Aircraft Rebuilt With Damaged And Defective Parts

The owner of a western Missouri helicopter salvage and repair operation was sentenced in federal court this month for fraudulently reselling improperly repaired aircraft.

US District Judge Gary A. Fenner fined Robert A. Schlotzhauer of Lee's Summit $550,000 plus $63,854 in restitution to Rainbow Air Inc. The court ordered the liquidation of any and all assets involved in the maintenance, repair or rebuilding of aircraft by Falcon Helicopter Inc., and Lee's Summit Turbine, LLC, Schlotzhauer's businesses.

Judge Fenner also sentenced Schlotzhauer, 68, to 12 months' home confinement, ordered the surrender of his FAA repair certificates, and forbade him from further participation in the business of maintaining, repairing, or rebuilding aircraft, the Lee's Summit Journal reported.

"Schlotzhauer recklessly jeopardized the lives of pilots and passengers through this fraud scheme," said John F. Wood, United States Attorney for the Western District of Missouri.

"In order to boost his own profits, he flouted federal requirements for inspecting and repairing the damaged helicopters that he sold," Wood said. "He now faces a stiff fine and the loss of his business, but we are just thankful there were no injuries or fatalities as a result of this scheme."

Schlotzhauer's scheme involved purchasing damaged helicopters, then repairing and rebuilding them with parts that were not properly inspected or certified to FAA standards.

In 2001, Schlotzhauer purchased two wrecked McDonnell Douglas 369E helicopters for a total of $65,650, installed parts from one into the other, and then sold the rebuilt aircraft for $450,000 to Rainbow Air, who used the helo for sightseeing flights at Niagara Falls.

"The sale of engine components damaged beyond repair for reuse on an aircraft is unconscionable, as it jeopardizes public safety - not only of those in the sky but also those on the ground - for personal financial gain," DOT special agent-in-charge Michelle McVicker said.

"Working with the Federal Aviation Administration and our prosecutorial colleagues, we will continue our efforts to uncover unapproved parts fraud and seek punishment of those who compromise the integrity of DOT's safety programs."

FMI: www.dot.gov, www.faa.gov, www.mow.uscourts.gov