Previously, on August 13, 2007, the Commission filed a civil injunctive complaint alleging that Hollnagel and BCI, from 1999 through 2006, raised at least $82 million from approximately 120 investors through the fraudulent offer and sale of membership shares of Limited Liability Corporations (“LLCs”) controlled and managed by BCI. According to the complaint, Hollnagel, a resident of Chicago, Illinois, and BCI, headquartered in Chicago, Illinois, told investors that they would use investor funds to purchase specifically identified commercial aircraft for the LLCs and, in turn, lease the aircraft to commercial airlines. According to the complaint, investors were told they would receive part of the lease revenue from the particular aircraft, in the form of regular monthly payments, as their return.
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