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oe IP 87-22720$ FREDERICK P. PRO, President, Air Cargo Express, _ Ynoc., Miami, Plorida. — GABRIEL ROBERT CAGGIANO, Attorney and Corporate Officer, World Aircraft Exchange, Boston, Massachusetts. RAYMOND W. BASZNER, Vice President, World Aircraft Exchange, Boston, Massachusetts. D. BEECHER SMITH and CHARLES H. DAVIS, Attorneys for ELVIS PRESLEY, Memphis, Tennessee. WINFIELD, PRO and CAGGIANO had promoted the idea of a C sale-lease program involving the sub-leasing of the Jetstar and including an up-grading of the plane. The transaction would be the sale of PRESLEY's Jetstar to WWP Leasing Group. WP in turn would borrow enough money from the Chemical Bank of New York to cover both the paying off of the present indebtedness on the aircraft, over $600,000, and also upgrading this aircraft in order to qualify it for Federal Aviation Regulation (FAR) 121 Maintenance Program. This up-grading had an estimated cost of $350,000. Upon completion of the up-grading, the plane allegedly would be valued on the open market at approximately $950,000. : With WWP purchasing this plane, the contractual agreement would ( -continue in that PRESLEY would then lease the plane back for 84 months at a monthly rental of $16,755 and he fn tura would sub-lease the plane for $17,755 per month for 84 months to Air Cargo Express (ACE). This way PRESLEY would profit by $1,000 @ month and, at the end of the seven year period, be had the ° right to buy back the plane for §1.00. Sowever, the agreement would allow ACE to continue another three years payiag a ced rental of $10,000 per month. ae rst te BASZNER, who was at the meeting held on June 34, 1976, was an agent for World Aircraft Exchange, Iac., and was ours to _ ° be responsible for supervising the up-gradings aad modifications - of the aircraft to qualify for the FAR 121 Maintenance Progran. : When the contract was signed on June 35, 2876, VERNON Bree PRESLEY, acting for ELVIS PRESLEY, paid two checks to WWP eee both in the amount of $16,755 representing the first and ; ree: eighty-fourth monthly rental payments. PRO wrote three checks “* to ELVIS PRESLEY, two in the amount of $17,755 each representing wes the first and eighty-fourth monthly payments, and the third eheck in the amount of $40,000 representing a premium for the sub-lease. All three checks of PRO, on the Plagship, Pirst Wational Bank of Coral Gables, Coral Gables, Florida, were \ 4 \ ". wey as Se e ‘5 q