The Complaint further outlines Aircraft Services Group’s (ASG) alleged failures, including breaches of its duties and contractual obligations.
Newark, New Jersey – McLaughlin & Stern, LLP announced that partner Nelson E. Canter, Co-Chair of the Litigation Department and head of the firm’s Insurance Subrogation Practice Group, commenced an action in US District Court in Newark, New Jersey, against West Star Aviation and Aircraft Services Group (ASG) alleging numerous causes of action including fraudulent billing practices. The subject of the action is AFC’s Gulfstream IV jet, which was transported to West Star for some minor repairs. Such repairs ballooned to over $2,000,000, accompanied by lengthy delays, which caused the continuing AFC to incur continuing damages. After an extensive audit, it was discovered that West Star overbilled AFC over $700,000.
“At what point do repeated and egregious billing errors become a pattern and practice of outright fraud?” said Nelson E. Canter, Partner at McLaughlin & Stern, LLP. “Most private jet owners may not take the time or make the effort to audit, repair, and service records, because they rely in good faith that West Star’s billing practices are necessary and appropriate.”
The Complaint alleges that West Star fraudulently inflated labor charges by invoicing hours far in excess of industry standards for routine repairs at levels approaching those of a complete aircraft rebuild; that West Star billed unwarranted engineering services outside the scope of work performed; duplicated invoices for identical parts or labor; provided inaccurate and inflated parts pricing where complete overhauled units could and should have been sourced for substantially less, and invoiced for unauthorized or unapproved work without AFC’s prior consent. The complaint also details excessive consumable charges beyond contract thresholds without justification, as well as project delays that directly resulted in unnecessary costs and damages.
The Complaint further outlines Aircraft Services Group’s (ASG) alleged failures, including breaches of its duties and contractual obligations. These include failing to provide on-site oversight of West Star’s work in accordance with industry standards; permitting West Star to bill excessive hours unrelated to required airworthiness repairs; failing to competitively procure parts which resulted in inflated charges such as $161,397.70 for nose landing gear components when a complete overhauled assembly could have been acquired for substantially less; that ASG neglected to update required tracking documents; overlooked or ignored fraudulent charges by west Star; failed to secure AFC’s approval for costly repairs, and was not present at critical inspections and repairs, while also allowing West Star to understaff the project and prolong delays.
Mr. Canter emphasized, “This case is about accountability and the responsibility that repair facilities, Directors of Maintenance, and oversight groups have to the clients who place their trust in them.” Mr. Canter added, “When those obligations are recklessly or intentionally ignored and such billing practices cross the line into fraud, we will take action to protect our clients’ rights and hold such parties accountable.”
About McLaughlin & Stern, LLP
Founded in 1898, McLaughlin & Stern is one of New York’s oldest law firms, with offices across New York, New Jersey, Florida, and Connecticut. The firm represents clients in a broad range of practice areas, including civil and criminal litigation, corporate law, trusts and estates, real estate, tax, and insurance subrogation.
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