U.S. Department of Transportation Federal Aviation Administration Office of the Chief Counsel Enforcement Division Western Team P.O. Box 92007 Los Angeles, CA 90009-2007 FEDEX - OVERNIGHT MAIL, CERTIFIED MAIL-RETURN RECEIPT REQUESTED AND FIRST CLASS MAIL JAN 1 2 2016 MR. ARNOLD GERALD LETO Irvine, CA RE: Arnold Gerald Leto, Case Nos. 2015WP050018 and 2015WP190146 EMERGENCY ORDER OF REVOCATION Pursuant to Title 49, Sections 44709 and 46105(c) of the United States Code, the Administrator has determined that an emergency exists related to safety in air commerce, and that immediate action to revoke your airman pilot certificate(s) is required. The reasons for this determination are set forth in the paragraph below entitled "Determination of Emergency." Based on an investigation and all evidence presently before the Administrator, he finds that: 1. You hold Airline Transport Pilot Certificate No. and Flight Instructor Certificate No.. 2. At all times relevant herein, you were the president and agent for service for Aviation Financial Services, Inc. a California Corporation, which does not hold any operating certificates issued by the FAA pursuant to 14 C.F.R. part 119. 3. Civil aircraft N670JD is a Cessna Model S550. 4. N670JD is the property of another, and was leased by a company you represent. 5. The Cessna Model S550 is a turbojet-powered, multiengine airplane. 6. The Cessna Model S550 is a large airplane, as that term is defined in 14 CFR 1.1. 7. The FAA type certificate for the Cessna Model S550 states the number of passengers (exclusive of crewmembers) is eleven (11). 8. The FAA type certificate for the Cessna Model S550 requires, as Minimum Crew, a pilot and co-pilot.
2 9. On March 11, 2015, an FAA designated pilot examiner (DPE) administered to you a Cessna "CE-500" type rating check ride. 10. You asked the DPE what it would take to operate a Cessna Model S550 as a single pilot. 11. The DPE told you that there were only two ways for a pilot in command to operate as single pilot: a. The FAA certificates the aircraft to be flown with a single pilot; or b. The FAA issues a single pilot exemption for operation of the aircraft, and the pilot in command completes an FAA-approved single pilot course for the aircraft series. 12. The DPE told you that an appropriately rated second in command pilot is required to operate N670JD, a Cessna Model S550. 13. You knew that you had not completed an FAA-approved single pilot course to operate under the terms of any single pilot exemption. 14. You served as a Corporate Officer and as the chief pilot, which is a management official required under 14 CFR part 119, for JetSet Aviation, LLC, d.b.a. Hybrid Air, an air carrier operating under 14 CFR part 135. The FAA revoked Jet Set Aviation's part 119 certificate in 2013. 15. You also owned and operated another company that previously held a part 119 certificate to conduct operations under part 13 5. 16. You operated, as pilot in command, N670JD, as follows: a. On or about January 30, 2015, from Santa Monica, California, to Phoenix, Arizona. b. On or about April 9, 2015, on more than one flight between Burbank, California, and Bermuda Dunes, California. c. On or about April 14, 2015, from Santa Monica Airport to Bentonville, Arkansas (Northwest Arkansas Regional Airport), arriving April 15. 17. On each of the flights described in paragraph 16, you were the only pilot on board. 18. On the January 30 flight, you did not hold a type rating for the Cessna Model S550. 19. On the January 30 flight, you carried a passenger. 20. On the April 9 flights, you carried passengers. 21. On the April 14 flight, you carried a passenger.
4 Rotorcraft Flight Manual, markings, and placards, or as otherwise prescribed by the certificating authority of the country of registry." c. Section 61.31(a)(2), which states, "A person who acts as pilot in command of any of the following aircraft must hold a type rating for that aircraft:... Turbojet-powered airplanes." d. Section 119.S(g), which states, "No person may operate as a... commercial operator without... an appropriate certificate and operations specifications." e. Section 135.243(a)(l), which states, "No certificate holder may use a person, nor may any person serve, as pilot in command in passenger-carrying operations... of a turbojet airplane, having a passenger-seat configuration, excluding any crewmember seat, of 10 seats or more... unless that person holds...if required, an appropriate type rating for that airplane." f. Section 91. l 3(a), which states, "No person may operate an aircraft in a careless or reckless manner so as to endanger the life or property of another." g. Section 135.293(a) which states that "no certificate holder may use a pilot, nor may any person serve as a pilot unless, since the beginning of the 12 tti calendar month before that service, that pilot has passed a written or oral test, given by the Administrator or an authorized check pilot on that pilot's knowledge, on listed areas." h. Section 135.297(a) which states "No person may serve as a pilot in command of an aircraft under IFR if the pilot has not passed an instrument proficiency check since the beginning of the 6 1h calendar month before that service." and 1. Section l 35.299(a) which states "No person may serve as a pilot in command of a flight unless, since the beginning of the 12 calendar month before that service, that pilot has passed a flight check in one of the types of aircraft which that pilot is to fly. j. Section 135.343 which states that "no certificate holder may use a person, nor may any person serve, as a crewmember in operations under this part unless that crewmember has competed the appropriate initial or recurrent training phase of the training program appropriate to the type of operation in which the crewmember is to serve since the beginning of the 12 th calendar month before that service." Based on the foregoing allegations, uou have demonstrated that you presently lack the qualifications required of the holder of any airman pilot certificate, including Airline Transport Pilot Certificate No. and Flight Instructor Certificate No.. Based on the foregoing circumstances, the Administrator has determined that safety in air commerce or air transportation and the public interest require the revocation of your Airline
5 Transport Pilot Certificate, Flight Instructor Certificate, and all other airman pilot or flight instructor certificates you may hold. Furthermore, the Administrator finds that an emergency requiring immediate action exists; accordingly this order is effective immediately. NOW, THEREFORE, IT IS ORDERED, pursuant to the authority vested in the Administrator by 49 U.S.C. sections 44709 and 46105(c), that: 1. Effective immediately, your Airline Transport Pilot Certificate No. and Flight Instructor Certificate No. are hereby revoked; 2. Those certificate(s) be surrendered immediately by mail to the Regional Counsel of the Federal Aviation Administration, P.O. Box 92007, Los Angeles, CA 90009-2007, or by delivery at the Office of the Regional Counsel, Room 6007, 15000 Aviation Boulevard, Lawndale, CA 90261 ; and 3. No application for a new airman pilot or flight instructor certificate shall be accepted from you for a period of one year from the date of service of this Order. If you fail to surrender your certificates immediately, you will be subject to further legal enforcement action, including a civil penalty of up to $1,100.00 per day for each day you fail to surrender your certificates. DETERMINATION OF EMERGENCY Under 49 U.S.C. Section 46105(c), the Administrator has determined that an emergency exists related to safety in air commerce. This determination is based on on the nature and seriousness of the violations set forth in this order. Your conduct as alleged in this order demonstrates that you lack the required care, judgment, and responsibility to hold an airman pilot or flight instructor certificate. On multiple flights, you operated as the sole pilot of a Cessna Model S550, a large, multiengine, turbojet-powered airplane. The minimum crew for the Model S550 is two pilots, as reflected in the S550 type certificate. The FAA has issued specific regulations, 14 CFR 91.53l(a)(l) and (2), to require a second in command co-pilot to operate that airplane. You operated the S550 aircraft carrying paying passengers in the National Airspace System when you knew that you did not have the required pilot type rating and when you knew that another qualified pilot was required by type certification and regulation to serve as second-in-command in the aircraft. You also knew that neither you nor Aircraft Financial Services, Inc held any FAA-issued operating authority under 14 C.F.R. part 119 to conduct such flights. With respect to the passenger-carrying flight that you operated on or about January 30, 2015, you operated the aircraft as a sole pilot before you had demonstrated competency and before obtaining the required aircraft type rating. You were paid for operating this flight when you knew that neither you nor Aviation Financial Services, Inc. held any operating authority under 14 C.F.R. part 119 to conduct such a flight..
6 Moreover, you continued to operate a Model S550 aircraft even after you were expressly told that your sole pilot operation of the aircraft violated FAA regulations. As alleged in this order, approximately one month before the April flights, an FAA designated pilot examiner told you that single pilot operations in the aircraft were prohibited. After you received the required aircraft type rating for the S550 aircraft, an FAA designated pilot examiner, responding to your direct inquiry, informed you of both the requirements for additional pilot training and qualification before you could operate as a single pilot and the other aircraft specific requirements that may apply. Even after you received this information from the designated pilot examiner you chose to operate the April 2015 passenger-carrying flights when you knew you were not qualified to serve as a single pilot because your proficiency and competence to serve in that capacity had not been demonstrated with respect to meeting the demands of inflight emergencies, workload management, system failures, and communications as single pilot. You were also paid paid for those April flights when you knew that neither you nor Aviation Financial Services, Inc. held any operating authority under 14 C.F.R. part 119 to conduct such flights. Based on the foregoing circumstances, the Administrator is of the opinion that an emergency requiring immediate action exists with respect to safety in air commerce, and he has determined that safety in air commerce and the public interest require the immediate revocation of your Airline Transport Pilot Certificate No. and Flight Instructor Certificate, No. issued under 14 CFR part 61, and all other airman pilot or flight instructor certificates you may hold, on an emergency basis. Emergency action in this case is a safety measure that provides immediate protection to the public. Moreover, it is long standing FAA policy to declare an emergency under 49 U.S.C. section 46105(c) when, in circumstances such as those alleged in this order, the Administrator determines that the certificate holder lacks the qualifications to hold an airman certificate. In conclusion, the Administrator has determined that under the criteria of FAA Order 2150.3B, Chapter 6, pages 6-7 through 6-10; and Chapter 7, pages 7-1 through 7-3, your conduct as alleged in this order demonstrates that you presently lack the degree of care, judgment, and responsibility required of the holder of an airman pilot certificate. The Administrator therefore finds, in accordance with 49 U.S.C. 46105(c) and the guidance found in FAA Order 2150.3B, that the exercise of the privileges of your airman pilot certificates, while any proceedings related to the issuance of this Order are pending, is contrary to the interest of safety in air commerce.
9 CERTIFICATE OF SERVICE Case Number: 2015WP0500! 8 and 201 SWPI 90146 Document Title: Emergency Order of Revocation I hereby certify that the above-referenced document has been sent by Fedex - Overnight Mail, Certified Mail-Return Receipt Requested, and First Class Mail to the following: MR. ARNOLD GERALD LETO Irvine, CA Dated: JAN 1 2 2016 Jeff Kambe, egal Technician Enforcement Division National Enforcement Program Western Team Federal Aviation Administration Renton, Washington