New Jersey Aircraft Parts Broker Pleads Guilty to Wire Fraud Conspiracy Charges in Connection With Scheme to Sell Scrapped Aircraft Jet Engine Parts
On December 3, 2010, Carmine Coviello, an aircraft parts broker and owner of Shelby Enterprises, pled guilty to a one-count Information, charging him with conspiring to commit wire fraud.
Mr. Coviello admitted that from April 2005 through August 2009, he used his company to purchase used jet engine parts called "blades" and "vanes" from scrap metal dealers that had already been scrapped and deemed non-repairable and thus not "airworthy" by FAA-certificated repair stations.
Mr. Coviello used his company to engage in sham sales to a company called Tara Aviation located in the Bailiwick of Guernsey, England, which was alter ego to another aircraft parts broker that employed Mr. Coviello as a general manager. Mr. Coveillo admitted that the sole purpose of these sales was to generate a fraudulent historical record that these parts were certified, without his having any knowledge of their actual history or whether these parts had been subject to severe stress or heat.
This investigation was conducted jointly with the Internal Revenue Service and with the assistance of the FAA Flight Standards District Office. A sentencing date has not been scheduled.