Integrity Aviation Fraud Lawsuit
Thanks so much to this board for all the helpful guidance. I've been working on this case for years. This is my first post.
This board has uncovered much of what is happening, but has missed much more, so here is what I have to add. There is much more that I can't say here, but here is what I have to add:
About a year after the TURA reverse split, Victor Farias managed to borrow $10,840,000.00 from the municipal market via a disguised borrowing for Integrity Aviation and Leasing LLC. See the offering document here: 2015 Offering Statement. The security identifier for those bonds is 74444LAA0. Those bonds were issued with an 8% coupon, and now trade at about $43.
The stated purpose of the borrowing was: "Integrity intends to acquire aircraft engines and airframes (the “Aviation Assets”) from TEC". The document never defines what TEC is, but from this forum, we know that TEC is The Turbine Engine Center, an affiliate, both with connections to Matthew Marsenison and Victor Farias. This conflict of interest was not disclosed. Integrity aviation then transfered those bondholder proceeds to an affiliate in exchange for engine assets at inflated prices. This was the epitome of self dealing.
The stated intention was to acquire these assets, then lease them for enough profit to pay off bonds. That has not happened. The bonds are in default, and do not have enough revenue to pay. Less than half the engines are generating revenue. Two of the engines have mysteriously disappeared in Ethiopia. Integrity Aviation is now suing Odyssey Engines (the new parent of TEC) for misconduct. That suit includes the quote: "Recently, Odyssey's excuse for some of its failures was that Odyssey is "fraudulent document central". See sources from bond trustee and court case: Link
Here are a few random smatterings of facts:
#Here is John Mattera (who is prison?) talking about Matthew Marsenison being involved in an aviation based FBI front involved with the Saudis: Link
#Victor Farias, President of Integrity, is suing Odyssey Engines, of which Alan Boyer is CEO. Victor and Alan have a history together - Alan was Victor's boss at Capital Guardian. That firm, Capital Guardian, was recently expelled by FINRA in January 2018 due to involvement in "potentially suspicious transactions related to the deposit and rapid liquidation of venezuelan bonds issued under the sitme program and money movements into and out of customer accounts with only minimal securities activity" (source Link)
#Chip Tencza is, on linkedin, listed both as the current COO of Integrity Aviation, and as a Vice President of Odyssey Engines, LLC. (source Link)
#For about a year, Integrity Aviation had an offering document on Castleplacement.com attempting to raise $100mm up until early 2019. They were unsuccessful and that offering was pulled shortly before the above mentioned lawsuit. I have a saved copy if anyone is interested
#See the angry Google review from Tony Monasterio for Integrity Aviation and Leasing where he says: "So we invested with these people and need are money back. We've made multiples call to there so called accounting department and even there CEO. We've been getting nothing but run around . No follow ups or return calls. Now we are in the process of hiring an attorney to get our money back. Please BEWARE!!!..." (source Link)
#See Misti Ducharme's linkedin profile where she is VP of Jet Engine Leasing, where she claims that "Integrity Aviation is a Publicly traded company in the Foreign Market for our Senior Secured Investment Rated Bond." - Integrity Aviation is niether a publicly traded company, nor are they investment grade rated. (source Link)
#In a similar pattern to what we've seen with TURA's lack of disclosure, Integrity Aviation is required, per their municipal bond indenture, to file annual audits (as is typical of bond deals). Not doing so is an Event of Default. Since the 2015 borrowing, Integrity Aviation has never filed an audit (source Link)