Objection over money owed arises to ADI plan for Youngstown-Warren airport

Staff report

VIENNA

An objection has arisen after the U.S. Department of Transportation issued an order allowing Aerodynamics Inc. to bring air service from the Youngstown-Warren Regional Airport to Chicago O’Hare International.

Via Airlines Inc. and James Paquette say they object to the issuance of a certificate for the service because the company is in default on a $400,000 promissory note owed to Paquette.

The DOT issued its order Nov. 30. From that date, there is a 14-day period during which individuals may comment on whether the government’s order should become final or not. There then will be a seven-day period for ADI to respond.

The application submitted by ADI waited 18 months to receive approval. That’s because the DOT learned the former owner and CEO of ADI, Scott Beale, had been found by a federal judge to have committed fraud while soliciting funds for ADI from an investor and “had expended those funds in a manner which was not consistent with the agreement between the parties,” the objection states.

The DOT also found Beale’s actions indicated a “disregard for the law.” The company was sold to ADI Acquisition Co., owned by Portland, Ore., real-estate developer John Beardsley and his wife, Janet, in July 2015. The Beardsleys also own 80 percent of SeaPort Airlines of Portland, which does business as Wings of Alaska.

The objection states: “The company maintains that its updated financials and those of its new owners support ADI’s financial fitness,” but the objector disagrees.

“As part of its fitness disclosures, ADI contends that ‘there are no actions or outstanding judgements against it, its owners, or its key personnel, nor have there been any charges of unfair, deceptive or anti-competitive business practices, or of fraud, felony or antitrust violations brought against any of these parties.’ ADI, yet again, fails to provide full disclosure to the DOT,” the objection says.

Via Airlines Inc. and Paquette claim that as a part of the purchase of ADI, ADI Acquisition tendered a $400,000 promissory note, plus interest, late fees and collection costs to Paquette, who claims Beardsley defaulted on the note by failing to pay the first installment payment of $8,765.61, which was due Aug. 15. ADI has failed to make other payments due in September, October and November, the objection states.

A total of more than $430,000 is owed, according to the objection.