Jet One Jets Alleges Competitor Engaged in Fraud

 - October 16, 2008, 11:55 AM

Charter broker Jet One Jets is seeking more than $60 million in compensatory and punitive damages from Halcyon Jet Holdings and brokerage firm Halcyon Jets for allegedly defrauding the company of its employees and customers. Court documents filed with the United States District Court for the Eastern District of New York allege that Halcyon and five other defendants listed in the lawsuit have demonstrated a “pattern of racketeering” and are guilty of mail fraud, wire fraud, theft of proprietary information and customer lists and “willful and malicious acts.” The court documents also list brokers Blue Star Jets and A-List Jets as victims of Halcyon’s “ongoing scheme to defraud.” Blue Star Jets would not comment on the lawsuit, and A-List president Gordon Bijelonic denied that his company is a “victim. We have no issue with Halcyon Jets,” he told AIN. According to Jet One Jets attorney Steve Legum, Halcyon paid a Jet One Jets employee $50,000 to provide proprietary information to Halcyon, and “stole” five to 10 employees and information on more than 100 customers. Halcyon also knowingly provided to the public and Jet One Jets false information about its management, Legum said. The document asserts that Alfred Palagonia, a former securities broker who pled guilty in 2001 to corruption and fraud charges, has been “secretly continuing to run and make all executive decisions on behalf of Halcyon.” Legum told AIN that Palagonia is continuing a trend of “predatory practices.” At press time, Halcyon had not returned AIN’s queries seeking comment.