Luscombe Aircraft - Quartz Mountain A...

Luscombe Aircraft - Quartz Mountain Aerospace

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Just Another Okie

Altus, OK

#1 Jan 22, 2009
Headlines: "Foreclosure action seeks $450,000+ from assets of Quartz Mnt. Aerospace"

First National Bank in Altus filed a lawsuit against Quartz Mountain Aerospace, Inc.(formerly Luscombe), last week in Jackson County District Court.

The suit also names Oklahoma Industrial Finance Authority, the Altus Municipal Authority and Universal Funding Corporation.

The suit seeks foreclosure action against the aircraft corporation in connection with loans of $250,000 in 2005 and $200,010 in 2006.

Dennis Vernon, representing the bank, had no comment on the suit, and QMA could not be reached for comment.

The lawsuit requests that the QMA’s equipment be sold to cover their $450,000+ debt.

The suit also calls for earlier bank loans to be paid off ahead of later loans provided through the Municipal Authority.

Because of this, the Altus City Council/Municipal Trust Authority authorized City Attorney Catherine Coke Tuesday night to respond as necessary to the lawsuit. The authorization came following a short executive session during the Council’s regular meeting.

My Comment Upon This Item.

When word first reached Altus that Luscombe Aircraft had plans to move into town, I had done a bit of research upon them. My findings were all in the negative and results were sent to the Altus Times and the City Council. My concern was, Luscombe would close and file for bankruptcy leaving all of the investors including the City, holding onto a white elephant.(Luscombe Aircraft is noted for doing just that.) I was assured this would never happen and that this would be a boom for Altus.

Now my question/s is, if I can perform a quick search on Luscombe, why couldn't the City Council have done the same? Also, about how much will have the City and other investors have lost? Could this subject matter have been foreseen many months ago, hence the recent raise and extension of taxes having taken place? You must admit, this doesn't look very good for all the powers that be.
Greer County Kid

Temple City, CA

#2 Jan 22, 2009
Well said.......Case Closed
Intune

Oklahoma City, OK

#3 Feb 17, 2009
Wait Wait Wait!! That's not it! What about the 200,000 given to them in a secret meeting? The press was not invited nor informed. 3 city council memebers were not present at the meeting, nor did they know anything about the meeting until after they had voted to give them an aditional $200,000+ in a legitimate meeting weeks later.

When we vote for City council and Mayor, if it says re-elect... Don't.
Intune

Oklahoma City, OK

#4 Feb 17, 2009
Intune

Oklahoma City, OK

#5 Feb 17, 2009
I'm sorry, the Special meeting was on Sept 2nd, the annual meeting was before the secret meeting.
Intune

Oklahoma City, OK

#6 Feb 17, 2009
"Question 1. Were the citizens deceived about how much was being loaned?
Were the people of Altus kept in the dark about a $220,000 loan the city/county's Economic Development Corporation made to Quartz Mountain Aerospace just days before the City Council met and agreed to loan Quartz Mountain Aerospace another $200,000. Both organizations share common board members who were present at both meetings.
Question 2. Were the citizens deceived again on how the money was used?
The City of Altus and Economic Development Corporation combined loaned Quartz Mountain Aerospace some $420,000 using the claims money would be used to pay employees. Yet Quartz Mountain Aerospace had already failed to pay payroll withholdings. And, kept failing to pay even after receiving public funds.
Download meeting minutes
Altus/Southwest Area Economic Development Corporation Board - August 21, 2008. Download
Altus City council - September 2, 2008. Download
At least three people involved with the city council are listed on the Economic Development Corporation meeting minutes as present and voted to approve loaning Quartz Mountain Aerospace the $220,000. Mayor Gramling - City Councilman Garrett and City Administrator Nettles. But, does anyone remember any of these mentioning the Economic Development Corporation loan at the city council meetings?
Intune

Oklahoma City, OK

#7 Feb 17, 2009
Question 3. Did those responsible fail to properly register the liens?

According to the minutes of the Economic Development Corporation meeting one of the Quartz Mountain Aerospace planes was to be used as collateral. Assets were also promised as collateral for the $200,000 loan from the city.

Some are now questioning if all the liens were properly filed. Quartz Mountain Aerospace is rumored to currently be seeking capital. Unfiled liens could result in those considering loaning money to Quartz Mountain Aerospace from discovering the real story during background checks. Not to mention this could leave the public without protection against default.

Question 4. Did those responsible fail to insure the borrower QMA had loss and damage insurance on the collateral?

If liens were not filed, then it is likely no one bothered to insure the collateral was protected against losses and damages. The same as when someone takes out an home, auto, boat, etc. loan the borrower is required to provided insurance to protect against losses and damages.

Should the City and Economic Development Corporation have been forthcoming with this information or is this considered acceptable conduct in Altus?

Is the City and Economic Development Corporation devoting as much time and effort to protect the public interest as they are to helping their friens QMA. QMA, a company that has failed to take care of its employees who are the same citizens those on the city council and Economic Development board are using their tax money and are supposed to be protecting? Doesn't the power and authority to make these decisions come with responsibilities? Or, is it all authority to give away public money without bothering with the most commonly accepted practices of protecting against wrong?

With all the claims of financial misconduct and lawsuits surrounding Quartz Mountain Aerospace, Altus Ventures and First State Bank Altus this is the kind of information taxpayers have a right to know.

Now there is more!

Now we are hearing reports that Quartz Mountain Aerospace is some $90,000 behind on city utilities and another approximately $10,000 behind on airplane fuel. Yet city officials don't seem to be treating this the same way other businesses are treated.

Is QMA receiving special treatment? If so then why would QMA receive special treatment? Does anyone know the identities of those having ownership in QMA? That seems like an appropriate question; especially consider all the special treatment QMA seems to be receiving.

Then there is that question of what happened to the $189 million that according to 2006 news reports Altus Ventures claimed would be invested in Quartz Mountain Aerospace in order to receive some $64 to $66 million in tax credits.(Tax credits that were allowed to be sold for cash.) Who received the money from those tax credits as profits? Wouldn't it seem right that Altus Ventures cough up the rest of what they claimed to invest to pay employees what they have coming, pay off the city and Economic Development Corporation? How come these employees and their families; and the citizens have to lose so others can enjoy a huge 200% profit for doing nothing?

For More, Visit http://prowlingowl.com/AltusVentures/Undisclo...
Intune

Oklahoma City, OK

#8 Feb 17, 2009
Question 1. Were the citizens deceived about how much was being loaned?

Were the people of Altus kept in the dark about a $220,000 loan the city/county's Economic Development Corporation made to Quartz Mountain Aerospace just days before the City Council met and agreed to loan Quartz Mountain Aerospace another $200,000. Both organizations share common board members who were present at both meetings.

Question 2. Were the citizens deceived again on how the money was used?

The City of Altus and Economic Development Corporation combined loaned Quartz Mountain Aerospace some $420,000 using the claims money would be used to pay employees. Yet Quartz Mountain Aerospace had already failed to pay payroll withholdings. And, kept failing to pay even after receiving public funds.

Download meeting minutes
Altus/Southwest Area Economic Development Corporation Board - August 21, 2008. Download
Altus City council - September 2, 2008. Download

At least three people involved with the city council are listed on the Economic Development Corporation meeting minutes as present and voted to approve loaning Quartz Mountain Aerospace the $220,000. Mayor Gramling - City Councilman Garrett and City Administrator Nettles. But, does anyone remember any of these mentioning the Economic Development Corporation loan at the city council meetings?
Just Another Okie

Altus, OK

#9 Feb 17, 2009
17 February 09 Quartz Mountain Aerospace Update...

Reported just a few short minutes ago by kwhw radio:

"LOCAL: Underwriting is nearing completion for a bond offering that will help Altus airplane producer Quartz Mountain Aerospace pay critical debts so they can continue production efforts of small aircraft for flight schools and individuals around the country. Underwriters announced yesterday that the group is in the final stages of closing a structured financing that should materially benefit QMA. This financing project originally was anticipated to be completed last fall; however, the chaos and uncertainty in the national economy has delayed completion of the financing until now.

QMA chairman BILL NEWLAND said the financing will provide necessary funds to take care of current critical financial obligations, including debts to employees, banks, the City of Altus, and vendors. He added that the company realize the stress of developments, and they are forever grateful for the supporters for their patience. He said they have an optimistic outlook for selling airplanes."

This story sounds all to familiar and has the ring of keeping the hounds at bay. It would appear that QMA would have manufactured ultralight aircraft at the start and sold same just to help make ends meet. Ultralights are fairly cheap to make and the return profits are plentiful.

For a more detailed report as to the real goings on at QMA and the City Of Altus, I do highly suggest you visit the following site: http://prowlingowl.com/index.cfm
Just Another Okie

Altus, OK

#10 Feb 18, 2009
On the 10th of February, Attorney Catherine Coke stated:

"As for the City being named in the First National Bank loan, Coke said she filed an entity of appearance on Feb. 3 on behalf of the Trust to extend them another 20 days to prepare their case in the FNB lawsuit. She also said that the Altus/Southwest Area Economic Development Corporation isn’t really a part of the “City of Altus” so the $220,000 awarded QMA in August wouldn’t be added to the final total amount owed the City."

My understanding is, the Economic Development Corporation is put together and monitored by, the Altus City Council. So how could this entity not be apart of the City Of Altus? And just where or by whom did the $220,000 originate from?
Guy Ginbey

Desert Hot Springs, CA

#11 Mar 23, 2009
As a vendor , we have not received on a payment for materials we sent them to build aircraft...
Just Another Okie

Altus, OK

#12 Mar 24, 2009
Quartz Mountain Aero is located on the north side of Altus. Its been many weeks since any and I mean, any activity has been seen taking place, in or around that place. Its almost as if they have moved out, lock, stock and barrel.
I'm sorry for your loss Mr. Ginbey. Everyone seems to have taken QMA at face value and never bothered, to check into what their past track record might be. Found that QMA has gone by many names, have been located in many different places, used many communities and scammed millions from well meaning folks, just like yourself. I brought this matter before our local city counsel, county commissioners, wrote our local newspaper and even our mayor, having warned them all and what could very well happen. I was looked at like some crazy ole fool not knowing Adam from Eve. All it took, was to spend sometime banging away on the ole keyboard to find out, what was what, who the people are behind this scam and sorry to say, a list of those who were walked over. If I could do this, then why couldn't anyone else have?
If you don't mind answering, what kind of materials did you supply? Since Altus played a major roll in QMA, why not contact them to see what might be done, to recoup lost funds? I'd start with Catherine Coke, who is the City Attorney. She can be contacted at: http://www.cityofaltus.org At least that is a possible start.Please keep us posted?
Jones C Clarke

Malaysia

#13 Apr 25, 2009
Now I know QMA is a crook
PaulDonJoeJohnDJ andaskank

Lincoln, NE

#14 May 1, 2009
Anybody notice that all the planes are now down in Daytona Beach Florida, registered to yet another "fund" this new one is Energy Ventures (LLC of course). How do the people named above even sleep at night, what a bunch of CRIMINAL SCUMBAGS!
Just Another Okie

Altus, OK

#15 May 3, 2009
PaulDonJoeJohnDJandaskank, do you have a listing or url on these scumbags down in Florida? Thanks!
Run em out on a RAIL

Lincoln, NE

#16 May 7, 2009
C' mon people, Altus is a small town, with even smaller mindsets...this has been going on for years. Don't be surprised if ol Sloppy-Joe don't show up in some other ALTUS SCAM, remember the sporting goods company? Now its Luscombe turned QMA gone broke...anybody see a trend here?
Troy Jones

Wichita, KS

#17 Jun 19, 2009
My wife and I have a background in aviation. We were working in Kansas at Cessna Aircraft. Great jobs and security. Knew Quartz Mountain Aerospace vice president. We were deceptively hired by him into leaving Kansas and everything behind that we worked so hard for to go to Oklahoma. Company was and is corrupt and has duped everyone. Alot of great people worked there. And then there were those that were and are in key positions at QMA that should be imprisoned. I encourage all of the wronged employees to band together and quit fearing these bastards. Some of you have commented that you don't want to upset the company because you might not get your job back if they reopen. Come on people! My wife and I lost everything! Many of you as well! We lost our credit, dignity, personal possesions and more! They don't owe my wife any back wages, but they owed me about four grand when I left in October of 2008. I filed with the Oklahoma Department of Labor in November of 2008. Haven't seen one damn penny yet. The state gave them until January of 2009 to pay up! Still no money! So, the state doubled the original amount then tacked on an extra $120 per day! QMA now owes me over $20,000. What I can't figure out is, each time I call the labor representative that is handling my claim against QMA I get a different story about the progress of my case. One other thing I could never figure out. The guy in the office at the QMA plant that does the books was always there evenings or weekends, hell it didn't matter when it was, he was always there! Wonder what he was cooking? Hm! Maybe the damn books!!!! Crooked bastards!!!! I beleive QMA is the Devil's Playground!!!!!
Just Another Okie

Altus, OK

#18 Jun 20, 2009
Damn Troy, how I feel for you and that family of yours! The only thing that I might be able to do, is suggest you contact our local state rep. His name is Charles Ortega and is quite knowledgeable and has a outstanding staff. Think you might want to make contact with him? Just a shot in the dark, but sure at this point in time, that's far better then nothing. He can be reached at: charles.ortega@okhouse.gov Hope this works out for you!! Also, please keep us informed of any progress you might have?
Tickedoffluscomb einvestor

Arkansas City, KS

#19 Jun 22, 2009
Troy,
It is against the law in Oklahoma for a company to entice someone by making false statements to move to and work in Oklahoma. You might want to have your lawyer check that out. Further, since you now live in Kansas, any suit you bring against Quartz Mountain Aerospace can be filed in Federal Court in OKC, not in Jackson County, home of the "good old boys".

I do believe you were warned by a former member of QMA upper management, who left QMA in disgust after CEO Mark Arciero was brought in, that things were not right at QMA and you should think twice before moving down there, though.

What I don't understand is why the stockholders of QMA have asked no questions about why Mark was brought in, why the board of directors thought a CEO was even needed. Why did the board of directors give him free rein, with no supervision? The board was clearly derelict in their fiduciary duty when they hired a man with no general aviation experience, who was reportedly fired from his last two positions, and was essentially unemployed for two years before being hired by the QMA board of directors at an exorbitant salary. I am wondering how the headhunters Heinrich & Struggles are going to spin Mark's resume' for the next job they find him?

As for the QMA VP you knew at Cessna; having known him at Cessna you had to know he did not have the experience needed to hold an upper management level position at QMA or any other company. He talks a lot, but how much does he really know about the general aviation business? Very little it seems, considering the shambles QMA was in during his tenure.

Why isn't the QMA board of directors suing Heinrich and Struggles for recommending someone so clearly unsuited to be CEO of an aircraft company? Why did the board turn the company over to Mark Arciero with no supervision? Did nobody protest the millions of dollars spent by Arciero? Where did the money come from? It certainly did not come from the sale of aircraft.

I too am very bittter about what has happened at Quartz Mountain Aerospace. The company was so close to making a go of it before Mark was brought in that the employees could taste successs. Altus could have had a small aircraft company, hiring local people at good wages, and Altus needs good jobs to keep the young people at home. It is just a rotten shame what has happened.
Just Another Okie

Altus, OK

#20 Jun 23, 2009
Very well said Tickedoffluscombeinvestor!

Does anyone happen know what the tail number is of the plane, that is being held for collateral might be? Reason being, I've located a great many newer Luscombe aircraft down in Florida, that are for sale. I also believe, these same aircraft might have been manufactured right here, in Altus.

Tell me when this thread is updated:

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