cryptogon.com

One of the men listed as the registered owners of the plane, Joao Luiz Malago, said in a telephone interview from Brazil that his Florida-based company sold the aircraft for $2 million on Sept. 16 to a Lakeland, Fla., man and his partner, who Malago believed was from Miami.

Malago said he feared the man was dead because he hasn’t been picking up the phone.

Officials at the U.S. Embassy in Mexico had no information on any American citizens being killed or arrested in connection with the aircraft, a 1975 model Gulfstream II.

“We’re in the process of a judicial investigation that the Mexican government is conducting and we are providing information,” said an embassy official, who wasn’t authorized to speak on the record. “Part of that investigation is to find out more about where this plane came from and who had it before.”

Some news reports have linked the plane to the transport of terrorist suspects to the U.S. detention center at Guantanamo Bay, Cuba, but those reports cite logs that indicate only that the plane flew twice between Washington, D.C., and Guantanamo and once between Oxford, Conn., and Guantanamo. No terrorist suspects are known to have been transferred to Guantanamo directly from the United States.

The jet, carrying the tail number N987SA, changed hands twice in recent weeks. But how it ended up in the hands of suspected drug traffickers remains a mystery.

The Mexican attorney general’s office said the blue and white Gulfstream II crashed on Monday in a remote jungle area on the Yucatan Peninsula. Authorities seized 132 bags of cocaine weighing four tons. Two men were arrested and jailed on drug trafficking charges in Merida, officials said. They declined to identify the men, however.

The aircraft was sold on Aug. 30 to Donna Blue Aircraft, owned by two Brazilians: Malago and his partner Eduardo Dias Guimaraes. In separate telephone interviews from different parts of Brazil, both men said they’d sold the aircraft to two Florida men on Sept. 16.

“We are not the owners of the plane,” said Guimaraes, reached in Goiania in central Brazil.

He deferred most questions to his partner, Malago, who said from Sao Paulo that Donna Blue purchased the aircraft in July from a company that had owned it for 10 years, and then flipped it quickly to two Florida businessmen who paid for it in full.

McClatchy is withholding the names of the alleged new owners of the plane because they couldn’t be reached for confirmation.

The Gulfstream was awaiting documentation when it departed on Sept. 18 at 5:10 pm from Fort Lauderdale Executive Airport to Toluca, outside Mexico City, Malago said. He said he learned of Monday’s crash after receiving a call from an insurance company, but had been unable to reach the new owner by phone and feared he was dead.

He said he knew nothing of the plane’s history or what use it had been put to previously. He said he’d been a pilot for 25 years and had bought and sold planes throughout Latin America. “Generally you don’t know the history of the plane,” he said.

The business jet that was transporting the dope to Mexico from Colombia was purchased just a week before the crash by a U.S. pilot with a history of legal and financial problems in Florida, interviews and official records indicate, but whether the pilot still owned the plane at the time of its crash is unknown.

The complex sale of the Gulfstream II jet and its end in the Mexican jungle highlight the increasingly complicated illicit drug trade. A recent report by the U.S. Government Accountability Office said the trade generates as much as $23 billion a year for Mexico-based drug cartels.

U.S. authorities say as much as 90 percent of the cocaine sold in the U.S. is shipped through Mexico.

At least three suspects, including a Mexican pilot, are in Mexican custody. Mexican authorities say two of the men offered them money if they would give back the cocaine and release any crewmembers.

The Gulfstream II departed Fort Lauderdale, Fla., on Sept. 18. In the days between then and the plane’s crash, it apparently flew to Mexico, then to Colombia and was on its way back to Mexico when Mexican anti-drug aircraft intercepted it.

“The cocaine was to be delivered to El Chapo,” said an official in the Mexican attorney general’s office, who spoke on condition of anonymity. “We do know it was from Colombia.”

Guzman has acquired an almost mythic status in Mexico. After breaking out of jail in 2001, he has repeatedly eluded capture and is revered in some parts of this impoverished nation as a Robin Hood figure who distributes some of his ill-gotten gains to the poor.

How the U.S.-registered Gulfstream ended up in the hands of Guzman’s violent Sinaloa Cartel isn’t clear.

A bill of sale obtained by McClatchy Newspapers indicates that Florida pilot Clyde O’Connor bought the plane on Sept. 16 — eight days before it went down in the Yucatan jungle. Another Florida pilot, identified by his license number and signature as Greg Smith, also signed the document, but his relationship to O’Connor isn’t detailed.

According to electronic court records, O’Connor, 42, was found guilty of criminal safety violations — described as “improper/insufficient safety equipment or lights” — in 2001. Records also show two bankruptcy filings, one in 1997 and another in 1998.

Ten years later, his financial problems apparently had abated. Two Brazilians — the last registered owners of the plane — said O’Connor wired them $2 million to purchase the business jet earlier this month.

The Brazilians provided McClatchy with the bill of sale, but the Federal Aviation Administration said it hadn’t received the change-of-ownership paperwork.

Attempts to reach O’Connor and Smith weren’t successful; the listed phone number for one of O’Connor’s companies, Execstar Aviation in Fort Lauderdale, was disconnected.

Interviewed by phone from the Brazilian city of Sao Paulo, one of the Brazilians, Joao Luiz Malago, said Friday that O’Connor and Smith had told him they planned to resell the aircraft. The FAA confirmed that the two men are licensed Florida pilots in good standing.

Malago said O’Connor struck a hard bargain, negotiating him down from a desired sale price of $2.3 million to $2 million.

“This guy was a pain,” recalled Malago. “Finally we got to a point that we found a good number for me and for him was $2 million.”

Logs found on a plane-tracking Web site, www.flightaware.com, show that a flight plan was filed for the Gulfstream two days later for a trip from Fort Lauderdale to Cancun, but who piloted the craft is unknown. FAA records show that neither O’Connor nor Smith was certified to fly a multiengine aircraft like the Gulfstream. The plane crashed near Merida, 200 miles from Cancun.

Getting to the bottom of the plane’s ownership and circuitous trajectory are key pieces of a criminal investigation that Mexican authorities are conducting with the aid of American diplomats and law enforcement, including the U.S. Drug Enforcement Agency, officials said.

“U.S. law enforcement and other government authorities are still looking into the history of the plane and its ownership and any possible implications that would have for criminal activity,” said Judith Bryan, a spokeswoman for the U.S. Embassy in Mexico.

Malago and his business partner, Eduardo Dias Guimaraes, had owned the plane only since August, when their Florida-based Donna Blue Aircraft, an aviation sales company, bought the plane from a holding company owned by New York real estate developer and thoroughbred horse owner William Achenbaum.

Adding to the plane’s mystery are allegations that it made trips in 2003, 2004 and 2005 between the United States and Guantanamo Bay, Cuba, where the U.S. detention center for suspected terrorists is located.

NetBank marked the largest bank to fail since since the early 1990s, which marked the end of the savings and loan crisis. The Office of Thrift Supervision closed NetBank at 3 p.m. EDT, the federal regulator said, and the company was immediately taken into receivership by the Federal Deposit Insurance Corp.

The OTS said weak underwriting standards, failed business strategies, and a lack of proper controls forced NetBank to suffer significant losses starting in 2006.

“They had significant problems with respect to loan underwriting, poor documentation, and a high amount of early payment defaults,” OTS spokesman Kevin Petrasic said. “All of those factors led to fairly significant losses that increased substantially in 2007.”

The OTS said NetBank’s board of directors unsuccessfully tried to orchestrate a private sale of the company.

“These efforts were unsuccessful, and the institution had no remaining prospects for raising capital and achieving profitability,” the OTS said.

NetBank doesn’t have branches, and its business model is based on interacting with customers over the Internet.

Bank failures have become very rare because of recent strong performance by the U.S. banking industry. But problems, particularly related to mortgage lending, has put pressure on many financial institutions, particularly smaller banks. For example, the FDIC said last month that loans at least 90 days past due rose in the second quarter by $11.4 billion, or 36%, compared with the second quarter of 2006.

Awarded by the Pentagon’s Counter-Narcoterrorism Technology Program Office in Dahlgren, Va., the contract vehicle has a potential value of $15 billion over five years. One participant is ARINC, a Maryland-based provider of airline communications systems.

“This gives us the opportunity to bid on this work,” said Linda Hartwig, an ARINC spokesperson. “We don’t have a lot of details yet, but we do know that this is an expansion of what [the U.S] is already doing to fight drug trafficking, and that 80 percent of the work will be overseas.”

Hartwig said the other participating vendors are defense giants Lockheed Martin, Northrop Grumman and Raytheon, and security contractor Blackwater USA. Blackwater confirmed its participation, but the other vendors did not respond to inquiries.

New homes sold at an annual pace of 795,000 in August, according to the Census Bureau, down 8 percent from the revised 867,000 sales pace in July.

It was the slowest pace of sales since June 2000, as buyers had trouble finding mortgages or selling their existing homes. Economists surveyed by Briefing.com had forecast that sales would fall to a pace of 825,000.

The report also showed the median price of a new home fell 7.4 percent from year earlier levels to $225,700 in the month, as prices were pressured by both the problems in mortgage finance and the excess supply of homes on the market.

The inventory of new homes on the market rose to an 8.2 month supply, as the glut of completed homes without a buyer was near a record high, with 180,000 completed homes listed for sale, just off the record high of 182,000 set in May of this year.

US President George W Bush urged the UN to uphold the Universal Declaration of Human Rights, the document that led to other human rights conventions over the past 60 years dealing with the freeing of people from tyranny, violence, hunger and diseases.

“As we gather for this 62nd General Assembly, the standards of the declaration must guide our work in the world,” Bush said.

“The mission of the United Nations requires liberating people from tyranny and violence,” Bush told the body, in which many governments had disagreed with his policy in Iraq and global anti-terror campaign.

France’s President Nicolas Sarkozy, in his first appearance before the assembly, called on the UN to avail itself as an instrument for a “new world order of the 21st century.”