Chicago Owner of Aircraft Leasing Company Faces Charges of Financial Fraud

Chicago - Brian Hollnagel, the owner of an aircraft leasing company who was indicted earlier this year on federal bribery charges, now faces additional charges alleging he was involved in a fraudulent financing scheme that raised more than $50 million.

Brian Hollnagel, 37, of Chicago -- owner, president and CEO of BCI Aircraft Leasing Inc. -- is charged with 12 counts of wire fraud, and two counts each of tax fraud and obstruction of a previous SEC lawsuit against the company, a release from the U.S. Attorney's office said.

He has remained free on $1.7 million bond since his arrest in March on one count of wire fraud in connection with the commercial bribery scheme, the release said.

In all, seven defendants, including Hollnagel, and the corporation were charged in a 21-count superceding indictment returned Wednesday by a federal grand jury. An eighth man, a cooperating witness, pleaded guilty last month to fraud and tax evasion, admitting he accepted more than $400,000 in bribes as part of the scheme, the release said.

BCI Aircraft Leasing, which buys, sells and leases commercial planes and operated first in Naperville and later Chicago, was charged with 11 counts of wire fraud, two counts of obstructing the SEC lawsuit and one count of bribery, the release said.

According to the indictment, beginning about early 2000 and continuing through through early 2009, Hollnagel and the six others fraudulently obtained and retained financing and other funds for BCI, then used the money to enrich themselves to the detriment of investors, lenders and others.

They allegedly raised more than $50 million, "commingled" the funds and misappropriated some for personal use, the release said.

They concealed the scheme by providing false testimony and information in connection with the SEC lawsuit, misleading and attempting to mislead BCI investors and independent auditors, and creating phony accounting records, the release.

Also indicted were:

• Craig Papayanis, 49, Moorpark, Calif.
• Jason R. Hyatt, 37, Winfield
• William Hatamyar, 55, Edmond, Okla.
• Jeffrey Meyer, 52, formerly of Lake Zurich
• Martin Collier, 64, Chicago and Woodland Hills, Calif.
• Robert Carlsson, 41, Chicago

The defendants will be arraigned at a later date before Judge Amy St. Eve at the Dirksen Federal Building, the release said.