In late June our company also based in Miami, Florida had intended to purchase a used ex-TWA Douglas DC-9-30 series passenger jet aircraft from AMTEC CORP (A JET ENGINE AND AIRCRAFT DEALER AND LESSOR) at a fair price of $350,000 USD and inturn resell it to an airline client overseas who had made a purchase order to our company.
We made it clear this aircraft was to be put back into service with an IATA airline and that our purchase was subject to the satisfactorily completing an inspection of the tech records, log books, engines and airframe, but the SELLER was in a BIG rush which we thought was strange, but that is the culture here in Miami so we moved forward and did not think much of it.
Then the next day we were approached by an AMTEC independant broker/agent advising payments were NOW to be split with the OFFICIAL contract revised down to $300,000 USD but the sums of $35,000 in cash at closing without deductions for higher ups and $10,000 in cash to the broker/agent were to be paid (OUTSIDE) of the contract and not to the company directly, making our new cost $345,000 plus now more cost for tax liabililty.
We also recieved the updated specifications from AMTEC (via an engine sales director) that DID NOT HAVE ANY MENTION AT ALL of any missing or lost aircraft records that included (ALL OF THE LAST D CHECK / AIRFRAME OVERHAUL and 95% OF THE AGING AIRCRAFT CORROSSION PREVENTION PROGRAM WAS LOST). During the inspection we found out AMTEC clearly knew this (it was documented in their indexes made by their records technicans and duly noted by TWA in the records before delivery of the aircarft to AMTEC).
WE DID NOT KNOW THIS (NON-DISCLOSURE) so we went ahead and made a firm purchase offer (outlining the conditions of the sale) followed by a wire transfer from our line of credit in the sum of $20,000 USD (that they INSISTED had to go the their account - maybe to make payroll?) in order to remove the aircraft from the market for 5 business days for inspections, final contract and title search with the FAA, a normal proceedure prior to closing. Once the wire came in AMTEC changed thier ways, they put forward a rather ODD but shifty deposit receipt letter that was changed numerous times before it was accepted, but it still stated clearly that the deposit was refundable if there was misrepresentation (there was!) or if the aircraft was damaged and it was (the missing D check and CPCP records damaged the aircraft to make it UNFLYABLE AND UNAIRWORTHY).
The day the $20,000 deposit was sent via WIRE TRANSFER (ie. WIRE FRAUD) we started inspection of records and log books along with the technical records manager from our airline buyer overseas (a team effort).
Late on the 2nd day of the inspection we found 2 EMPTY files where the last D Check and Corrossion Program historical documents should have been (A BIG NO, NO and this is sooooo bad that it made this commercial jet aircraft NOT commercially flyable anywhere unless over $1.5 Million PLUS was spend to redo all of the D and CPCP work from day one).
We immediately started to search for the missing documents and even TWA in Kansas City advised there were NO records as they were lost (maybe due to a union squabble or sale of TWA) and AMTEC knew this. We then STOPPED THE INSPECTION at that time (on day 3), and sent a LEGAL REJECTION OF GOODS LETTER to AMTEC with the demand for the immediate return of our entire $20,000 USD deposit without offset or deduction.
We claimed it was GROSSLY MISREPRESENTED, OUR CLIENT SPECIFIED REASONS TO REJECT THE AIRCRAFT and we wanted our money back...
AMTEC's President (basically a shop stewart) who is from ITP GROUP from Madrid said he thought there was some basis for the refund and that he would probably refund ALL the money and he even offered to give back 1/2 of it or $10,000 USD (IN WRITING) that was until he talked to his litigation attorney (Law Offices of HOLLAND & KNIGHT PA) who also saw it was no god to settle or pay as we feel that he saw opportunity to MILK this one for more $ and bill more hours for THE FIRM.
The president CHANGED HIS MIND AT THIS POINT but advised that he was was going ot look into or investigage the underhanded activities and the $35,000 USD cash commmission program that was proposed by his underlings if the deal has done through. SO far NOTHING has changed with their staff, and we feel this is just the NORMAL way they (AMTEC - ITP GROUP) does business and it was BEST TO LEAVE THAT STONE UNTURNED. We also must advise that we copied and notified the head office (OWNER) in Spain but did not get a reply...
FURTHER the aircarft was not airworthy or able to be placed into revenue service again (it was basially JUNK except for the engines as the parts have limited or no commerical value since the events of 9/11).
Advice: check everything when dealing with amtec (caveat emptor). Do not send amtec any deposit in front as they cannot be trusted and they appear not to be honest in their endeavors even though they are well funded (put the funds into escrow) unless you have inspected, accepted, or that you are taking title or that you are closing...
We initiated a lawsuit against AMTEC that is pretty cut and dry and if we win the case we will beg the court for 3x the depoist plus legal fees and our lost profit if we obtain a judgement (that dumb thing is that these guys are recourseable and should not be so arrogant as they have something to loose, maybe up to $150,000 USD all over $20,000 USD - I DO NOT HAVE MUCH TO LOOSE AND I AM MAD AS HELL!).
This deal CUT OFF our entire line of credit with our lenders and almost put my company out of business, I have lost my credit, other deals, lost a good profit on the sale of this aircraft (my client already bought 2 planes somewhere else), I lost my car, sold almost everything and almost everything and IT IS NOT GETTING BETTER... As it was not just about $20,000, it cut off a line of credit that ran a business...
BEWARE OF AMTEC CORPORTION - ITP GROUP and their unscrupulous sales practices!!!
John
Miami, Florida
0 comments