Thursday, December 20, 2012

Man Admits Illegally Trading Plane

(Stillwater, Okla.) -- A former Cushing man has admitted he illegally traded an airplane while it was mortgaged for a loan from the Bank of Cushing.

    Larry Dale Morgan, 67, who now lives in Hutto, Texas, pleaded guilty to unlawful disposal of secured property in Payne County District Court last week.

    As part of a plea bargain, Morgan, who had already paid $37,989 restitution, was placed on probation for one year conditioned on his paying the balance of $2,414 restitution.

    Bank of Cushing President John Bryant had reported to Cushing Police Officer Rachel Hentges on June, 30, 2011, that "Larry Dale Morgan had traded a mortgaged plane to John H. King and had made no attempts to make payment on the lien," Cushing Police Detective Adam Harp wrote in an affidavit.

    Bryant said that the Bank of Cushing has a collateral interest in a twin engine plane and a 1961 Beech Bonanza airplane, which was traded for a 1969 Cessna 421A, the affidavit said.

    "Bryant indicated the Bonanza was collateralized on Feb. 11, 2010, for $41,945 with an interest rate rate of 5.750% per the Federal Aviation Administration aircraft security agreement Morgan signed on Feb. 11, 2010," the affidavit said.

    "Bryant reported the Bank of Cushing was unaware of any trade Morgan was about to do with Queen of Hearts Aviation and was not in agreement with the trade," the affidavit said.

    "Bryant advised the Queen of Hearts did not wish to pay off Morgan's indebtedness. According to Bryant, President of Queen of Hearts Inc. John H. King requested the lien be removed from the Beech Bonanza, which his company now owns, and be reassigned to the Cessna, which Morgan now owns," the affidavit said.

    According to the FAA online registry, the Beech Bonanza is currently registered to Queen of Hearts Aviation Inc., as of Dec. 17, 2010, and the Cessna is currently registered to Larry D. Morgan as of April 14, 2011, the affidavit said.

    "Bryant said he had attempted to correspond with Morgan regarding the airplane trade and outstanding lien. Bryant stated he had learned Morgan received a check and was able to pay the amount owed to Bank of Cushing," in June 2011, the affidavit said.

    On July 1, 2011, Officer Hentges spoke with John King of Queen of Hearts Aviation based in Delaware by telephone regarding an airplane trade between himself and Morgan, the affidavit said.

    "King reported Morgan contacted him after listing his Cessna airplane for sale. King reported Morgan offered him a straight trade for Morgan's Beech Bonanza and an instrument panel," the affidavit said.

    "King said that after the trade, he found out Morgan had forged the Beech Bonanza's documents concerning a new engine, falsified the log books about the engine overhaul, and forged a mechanic's name regarding an inspection," the affidavit alleged.

    "King reported the airplane he received from Morgan is not 'airworthy' as Morgan represented in the trade and cannot be used in its current condition due to the falsified records and unrecorded repairs," the affidavit alleged.

    "King said he did still have possession of the plane and in order to make it airworthy, it would cost him $45,000. King said that as is, the plane is grounded and cannot be used," the affidavit alleged.

    Morgan will not have a criminal record if he successfully completes the terms of his probation, since he was given a deferred sentence as part of a plea bargain with the prosecution.


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