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# l In The Matter Of: 

## SERVED: December 5, 2013 U.S. DEPARTMENT OF TRANSPORTATION OFFICE OF HEARINGS WASHINGTON, DC

DocketNo. OST-2013-0065 LOCAIR, INC., BRIAN L. HALL, RORY C. CREWS, and PEDRO E. PAEZ ) ) ) ) ) ) (Enforcement Proceeding) Respondents

CONSENT ORDERAND FINALJUDGMENT ·:¥ r·--) '**:.~}** {_

On April3, 2013, the Office ofAviation Enforcement and Proceedings ("Enforcement Office") served a formal complaint and notice ofenforcementproceeding onRespondent Locair, Inc., and its three officers, Respondents Mr. Brian L. Hall, Mr. Rory C. Crews (owners and officers), and Mr. Pedro E. Baez (stockholder and officer). This April 3, 2013 complaint alleged that the four Respondents failed in at least ten instances to process refund requests from consumers who purchased air transportation but did not receive the service paid for due to Locair Inc.'s unilateral cancellation ofits operations. These failures violate Regulation Z and 14 C.P.R. Part 374 and constitute unfair and deceptive practices and unfair methods ofcompetition in violation of49 U.S.C. § 41712. On August 22, 2013 the Enforcement Office and the four Respondents filed a Joint Motion for Approval ofa Proposed SettlementAgreement, in whichthey agreedto settle this action withthe issuance ofa consent order. Attached to the August 22,2013 Joint Motion was a proposed consent order. OnNovember 5, 2013 the Enforcement Office informally offered some modifications to the August 22, 2013 proposed-settlement agreement, and the Respondents agreed to those modifications. OnDecember 5, 2013 the parties appeared for an informal telephone conference, and agreedto additional language modifications for the issuance ofa consent order. There has been no hearing onthe matters alleged inthe complaint, nor has there been any evidentiary adjudication ofany matter alleged in or arising out ofthe complaint. Pursuantto14 C.P.R. §302.417(b), more than ten (10) days have elapsed since the parties informally filed,
onNovember 5, 2013, an agreement with some proposed modifications to the settlement agreement, and neither party has filed a statement in opposition to any ofthe proposed settlement terms or agreed modifications. OnDecember 5, 2013 the parties agreedto the immediate entry ofa final consent order. Without admitting or denying the violations, the Respondents agree with the Enforcement Office to resolve all issues pending before this administrative court with the issuance ofa consent orderthat directs Respondent Locair Inc. to cease and desist from future violations of49 U.S.C. §41712 and 14 C.P.R. Part 374, and which drops the allegations againstthe three individually named Respondents, Brian L. Hall, Mr. Rory C. Crews, and Mr. Pedro E. Baez. The parties also agree thatthis resolution by consent order is a deterrent to future similar unlawful practices bythe Respondent Locair, Inc., as well as other carriers, is appropriate in view ofthe nature and extent ofthe violations in question, and serves the public interest. Accordingly, pursuantto 14 C.P.R. §302.417 and the August 22, 2013 JointMotion for Approval ofa Proposed SettlementAgreement betweenthe Enforcement Office and the four named Respondents; Locair, Inc., Mr. Brian L. Hall, Mr. Rory C. Crews, and Mr. Pedro E. Baez,
as well as the modifications agreedto bythe parties onNovember 5, 2013 and December 5, 2013, it is hereby: ORDERED, ADJUDGED, AND DECREED: 1. The parties' August 22, 2013 Joint Motion for Approval ofa Proposed Settlement Agreement is granted. The terms ofthe agreement, including the modified agreed terms informally filed on November 5, 2013 and discussed bythe parties onDecember 5, 2013, are approved and reiterated in this consent order. 2. Respondent, Locair, Inc., violated 14 C.P.R. Part 374 by failing to process ina timely manner refunds for airtransportationpurchased by credit card oncancelled flights, as required bythe Consumer Credit Protection Act and Regulation Z ofthe Board ofGovernors oftheFederal Reserve System, 15 U.S.C. §§ 1601-1693r and 12 C.P.R. Part 226. 3. Respondent Locair, Inc., also engaged in an unfair and deceptive practice in violation of49 U.S.C. § 41712 by engaging inthe conduct and violations described inparagraph 1, above.4. Respondent Locair, Inc., and all other entities owned and controlled by, orunder common ownership and control with Locair, Inc., and their successors and assignees, shall immediately cease and desist from future violations ofRegulation Z, 14 C.F.R. Part 374, and 49 U.S.C. §41712. 5. Because the Respondents have refunded all monies owedto all known consumers, no civil penalty is assessed against any ofthe four named Respondents: Locair, Inc., Mr. Brian L. Hall, Mr. Rory C. Crews, and Mr. Pedro E. Baez. 6. The allegations against Respondents Mr. Brian L. Hall, Mr. Rory C. Crews, and Mr. Pedro E. Baez are dropped, and Mr. Brian L. Hall, Mr. Rory C. Crews, and Mr. Pedro E. Baez are dismissed from this action. 7. Itserves the public interest to fully resolve this action by entry ofthis consent order and final judgment. 8. This action is terminated.

Attachment: Service ListDocketNo. OST-2013-0065 ((Enforcement Proceeding)) 

### SERVICE LIST- BY U.S. MAIL 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 Clereece Kroha, Complainant's Counsel Senior TrialAttorney, Office ofAviation

Enforcement and Proceedings, C-70 U.S. Department ofTransportation 1200 NewJersey Avenue, S.E. (W96-472) Washington, DC 20590 TEL: 202-366-9041 Samuel Podberesky, Esq. Assistant General Counsel for Aviation andEriforcementProceedings U.S. Department ofTransportation 1200 NewJersey Avenue, S.E. Washington, DC 20590

Judge J. E. Sullivan US. Administrative LawJudge U.S. Department ofTransportation Office ofHearings, M-20 1200 NewJersey Avenue, S.E. (Ell-310) Washington, DC 20590 TEL: 202-366-2132 FAX: 202-366-7536 Locair, Inc., Respondent 382 N.E. 191 Street, Suite 87123 Miami, FL 33179 BrianL. Hall, Respondent ChiefExecutive Officer, Locair, Inc. 1740 Hudson Bridge Road, Suite 1012 Stockbridge, GA 30281 EMAIL: brain@bulldogmarine.biz Rory C. Crews, Respondent President, Locair, Inc. EMAIL: Rorycrews1@gmail.com Pedro E. Baez, Respondent Vice President, Locair, Inc. EMAIL: pedro@bulldogmarine.biz