The Serious Fraud Office (SFO) has raided an address and arrested one individual as part of a criminal investigation into AOG Technics Ltd, the company accused of supplying unauthorised plane engine parts to major international carriers.
AOG Technics was accused in September of a "deliberate, dishonest and sophisticated scheme” to supply unauthorised engine parts that ended up in Boeing aircraft.
Lawyers of jet engine maker CFM International told the High Court how AOG potentially sold thousands of engine components using forged paperwork, causing Virgin Australia (ASX:VAH), Southwest Airlines (NYSE:LUV) and United Airlines to ground some aircraft when the news came to light.
Ryanair Holdings PLC (LSE:RYA) was caught up in the scandal earlier this month after reporting the discovery of unauthorised aircraft components in two engines.
Barrister Matthew Reeve KC of Quadrant Chambers said there was "compelling documentary evidence that thousands of jet engine parts have been sold by (AOG) to airlines operating commercial aircraft fitted with the claimants' jet engines.”
Little is known about AOG.
According to Companies House filings, the company has one director, Jose Alejandro Zamora Yrala, who is also listed as a director at Sunwave Solutions Ltd and Kensho Group, the former of which dissolved earlier this year.
AOG has taken down its website since the ‘fakes on a plane’ scandal came to light, while Zamora Yrala does not have an active LinkedIn profile.
Nick Ephgrave QPM, director of the Serious Fraud Office, said: “This investigation deals with very serious allegations of fraud involving the supply of aircraft parts, the consequences of which are potentially far reaching.
“The SFO is best placed to take this investigation forward vigorously and we are determined to establish the facts as swiftly as possible.”
The SFO has not disclosed the name of the individual under arrest.