Mark Huber is an aviation industry veteran who has worked in the flight training, aircraft sales, aircraft component, and airport development businesses. He has flight time in more than 50 different and diverse aircraft, including helicopters, aerobatic aircraft, vintage warbirds, jet fighters, business jets and turboprops, and transport-category aircraft. He has jumped out of several of these—on purpose—with a parachute. His defense and aviation journalism has been published in a variety of national and international periodicals.

Contributor

Mark Huber

Two former MD Helicopters executives could cash in big after a federal jury last month found the company guilty of fraud in relation to military sales to&nbsp;El Salvador, Saudi Arabia, and Costa Rica in 2011 and 2012. Under federal law, the $36 million damage award could be trebled, and whistleblowers Philip Marsteller and Robert Swisher, who originally filed the complaint in 2013, could receive up to 30 percent of the final amount.&nbsp;

 


The award calls into question the future market value of MD, which is widely believed to be being primed for sale since the departure of former CEO Lynn Tilton in 2020. Tilton was dismissed as a party to the suit prior to trial. Through a spokesman, MD Helicopters declined to comment when contacted by &nbsp;AIN.&nbsp;

 


These fraud charges centered on&nbsp;Col. Norbert Vergez, who ran the U.S. Army’s non-standard rotary-wing program from 2010 to&nbsp;2012, and his relationship with MD, which became his employer via Tilton and her management company, Patriarch Partners, in 2013.&nbsp;Vergez pled&nbsp;guilty to making false statements and criminal conflict of interest in 2015. The charges stemmed from&nbsp;his failure to report receiving&nbsp;$30,000 for “relocation expenses” related to his immediate post-service employment with Patriarch and from&nbsp;his nondisclosure of&nbsp;the gift of a $4,000 Rolex watch to his wife. She had&nbsp;received the Rolex&nbsp;from the wife of a Lithuanian executive involved in a deal for the U.S. Army to provide Russian Mi-17 helicopters for the Afghan Army.&nbsp;

 


In Marsteller and Swisher’s initial complaint, they cited the “level of Col. Vergez's subservience to [MD CEO Lynn] Tilton and his continuing involvement in MD's Army contracts” after accepting a job offer from the company. But by 2015 Vergez no longer worked at Patriarch, and that&nbsp;company was not implicated in the investigation. MD is currently under the direction of CEO Alan Carr and&nbsp;the investment funds that have equity positions in MD and other Patriarch portfolio companies are administered in bankruptcy.

News and issues regarding all manner of civil and military rotorcraft and their powerplants, including helicopters, tilt rotors and unmanned air vehicles.

MD Helicopters Hit with Federal Fraud Verdict 

A jury has faulted the company for conduct related to foreign military sales. 

2024 Corporate Aviation Leadership Summit

Neelam Mathews

News and information on safety procedures and concerns.

Essential news and analysis on the defense aerospace business. Your trusted source for new and ongoing programs and requirements in military aircraft (manned and unmanned), engines, avionics, weapons and associated systems, including ground-based air defense.

News and issues concerning general aviation, specifically airplanes and helicopters powered by piston and alternative engines (i.e., non-turbine powered aircraft). Subjects include aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

Nepal’s army and private operators have deployed rotorcraft across the flood zone

Helicopters Play Crucial Role in Himalayan Flood Rescues

Charlotte Bailey

News about bills, laws, regulations and other governmental decisions affecting aviation and aerospace. Topics include FAA re-authorizations, taxes on fuel and aviation activities, environmental legislation, ICAO decisions, governmental mediation of labor conflicts and World Trade Organization disputes and decisions.

Pentagon permission facilitates sale of Bell 412EXP and 407M

U.S. Approves $800M Bell 407/412 Sale to Iraq Military

News and issues relating to the aerospace industry that are related to the science, engineering and business of flight in space involving civil, industrial and military applications, and similar topics related to flight in the atmosphere of the Earth that are not covered more directly by other AINonline subject channels. In other words, both astronautical and aeronautical subjects, except for those aeronautical topics that are specifically covered elsewhere on this website.

Fire and disaster management agency to use aircraft in aerial reconnaissance role

Japan Orders Its First H160 for Emergency Response

Flights with two scaled technology demonstrators will inform potential future iterations 

Singaporean eVTOL Conducts Test Campaign In Germany 

Matt Thurber

New developments and products in avionics, specifically about aircraft electronics in the cockpit.

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

More In Rotorcraft

Helicopters Play Crucial Role in Himalayan Flood Rescues

Nepal’s army and private operators have deployed rotorcraft across the flood zone

U.S. Approves $800M Bell 407/412 Sale to Iraq Military

Pentagon permission facilitates sale of Bell 412EXP and 407M

Japan Orders Its First H160 for Emergency Response

Fire and disaster management agency to use aircraft in aerial reconnaissance role

Singaporean eVTOL Conducts Test Campaign In Germany

Flights with two scaled technology demonstrators will inform potential future iterations

FAA Approves TSO for ASU Panoramic Night-vision Goggles

Lightweight white-phosphor NVG have a 94-degree field of view

FAA Floats Special Conditions for Skyryse Fly-by-wire R66

Proposed rule addresses pilot awareness of control limits

Vertical Lift Groups Extend Trade Show Partnership

European Helicopter Association and Vertical Aviation International extended their alliance

Sikorsky Is Upgrading the Black Hawk Helicopter for Evolving Military Needs

Armed forces will be able to outfit Black Hawks with new armament and equipment.

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN