UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF FLORIDA 

CASE NO. 22-60204-CR-RUIZ 

UNITED STATES OF AMERICA, 

V. 

ROYAL AIR MUSEUM, INC., 

Defendant. ______________ / 

FACTUAL PROFFER IN SUPPORT OF PLEA AGREEMENT 

The United States of America and the defendant agree that in this matter the United 

States would have established beyond a reasonable doubt the following facts. The parties agree 

that the factual proffer is a summary relating to the defendant's conduct and does not include 

every detail of the offense. 

The U.S. General Services Administration (GSA) administers the Federal Surplus 

Property Donation Program. GSA arranges the transfer and utilization of surplus U.S. 

Government property from other federal agencies. The distribution of surplus property to 

qualified recipients is conducted by various programs administered through GSA, including the 

Florida State Agency for Surplus Property (FLSASP). The FLSASP requests property from the 

GSA on behalf of qualified organizations. Once the qualified organization is allocated the 

property, the FLSASP then administers the distribution of the property and compliance with the 

program requirements. A qualified organization must submit an eligibility application that 

identifies the intended, permissible use of each surplus item obtained. Qualified organizations 

are then permitted to obtain the requested surplus property items only if they comply with certain 

regulations and restrictions established by GSA. These regulations include provisions which 

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prevent the rece1vmg party from selling, trading, leasing, lending, bailing, cannibalizing, 

encumbering or otherwise disposing of the items selling or encumbering the property for 

specified periods. 

The evidence in this case establishes that, between November 10, 2015 and July 27, 

2018, the Royal Air Museum, Inc. (the RAM), an otherwise qualified non-profit organization, 

acquired seven aircraft and other property through the aforesaid program, including a Learjet C21A aircraft, Serial Number 84-0111, (hereinafter referred to as "Learjet 84-0111 "); a Learjet C21A aircraft, Serial Number 84-0114 (hereinafter referred to as "Leaijet 84-0114"); a Learjet C21A aircraft, Serial Number 84-0123 (hereinafter referred to as "Learjet 84-0123"); a Beechcraft 

C-12D aircraft, Serial Number 81-23545 (hereinafter referred to as "Beechcraft 81-23545"); a 

Gulfstream C-20D aircraft, Serial Number 163 691 (hereinafter referred to as "Gulfstream 

163691 "); an X34 aircraft, Serial Number Al (hereinafter referred to as "X34 Al"); an X34 

aircraft, Serial Number A2 (hereinafter referred to as "X34 A2"); and 729 Nortel Avaya desk 

telephones (hereinafter referred to as "the ortel telephones"). Those aforesaid aircraft had an 

acquisition value to the United States of approximately $5 0 million and a fair market value of 

approximately $10 million. The RAM submitted multiple documents in acquiring these aircraft, 

including letters of intent that stated that the aircraft would be utilized by the RAM and would 

remain as museum property. According to the documents submitted, all of the aircraft were to be 

utilized for display, educational purposes and other specific uses by and at the RAM, which was 

initially located at Tri-County Airport, 1983 Tri County Airport Road, Bonifay, Florida (TriCounty Airport) and thereafter at World Jet Inc. (World Jet), a company that is located at Fort 

Lauderdale Executive Airport, 1020 NW 62nd St., Fort Lauderdale, FL (FXE). Thereafter the 

RAM sold, attempted to sell, loaned, attempted to loan, leased, attempted to lease, transferred, or 

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converted the property to the use of another who was not entitled thereto, or otherwise used the 

property in contravention of the stated purposes under which the RAM was permitted to acquire 

the property initially. 

On May 27, 2016 the RAM submitted a signed letter of intent to the FLSASP seeking 

acquisition of Gulfstream 163691. The letter of intent stated, in pertinent part, the following: 

The aircraft requested will be used to promote our organization and preservation of 

aerospace history, which includes purposes of display, exhibition and educational 

purposes. As the subject aircraft are listed with GSAexcess, it will be utilized for 

purposes of the museum and would remain as museum property subj ect to the 

terms and regulations as imposed by the GSA. 

On April 6, 2017, a representative of the RAM signed a conditional transfer document for 

Gulfstream 163691 . The conditional transfer document stated, in pertinent part, the following: 

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

Museum, Inc. (hereinafter called the Donee) that the property hereinafter described 

is required in the furtherance of the Donee's program and that such property will 

be used solely in connection with such programs and more specifically for all the 

following purpose(s): Cannibalization in accordance with the proposed program 

and plan as set forth in the Donee's 'Letter of Intent' dated June 16, 2015 as 

amended, which Expression of interest is hereby incorporated herein and made a 

part thereof, and for no other purpose, does hereby deliver, sell, assign, and 

transfer all of its rights, title, and interest in and to the following described non:. 

combat-type aircraft, aircraft engines, and propellers, AIRCRAFT, Gulfstream, C20D, Serial # 163691 , together with all engines, appurtenances, and accessories 

attached thereto (all of which are hereinafter referred to as the Property), which has 

been determined by GSA to have a fair market value of $7,400,000.00, unto the 

Donee to have and hold the property ... 

The conditional transfer document also stated the following 

... the Donee shall not sell, trade, lease, lend, bail, cannibalize, encumber, or 

otherwise dispose of the Property ... without the prior written approval of GSA. 

On April 18, 2017, Gulfstream 163691 was officially transferred from GSA and the 

FLSASP to the RAM. On April 20, 2017, the engines from Gulfstream 163691 were sold and 

transferred to Corporation 1 without the prior written approval of GSA. In July 2018, the 

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fuselage and other aircraft parts from Gulfstream 163691 were sold and transferred to 

Corporation 2 without the prior written approval of GSA. 

Date ~ 

JUAN ANTONIO GONZALEZ 

UNITED STATES ATTORNEY 

~ ---

ASSISTANT UNITED STATES ATTORNEY 

LA CHIO 

AS D STATES ATTORNEY 

I have read the Factual Proffer in Support of Plea Agreement set forth above. I believe 

that the above-stated facts set forth all the elements for the offense of Major Fraud Against the 

United States, in violation of Title 18, United States Code, Section 1031 , as charged in the 

Information. I agree with all the facts set forth in the Factual Proffer in Support of Plea 

Agreement. 

BRU E L. UDOLF 

ATTORNEY FOR ROY AL AIR 

~ RO~M, INC. 

By: MARK DANIELS 

4 

As Director, President, Secretary and 

Authorized Representative of Royal Air 

Museum, Inc. 

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