Four Executives of Guam Based Hansen Helicopters Charged in Alleged Conspiracy to Defraud the FAA and Related Charges

Defendants Used Aircraft That Had Not Received Required Safety Inspections and Legitimate Airworthiness Certificates to Generate Income

HAGATNA—John Darrell Walker (a.k.a. Jon Walker), Marvin R. Reed, Kenneth Rufus Crowe, and Phillip Turner Kapp were arrested on May 31, 2018, as a result of a federal indictment charging them with knowingly and willfully conspiring a scheme for Hansen Helicopters, Inc., to utilize and lease unsafe aircraft that did not comply with U.S. safety aviation regulations.

A federal grand jury returned a twenty-three-count indictment against the Hansen employees. The indictment charges conspiracy to defraud the Federal Aviation Administration (FAA) and the National Transportation Safety Board (NTSB); honest services fraud; wire fraud; money laundering; destruction, alteration, or falsification of records; attempted destruction of an aircraft; and false statements.

On March 28, 2018, FAA safety inspector Timothy J. Cislo pleaded guilty in District Court of Guam to three counts of honest services wire fraud involving Hansen. Cislo issued airworthiness certificates to Hansen without inspecting the helicopters in exchange for an airplane for his personal use.

“This investigation targeted a bribery and fraud scheme between a private business and a public government official who was entrusted with oversight of aviation safety,” said FBI Special Agent in Charge Sean Kaul. “When private companies place higher value on profits over public safety, innocent lives are put in danger. The FBI will continue to prioritize corruption investigations and hold accountable all those who betray the public’s best interest and trust.”

The owner of Hansen Helicopters, John Darrell Walker resides in Missouri and was arrested there.

Reed, Crowe, and Kapp were arrested in Harmon, Guam.

The case was investigated by the Federal Bureau of Investigation, Department of Transportation Office of Inspector General, Internal Revenue Service, Homeland Security Investigations, and Guam Customs and Quarantine.

An indictment is merely an accusation, and Walker, Reed, Crowe, and Kapp are presumed innocent until and unless proven guilty.