ONE COPY The Honorable J.E. Sullivan,Administrative LawJudge U.S. Department ofTransportation Office ofHearings, M-20 1200 NewJersey Avenue, S.E. (E11-310) Washington, DC 20590 TEL: 202-366-2132 FAX: 202-366-7536 via: Inter-Departmental Delivery Friendship Airways, Inc. dba Yellow Air Taxi, Respondent 2680 N.E. 24 Street Pompano, FL 33064 4201 Ravenswood Road Ft. Lauderdale, FL 33312. Via: CertifiedMail, Return-ReceiptRequested Email: christopher@flyyellowairtaxi.com, beth@flyyellowairtaxi.com Christopher Behnam, Respondent 2680 N.E. 24 Street Pompano, FL 33064 Via: CertifiedMail, Return-ReceiptRequested Email: christopher@flyyellowairtaxi.com, beth@flyyellowairtaxi.com Christopher Behnam, Respondent 5061 Knightswood Way Granite Bay, CA 95746 Via: CertifiedMail, Return-ReceiptRequested