American Falcon
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American Falcon (IATA: WK, ICAO: AFB, and Callsign: AMERICAN FALCON) was an airline based in Buenos Aires, Argentina. Its main base was Ezeiza International Airport, Buenos Aires. The airline under the management of L'Emir Fayez Chehab, its CEO, failed to generate enough revenue to cover its operating costs for many years, had a large negative net worth and could not meet its debts to many parties, including its employees, insurance, airplane maintenance vendors and airplane lessors. The airline finally failed and filed for bankruptcy in Summer 2005.
Fayez Chehab, its CEO and Willis Chrans, a U.S. director have been sued by investors in U.S. Federal District Court for violation of Racketeering and Conspiracy laws "RICO" and securities fraud, among other allegations in a 21-count lawsuit. The RICO counts were dismissed by the court and the case continues as a U.S. Federal Securities Fraud case, among other counts.
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[edit] History
The airline was established in 1996 and started operations in 1998. It started as a charter airline with wet-leased aircraft from LADE - Lineas Aereas Del Estado. In May 2004 it resumed scheduled domestic flights between Buenos Aires and Iguazu and plans services to Córdoba and Mendoza. American Falcon is owned by alleged co-conspirator Fayez Chehab (95%) and Elvira Tavela (5%). Chehab has been named in a 21-count complaint filed in US District Court alleging a conspiracy to defraud US investors.
The company filed a Concurso, or the Argentine equivalent to a Chapter 11 Reorganization on May 20, 2005.
American Falcon ceased operations in July, 2005 after its insurance was cancelled for non-payment.
On September 1, 2005, Fayez Chehab, the CEO and Willis Chrans, a U.S. Director on the board of American Falcon, Bank of Springfield, Springfield, Illinois, Michael McGlasson, President of Bank of Springfield and James Kelley, Senior Vice President of Bank of Springfield, Steven Bentley, CPA, Donald Mallette and Dr. Randolph Martin were sued by investors of American Falcon in U.S. Federal District Court, Central District of Illinois in a 104 page civil complaint, alleging among other counts, violation of the Federal Racketeer Influenced and Corrupt Organizations Act (“RICO”). According to the complaint, over the past 4 years, American Falcon has net losses exceeding U.S. $24 million and U.S. investors face losses exceeding $6 million as a result of fraud and misrepresentation and other allegations, including the cancellation of the U.S. investors' shares by Fayez Chehab.
[edit] Services
In July 2005, American Falcon ceased operations of its scheduled domestic and international passenger charter flights.
[edit] Fleet
As of January 2005, the American Falcon fleet consisted of 2 Boeing 737-200 aircraft. The two aircraft were leased from U.S. companies.
[edit] External links
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