‘The greatest betrayal I have ever experienced:’ Sir Peter Jackson commenting on frauds perpetrated by former employee Eugene John DeMarco. DeMarco was sentenced to two years five months imprisonment for an elaborate series of lies when selling replica vintage aircraft owned by Jackson’s company, Vintage Aviator Ltd.
The High Court was told DeMarco brokered the sale of three Vintage Aviator aircraft to New Zealand Warbirds Association in 2016. Funding came in part from a Warbirds’ enthusiast. Warbirds was told there was an excess mark up of $622,000 on the list price because Warbirds’ benefactor was a friend who wanted to put extra money in DeMarco’s pocket. This was a lie. The benefactor had never met DeMarco and was unaware of the mark-up, thinking he was paying list price. Of the $2.1 million paid for three aircraft, none went to Vintage Aviator. DeMarco diverted payment to a company he owned, a company called The Old Stick and Rudder.
DeMarco’s Old Stick and Rudder was used to perpetrate a separate fraud involving a P-40 Kittyhawk. A DeMarco friend paid US$500,000 for what he thought was purchase of the aircraft and a share in Old Stick and Rudder. The signed paperwork did not in fact transfer Kittyhawk ownership but did prohibit DeMarco from using the aircraft as collateral for any loans. Despite this prohibition, DeMarco gave mortgage security over the aircraft when refinancing a bank home loan. He fraudulently represented to the bank that he had unqualified authority to use the Kittyhawk as security.
In 1999, a United States court conditionally discharged DeMarco following his conviction for possessing a stolen aircraft.
R. v. DeMarco – High Court (5.12.19)
20.007