FOR IMMEDIATE RELEASE
Wednesday, March 11, 1998
Contact: Jeff Nelligan
(202) 366-6312
OIG 8-98
STIFF SENTENCES GIVEN TRAFFICKERS
IN STOLEN AIRCRAFT PARTS
The Department of Transportation’s Office of Inspector General (OIG) today announced the sentencing of two traffickers in stolen aircraft parts, including some obtained by armed robbery.
A 12-year prison term and a fine of $1.3 million were given to Jose Costales Jr., 32, a resident of Davie, Fla., followed by 3 years of supervised release. Costales was convicted by a U.S. District Court in Florida.
A second defendant, Guy Salom, who pleaded guilty prior to the criminal trial, was sentenced to 18 months’ incarceration. Three other defendants await sentencing.
"These are some of the stiffest penalties ever given in an aircraft parts case," said Inspector General Kenneth M. Mead. "The crime is of an extremely serious nature because it is nearly impossible to verify the airworthiness of stolen parts. Parts that are not airworthy could place air passengers at risk. The severity of the sentences underscores how seriously the court viewed the crime."
Costales was convicted in September 1997 of conspiracy to communicate false information endangering the safety of an aircraft, unlawfully transporting stolen aircraft parts in interstate commerce, and committing mail and wire fraud by lying to unknowing buyers about the origin of aircraft parts so as to disguise the fact they were stolen.
The federal jury also convicted Costales of the armed robbery of $1.5 million in jet aircraft parts from two Federal Aviation Administration (FAA) certified repair stations, Aerothrust Corporation and Aviation Enterprises International, Inc., both in Miami. The robberies occurred in November 1994 and March 1995. Included in the robbery were stolen aircraft jet engines, Allison turbine engine blades, and other engine components.
The stolen parts subsequently were sold or "laundered" by an FAA-approved repair station, Nation’s Air Corp., and a parts distributor, World Air Sales and Services, Inc., both located in Miami and owned by Costales Jr. He falsely represented the parts’ traceability and airworthiness by issuing false vendor material certifications. Many of the parts were then sold to co-defendant Thomas David Hinton, who in turn sold them to various parts distributors and major airlines, including TWA and Delta Airlines.
The investigation was the joint effort of the department’s Office of Inspector General, the Federal Bureau of Investigation, the Metro-Dade Police Department, the Drug Enforcement Administration, and the United States Attorney’s Office for the Southern District of Florida in Miami.
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