Offered Airplanes He Did Not Own As Loan Collateral

The owner of Aircraft Sales Corp. in Orange Beach, AL, has pleaded guilty to defrauding a bank of some $3 million by using airplanes he did not own as collateral to obtain a loan.

Mark J. Graubart faces the minimum of about 4 years in prison on charges of bank fraud, making a false statement to a federally insured financial institution, and making a false statement to a federal agency, according to a report appearing on the online news site AL.com.

Defense Attorney Dennis Knizley said that the 58-year-old Graubart had run a legitimate business for many years, but then he ran into financial difficulties. His client had tried to "keep the business going," he said.

The company is still in business, but acting now more as a broker between buyers and sellers rather than direct airplane sales. Knizley said that Graubart has liquidated some assets to make a down payment on a civil judgment won by the bank, and has been making payments of $5,000 per month.

According to the plea agreement, Graubart offered false bills of sale for several aircraft, as well as security agreements and registration applications for airplanes he did not own, including a V35B Bonanza that had been substantially damaged in an accident in 2005.

FMI: www.als.uscourts.gov/