(Stillwater, Okla.) — A Cushing man accused of illegally trading an airplane while it was mortgaged for a loan from the Bank of Cushing has been ordered to appear in court Feb. 6 on a felony charge of unlawful disposal of secured property.
Larry Dale Morgan, 67, who is free on $25,000 bail, has also been ordered to appear in court Wednesday on a misdemeanor charge of burn ban violation in drought conditions.
In the felony case, Bank of Cushing President John Bryant reported to Cushing Police Officer Rachel Hentges on June 30,2011, that “Larry Dale Morgan had traded a mortgaged plane to John H. King and had made no attempts to make payment on the lien,” according to an affidavit by Cushing Police Detective Adam Harp.
Bryant said that the Bank of Cushing has a collateral interest in a twin engine plane and a 1961 Beech Bonanza airplane, which was traded for a 1969 Cessna 421A, the affidavit alleged.
“Bryant indicated the Bonanza was collateralized on Feb. 11, 2010, for $41,945 with an interest rate of 5.750% per the Federal Aviation Administration aircraft security agreement Morgan signed on Feb. 11, 2010,” the affidavit alleged.
“Bryant reported the Bank of Cushing was unaware of any trade Morgan was about to do with Queen of Hearts Aviation and was not in agreement with the trade,” the affidavit alleged.
“Bryant advised that Queen of Hearts did not wish to pay off Morgan’s indebtedness. According to Bryant, President of Queen of Hearts Inc. John H. King requested the lien be removed from the Beech Bonanza, which his company now owns, and be reassigned to the Cessna, which Morgan now owns,” the affidavit alleged.
According to the FAA online registry, the Beech Bonanza is currently registered to Queen of Hearts Aviation Inc., as of Dec. 17, 2010, and the Cessna is currently registered to Larry D. Morgan as of April 14, 2011, the affidavit alleged.
“Bryant said he had attempted to correspond with Morgan regarding the airplane trade and outstanding lien. Bryant stated he had learned Morgan received a check and was able to pay the amount owed to Bank of Cushing,” in June 2011, the affidavit alleged.
On July 1, 2011, Officer Hentges spoke with John King of Queen of Hearts Aviation, based in Delaware, by telephone regarding an airplane trade between himself and Morgan, the affidavit said.
“King reported Morgan contacted him after listing his Cessna airplane for sale. King reported Morgan offered him a straight trade for Morgan’s Beech Bonanza and an instrument panel,” the affidavit alleged.
“King said that after the trade, he found out Morgan had forged the Beech Bonanza’s documents concerning a new engine, falsified the log books about the engine overhaul, and forged a mechanic’s name regarding an inspection,” the affidavit alleged.
“King reported the airplane he received from Morgan is not ‘airworthy’ as Morgan represented in the trade and cannot be used in its current condition due to the falsified records and unrecorded repairs,” the affidavit alleged.
“King said he did still have possession of the plane and in order to make it airworthy, it would cost him $45,000. King said that as is, the plane is grounded and cannot be used,” the affidavit alleged.
“I have attempted to contact Morgan by telephone, but have not been able to get a hold of him. I have left a message for him to contact me back, but he has not,” the Cushing police detective wrote in his affidavit filed last summer.
In his misdemeanor case, Morgan is alleged to have on March 25, 2011, “set fire to grass, woods or other wild lands within Payne County during a period when, because of emergency drought conditions, the governor had proclaimed a ban on such burning because of extraordinary danger,” and the Payne County Commissioners on March 21, 2011, passed a resolution prohibiting such burning effective that day through April 15, 2011.
Five Cushing firefighters and a Payne County sheriff’s deputy are listed as prosecution witnesses in that case alleging a burn ban violation in drought conditions.
If convicted of that charge, Morgan could be jailed for one year. If convicted of his felony charge of unlawful disposal of secured property, Morgan could be imprisoned for three years.
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