Federal action filed against aircraft operator for sham dry lease scheme

HOUSTON - A civil penalty action has been filed under the False Claims Act against Walter Benjamin Bius and his solely owned company, Prairie Flower Air Asset Company LLC, announced U.S. Attorney Nicholas J. Ganjei.

The complaint alleges Bius knowingly operated Prairie Flower, based in Huntsville, as a direct air carrier without the required Federal Aviation Administration (FAA) certification. A direct air carrier is one who provides, or offers to provide, air transportation and who maintains control over the operational aspects of those flights. To operate as a direct air carrier, one must hold an FAA-issued certificate after demonstrating they meet the requisite requirements.

The complaint alleges Bius uses what is known in the industry as a "dry lease" to circumvent the FAA requirements for direct air carriers, which purportedly creates an illegal charter service.

Between 2019 and 2023, Bius and Prairie Flower allegedly chartered at least 237 flights for various clients under dry leases. The civil complaint alleges each flight violated at least 16 FFA regulations.

Of the alleged regulation violations, the most serious include pilots operating the aircraft without passing competency checks or instrument proficiency checks required under FAA regulations. The complaint also alleges there were instances in which Bius illegally flew the plane himself.

"When people choose to book private charter travel, they need to feel confident that the company transporting them meets all applicable safety and regulatory standards," said Ganjei. "This action will help ensure the safety of air transportation and safeguard the public from carriers that might endanger passengers by cutting corners."

"Today's announcement should cause people to think twice before choosing to intentionally ignore federal aviation regulations and requirements," said Special Agent in Charge Joseph Harris, Department of Transportation - Office of Inspector General (DOT-OIG), Southern Region. "We will continue to partner with law enforcement and prosecutors to pursue those whose actions jeopardize the safety and integrity of the nation's airspace."

DOT-OIG conducted the investigation with the FAA. Assistant U.S. Attorney Ariel Wiley is handling the matter.