Federal law enforcement officials announced that a federal jury convicted the owner of an aircraft leasing company and his corporation on fraud and obstruction charges for engaging in a fraudulent financing scheme that raised more than $50 million from investors and lenders.

Brian Hollnagel, the owner, president and chief executive officer of BCI Aircraft Leasing and the corporation itself were each convicted of six counts of wire fraud and one count of obstruction of justice for obstructing a Securities and Exchange Commission lawsuit against them.

The jury deadlocked on a second obstruction count against Hollnagel and BCI, as well as on all three wire fraud counts against co-defendant Craig Papayanis, who held various positions at BCI, including managing director and chief financial officer. BCI bought, sold and leased commercial airplanes and operated first in Naperville and later Chicago.

On each count of wire fraud, Hollnagel faces a maximum penalty of 30 years in prison and a $1 million fine, or a fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. He also faces a maximum prison term of 20 years and a $250,000 fine for obstructing the SEC lawsuit. As a corporate defendant, BCI faces fines and terms of probation.

According to the trial evidence, between at least early 2000 through early 2009, Hollnagel, BCI and others fraudulently obtained and retained financing and other funds for BCI and enriched themselves to the detriment of investors and lenders.

Three other co-defendants, two of whom testified as government witnesses in the trial, pleaded guilty in the case and are also awaiting sentencing. They are: Jason R. Hyatt, an owner of Hyatt Johnson Capital, an investment company that offered and sold to its customers investments totaling more than $20 million in BCI aircraft financing deals; Robert Carlsson, of Chicago, a licensed securities broker who raised more than $20 million for BCI from outside investors, and who, at various times, was a managing director for BCI, chief executive officer of BCI Capital Management, and owner of 21 Capital Group, a registered securities broker-dealer; and Brian Olds, of the Dallas area, who accepted more than $400,000 in bribes as part of the scheme.

U.S. District Judge Amy St. Eve scheduled a status hearing on April 2 for further proceedings, including forfeiture of assets and the government’s post-trial motion to revoke Hollnagel’s $1.7 million secured bond.

To read U.S. Attorney Patrick Fitzgerald’s press statement click here.