By Joe Nelson and Josh Dulaney, The (San Bernardino County) Sun
Posted: 09/21/2011 10:02:16 AM PDT
SAN BERNARDINO — The FBI on Wednesday served search warrants at San Bernardino International Airport and the Riverside home of airport developer Scot Spencer.
The raid follows an annual report released July 1 by the county’s civil Grand Jury that sharply criticized operations at the airport, alleging questionable practices in its finances, construction management and how it awards developer contracts.
Mayor Pat Morris, who presides over the board of a joint-powers authority that oversees redevelopment of the airport, said at a meeting with The Sun’s
The FBI served federal warrants Wednesday morning at the Inland Valley Development Agency and the San Bernardino International Airport Authority in San Bernardino, and another at a Riverside residence.
editorial board on Wednesday he had no information on the specifics of the federal probe and had not been served with a warrant.
“I’m in the dark on all this, but we’ll have to see what develops,” Morris said.
Morris stands by the oversight of the airport’s operations.
“I believe we were doing business according to the law and by the numbers,” said Morris. “I am totally stunned by the events of today.”
Roughly 80 federal agents arrived at the airport around 9 a.m. as part of a joint investigation with the District Attorney’s Office and the state Attorney General’s Office, FBI spokeswoman Laura Eimiller said.
“We’ve built a helluva airport on a dime, in my opinion. … I am totally stunned by the events of today.” Mayor PAT MORRIS
Among the locations where federal agents assembled were the airport’s administrative offices on South Leland Norton Way and at Million Air, an upscale aircraft refueling facility that is part of a national chain. Warrants were also served at three airport hangars, Eimiller said.
Donald L. Rogers, the airport’s interim executive director, criticized the raid.
“We were, until today, very near a successful completion of the commercialization of the former (base),” he said in an emailed statement. “Over 4,200 jobs have been created and $1.5 billion in assessed valuation has been raised to over $5 billion.”
He also said the FBI’s “very public display of investigative powers will raise doubts in many minds, including potential airlines. Because it will taint perceptions, it may be very damaging.
“As for the airport, I know of no wrongdoing or criminal action that has occurred during my tenure…and I strongly believe politics, not good government, is behind this search warrant (and) that headlines, not real information, was the goal. Time will tell.”
Bill Ingraham, the airport’s aviation director, said he arrived at work Wednesday just before agents arrived with warrants. He said he was told the agents would likely be there all day and was directed to send everyone home.
Ingraham said agents seized his computer and telephone, and were sifting through files in the building.
The airport’s control tower and runway remained open during the search.
“The airport is open,” Ingraham said. “It’s business as usual on the airport side of things.”
Agents served a warrant at Spencer’s gated home in Alessandro Heights, an upscale Riverside neighborhood.
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My letter to the IVDA board members some months ago
Mike Harding 3280 Bronson St. San Bernardino, California 92407
(909) 556-0309
May 25, 2011
Okay Gang, and Good Morning…,
Yesterday I began to give a brief report on the US Labor Department hearing I attended in Long Beach, California after waiting three and a half years to complete an investigation. So now, here’s an idea of what I think the results of the hearing may be. But, before we start I’ll give a little background on the type of people who are running the show at San Bernardino International Airport (SBD). I’ve worked at that location five times in the past, and should know.
The two main idiot-groupings who run SBD are first, the Inland Valley Development Agency (IVDA) and, the San Bernardino International Airport Authority (SBIAA). It should be noted that in the past a member of the one could also sitting on the other, there back-stopping any decisions made on IVDA effecting decisions on SBIAA.
This is what was happening over the past 10 years in regards these two individuals (Scot Spencer, and T Milford Harrison) who have master-minded a slow hostile take-over of SBD. At the hearing cited above testimony was heard, and exhibits entered into evidence these two people have been constructing an inter-locking cartel of corporations designed to rest control of SBD from the public while sucking up tax-payers investments.
During testimony extracted from Mr. Harrison it was learned he and Mr. Spencer’s father (George) had created a sham (err, excuse me) small airline named Ascend Airlines in Florida sometime in June of 2000. Mr. Harrison was VP, and the George Spencer was President. Now there’s nothing wrong with people forming business relationships, but in this case one wonders what the attraction was for a California guy sitting on the boards of both IVDA and SBIAA.
The flags start going up, and the plot thickens if one has read the papers and found that this same Scot Spencer, George’s son, had tried to start his own an airlines named Southern Express in Texas way back in 1984. But soon lost his first mob (err, sorry, investors) money on that deal. However, next we find him as CEO for a day (or was it two) of Air One Airlines in St. Louis around 1985. But now watch the money ball as it also went bust the same year.
With two down Scot apparently disappears to the south of France, but is right back in the thick of it by 1991, when lo and behold he is made CEO again, but this time it’s Braniff Inc. (or Braniff III has the feds later called it) and there he gets caught moving “money and assets” around against the wishes of the US Department of Transportation. Scot then gets nailed for bankruptcy fraud and saw four and a half years in club fed until they cut him lose in 2001.
Strange is it not that Mr. Harrison (you remember him, right?) would immediately show up back in Florida again to welcome old Scot home, and a couple weeks later forms a corporation (KCP Leasing and Services, Inc.) with Scot which firm shortly became the parent corporation Ascend Airlines. Oh, did I forget to mention Scot was made President, with Harrison VP? Now, within a week they both bring the Gypsy airline to SBD in sunny California.
Oh, and before we forget, while Harrison and Spencer were using KCP, Inc. to sneak Ascend Airlines into SBD, Mr. Harrison just happened to be on the board of both IVDA and SBIAA, so these “business men” immediately started to offer flights out of SBD using a few 727 aircraft they had brought out to SBD. But again, the boys hadn’t thought ahead, and “over looked” the need to have a DOT license before offering flights.
Not to worry, because here again that damn old DOT got upset, made a scene. DOT went so far as to stop the flights, and actually cited Scot and fined him a $1 million bucks for his troubles. And to make matters worse Scot had to use a more mob (err, investors) money, to pay fine. However, here again the story doesn’t stop, as some old cranky judge at DOT then orders Spencer to, “not to have anything further to do with aviation.” Scot tried to appeal, but no good.
Damn, that must have hurt, but still not to worry, Mr. Harrison and Scot then start forming another corporations (having nothing to do with aviation of course) with the first called SBD Aircraft Services, Inc. (Geeeez, what chutzpah?) and by golly, with Harrison still on the boards of IVDA and SBIAA, would you believe their new corporation receives a, “five year, $2.1 million lease” on the largest airport hangar complex, in the US (Geeeez, what luck).
Well, what can one say? From that date forward the cartel (err, the team?) Harrison and Spencer have continued to go their merry way forming numerous corporations such as, Southern California Precision Aircraft (SCPA), SBD Properties, LLC, SBD FBO Services, LLC, Million Air Development, LLC, Norton Aircraft Maintenance Services, Inc., Norton Development Company, LLC, Pulsar Aviation Services, Inc. with Spencer as President, and Harrison as “Manager,” and of course these inter-locking corporations have absolutely nothing to do with aviation.., right?
Now, one hates to be negative about a couple guys making a buck, but like everything else these guys started, most have failed. In the hearing it was brought out Spencer had found another convicted felon, Greg Albert to manage SCPA which firm could have actually have performed a service of commercial aircraft maintenance. However, Albert was a little light on management theory after 3 years in prison. What the hell, Spencer could “trust him.”
Somewhere along the line in 2007, I was hired as Sr. Audit Inspector at SCPA and developed the nasty habit of wanting the aircraft repaired to the standards set forth in the Federal Aviation Regulations (FAR’s). Since I had the final say as to wither the repairs were done correctly, I was soon asked to “fudge a little” (just a little of course) on the paperwork needed to sell the aircraft to the customer, oh darn, I refused to pass it off, or fudge!
Long story short, I was fired after first reporting the violations to the FAA, and after a three and a half year, bingo, the USDL hearing was scheduled. Oh what a joy! Although I had worked for SCPA, would you believe those rascals tried to file for bankruptcy? Well, when that didn’t work, because SCPA weren’t bankrupt, Mr. Spencer, out of the goodness of his heart, tried to “rescue” SCPA by creating NAMS who then “bought” SCPA’s assets, wait, some of the assets.
You’ll remember Spencer was, and still is, under a DOT order not to have “anything” to do with aviation, but my lord, here he is knee deep in again “investing” in aviation “services”, (Ops, no, I meant properties) and still providing services at SBD. Oh, did I mention Harrison appeared at the hearing as VP of NAMS, and testifying, “NAMS has no President” while another witness offered his resume indicate he was the owner, and CEO of NAMS (What..?).
As it stands now, NAMS may be made (I mean ordered) to not only hire me back, but to pay my back wages up to date, but then again I have an additional order to pay over $13,000 in back wages which NAMS hasn’t paid either. During the hearing there was a moment of mirth when one of NAMS’s witnesses yanked out a check to show the judge he also hadn’t been paid wages owed right after Harrison had stated over $117,000 had been paid out.
There are a couple other little didies which bedevil Mr. Spencer, and Harrison, which are the items of operating a FAA commercial Repair Station without a business license (nothing new for Spencer), and the fact that under a recent FOIA request, it was found NAMS did not have proper use of SCPA’s certification to perform commercial aircraft repairs nor any other type of aircraft maintenance.
I’m mailing this out to both the IVDA and SBIAA separately, and if something I have said strikes a sore note.., then sue me..! Oh, and we better grab our ankles as during the hearing Harrison mentioned two more corporations were forming, and Norton Aircraft Maintenance Services, is “being re-configured.” God save us all, and God save the Republic. Time to get the raincoats and handcuffs out I think?
Sincerely, Mike HArding
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