This is a fascinating mystery. And I’m a little bit obsessed. It’s the story of a ghost plane with confirmed links to the American CIA, which mysteriously turned up in Australia. It’s also a story about a significant quantity of illegal drugs and cash seized by New South Wales police, as well as a daring and dangerous under the radar flight operation into Australia.
As I have said more than once, it really is the story that keeps on giving. So many intriguing twists and turns. Here is part five. But first, some background to put the story in context.
At the heart of this tale, is a plane, a US-registered Swearingen Merlin 3 with twin turbo props, which arrived illegally in Australia. How it managed to end up parked at Wollongong airport, a tiny regional hub south of Sydney is a complete mystery.
The Australian Federal Police and the New South Wales Middle Eastern Organised Crime Squad, raided the eight-seater private plane in 2014 while it was parked on the tarmac. The day of the raid was a real old fashioned cops and robbers type operation. The plane was surrounded by about 20 armed police, even though no one was on board.
A 43-year-old Wollongong pilot, Bernard Stevermuer, who is listed as the owner of the plane, was arrested and charged with being part of a criminal organisation and dealing with the proceeds of crime.
The News South Wales Police case, is that a major international crime syndicate was using the airport to import guns and drugs, for distribution throughout southwest Sydney.
The syndicate was allegedly operated by two men who, police claim, have links to a number of New South Wales outlaw motorcycle gangs. What their precise connection might be to Stevermuer has not been revealed.
Police clearly had Stevermuer under surveillance. They also claim to have documents showing that the syndicate commissioned Stevermuer to buy the plane in the United States for $US400,000, with money provided by a mortgage company in Sydney. But as you will discover, the purchase was anything but straightforward and is full of intrigue.
Police also allege the documents show Stevermuer, had access to large reserves of cash and was prepared to pay $A1.5 million to buy two aviation businesses based at the same airport where the plane was raided.
Several aviation sources have confirmed that Stevermuer was in negotiation to buy a flight training company, NSW Air and another company, Aerial Patrol shark-spotting.
Police allege these two aviation companies were to act as legitimate fronts in order to hide criminal activity. But when Stevermuer offered a $300,000 cash deposit, the seller became suspicious and the sale fell through. When Police arrested the Wollongong pilot, they discovered 36 kg of an illegal drug, which they now are refusing to name, but believed to be heroin, with a street value of $A9 million.
But then the story gets even more intriguing.
If you do a search of US Federal Aviation Administration ( FAA) records, you will discover, that an organisation called the Oregonian Aero Club, with an address listed in Wilmington, Delaware in the United States, owns the Swearingen Merlin 3 aircraft.
But the fact that this club has its registered office in Delaware, might be an extremely significant development. Delaware is one of the strangest American states in terms of corporate law, especially if you happen to be in the business of asset management.
Companies, incorporated in Delaware, enjoy similar freedoms and secrecy as do the clients of other highly secretive organisations, such as the Vatican Bank or financial institutions based in the Cayman Islands. Asset Management companies, which own aircraft and yachts, register them in Delaware as a way of minimising tax and personal liability and also because the assets are automatically registered as belonging to a trustee corporation rather than an individual, making it a great place to hide true ownership if that was your desire.
And according to FAA records, it turns out the person listed as a Director of the Oregonian Aero Club, which owns the mystery plane, is none other than Australian pilot Bernard Stevermuer, who was arrested by Australian police.
The papers list Stevermuer as the purchaser of the plane on behalf of Oregonian Aero Club.
Now you might ask, why would an Australian pilot and skydiving instructor, bother to travel across the world to buy a 42-year-old plane? There is nothing in the least exceptional about this model of aircraft apart from its age.
Even more unusual, Why would an Australian who doesn’t live in the United States, be listed as a Director of a fictitious American aviation club? None of this makes sense unless of course unless there was a darker purpose behind the deal.
The Oregonian Aero club has no headquarters, no web address, telephone numbers, aircraft (apart from this one 42 year old plane) or members. In fact none of the other aero clubs in the Oregon area have ever heard of it.
And, as it turns out, the plane at the centre of this intrigue, the Swearingen Merlin 3 twin turbo prop aircraft, could best be described as a ghost plane. By that I mean there is no record, whatsoever, of it ever arriving in Australia.
In fact, the last known official record concerning this aircraft reveals that it flew into the Philippines on May 5, 2014, after a two-month journey from the United States. But the Swearingen Merlin 3 was doing a lot of flying right up until the time it left for the Philippines. It flew for a couple of weeks from Punta Gorda in Florida via Missouri and Texas and then to California and finally Washington State.
Flight records indicate the plane left Seattle, Washington on the 30th of April 2014. It touched down at Cold Bay, Alaska, a village of 108 people, one shop, one hotel and an airport. The next day the aircraft flew to Honolulu and then the Marshall islands, a series of atolls in the Pacific Ocean. Next stop was the US airbase at Guam before arriving in the Philippines capital, Manila.
But what happened to the plane after that is a total mystery. It clearly entered Australia some way but what route it took and who was flying it is anyone’s guess. What is also apparent, whoever was flying this plane, took extraordinary steps to avoid detection. By that I mean entering Australia at one of its most remote and least habited geographic points, flying visually, without instruments, at low altitude, for long periods so it wouldn’t be detected by radar.
That would have taken the expertise and daring of an extremely skilled pilot.
The next official record of contact between this plane, registered NH224HR, and a control tower, was at Coffs Harbour in northern New South Wales on the 27th of June 2014. The plane radioed in that it was bound for Albion Park airport. And that’s where it’s been ever since, on the tarmac, until the police raid.
The next obvious question is who flew the plane illegally into Australia? At this point in time we don’t know the answer to that question. So let’s talk about what we do know. Sometimes fact can be way stranger than fiction.
The contract to ferry the Swearingen Merlin 3 from the United States to the Philippines was undertaken by an Australian company called Snow Goose International.
Snow Goose was engaged by the Oregonian Aero Club, which of course exists in name only. So it might be fair to assume that Snow Goose might know the principals behind Oregonian. If they do, they are not saying. In fact Snow Goose released a statement making the point that it was their job to ferry the plane to the Philippines, which they did, At all times the flights were planned and approved by the appropriate authorities. Communication was maintained at all times by High Frequency Radio in accordance with international requirements. Snow Goose had no knowledge of what happened to the plane after they ferried it to the Philippines nor does it have any knowledge of how it ended up illegally in Australia.
Snow Goose is a very interesting company. It’s Director and Chief Pilot is David Baddams, who was awarded an MBE, a Member Of The British Empire by the Queen of England. On the company website, he is listed as an ex-Navy fighter pilot with 40 years flying experience on many aircraft types including the Sea Harrier, BAE Hawk and the Douglas A4 Skyhawk. Since leaving the Navy in 1999, Baddams has remained closely involved in aviation as the business development manager of a military flying training school, a highly experienced flying instructor, an aircraft salesman and as the Chief Pilot and director of an airborne surveillance company. He has many years and many hours experience on numerous aircraft.
I am certainly not inferring or suggesting that David Baddams had anything whatsoever to do with ferrying the Swearingen from the Philippines to Australia. There is no evidence whatsoever to suggest or infer he was involved. Nor is there any evidence to suggest or infer that he was involved in anything illegal.
But there is also no denying that he had the flying expertise and the skill set to undertake the most perilous of flying journeys in a small plane, for example, from the United States to the Philippines. Snow Goose International regularly posted photographic updates of the Swearingen ferrying job to the Philippines on its company Facebook page. A photo posted by Snow Goose International on April 30 showed Baddams and a man seated beside him the cockpit of a plane, with the caption: “It’s Bernie!!! He is back!” The man sitting next to him is Bernie Stevermuer.
Another photo, posted on June 13, was captioned: “Here she comes! On the pan at Clark about to continue on her journey with the owner!” The caption is referring to the tarmac at Clark Air Force base in Manila. You might want to ask yourself the question: How is it possible that a private plane obtained the necessary permission to land and take off from a highly restricted US airforce base in the Phillipines?
On the same date, Baddams commented: “Here she comes to Australia! It’s N224HR, the one we brought across the Pacific!”
The next record of contact between this plane, registered NH224HR, and a control tower, was at Coffs Harbour in northern New South Wales on the 27th of June 2014. The plane radioed in that it was bound for Albion Park airport. And that’s where it’s been ever since, on the tarmac, until the police raid.
But would this mystery be solved if we were able to trace the full ownership of this plane from the time in rolled off the assembly line?
As I already established in a past blog post, the U.S. Forest Service was the first owner of the Swearingen Merlin 3 in the early 1970s.
The Forest Service has a track record of an activity known in aviation circles as sheep dipping planes on behalf of the CIA. You sheep dip a plane when you conceal or disguise its true owner. Sheep dipping explains how some Forest Service owned aircraft were discovered in exotic locations like Colombia and Mexico being used by drug cartels instead of fighting forest fires.
Are there any significant clues such as who might have owned the plane, before it was sold to the Oregonian Aero Club? Again a search of U.S. FAA records reveals the previous owner was a company called Sterling Strategic Consulting LLC based in Salem Oregon. Nothing unusual in that you might think except that Sterling Strategic Consulting LLC is owned by a dentist based in Colombia, Missouri on the other side of the United States. He bought the Swearingen Merlin 3 in 2011 and sold it to the Oregonian Aero Club a few months later. There is no suggestion or implication that any of these transactions were illegal. But they were definitely unusual and as per usual we end up with more questions than answers.
There is another interesting element to this story that invites further scrutiny. The fact that this plane began its mysterious odyssey across the world, from Charlotte County Airport at Punta Gorda in Florida, could be an indication of its true origin and purpose.
Punta Gorda, would have to be one of the more unusual locations in the United States and it’s all to do with its history. Punta Gorda could easily and humorously be re-named Spooksville. The founding fathers of Punta Gorda happen to be a pair of CIA spooks, Bud Cole and Al Johns, who turned a vast tidal flat into upmarket home sites complete with canals. As a CIA agent, Al Johns, was fairly gung-ho if you’ll pardon the pun. The CIA posted him to the East China Sea in the 1950s where his job was to supply pirates for junks used to attack Communist Chinese shipping. In fact, Punta Gorda seems to act as a magnet for CIA agents past and present. Porter Goss, former CIA Director during the Presidency of George W. Bush, was a long time resident of Punta Gorda and served as a local Mayor.
With that kind of history of CIA connectivity, it’s little wonder that Punta Gorda’s Charlotte County Airport has been home to some interesting characters and even more interesting allegations. For example at least one Congressional committee heard allegations that the airport was used to transport arms to the Contras in Nicaragua and to smuggle drugs, principally cocaine. Of course the allegations were never proven and no one was ever prosecuted or served jail time.
And there’s the case of the 23 helicopters that mysteriously disappeared from Charlotte County Airport. One of the helicopters was later discovered in Chile of all places. No one can explain how they managed to disappear, how they managed to leave the United States or who was responsible but the local Sheriff has suggested publicly that he has a pretty good idea even if he’s not saying.
Maybe it isn’t so surprising that a ghost plane that flew out of a mysterious place like Punta Gorda would end up thousands of miles away in Australia, linked to drugs and organised crime and with no record of it ever entering Australia in the first place.
So what might have happened to Bernie Stervermuer? He allegedly purchased the plane on behalf of a drug syndicate, and was also allegedly buying two companies so that the syndicate could launder dirty money. It turns out that Stervermuer bought not one but three planes on behalf of the syndicate between 2012 and 2014. NSW police say from 2012 to mid-2014, Stevermuer bought tplanes, in the United States, Malaysia and Cambodia, using money supplied to him.
Investigations by police reveal a “highly suspicious” paper trail linked to the purchase of at least two of the planes.
In the case of the US plane, which was infamously raided at Albion Park airport last July, $450,000 was paid through six bank transfers from five Chinese accounts, none of which had legitimate links to Stevermuer.
The US Department of Homeland Security told NSW investigating officers at least one of the accounts was used suspiciously in the past to transfer large amounts of money from Asia to the United States.
Two hundred thousand dollars was transferred to pay for the plane purchased in Malaysia, again using suspicious accounts, allegedly linked to drug operations.
Investigators couldn’t find any evidence to show who paid for the Cambodia plane or how it was paid.
When police raided Stevermuer’s house on the same day they raided the Merlin plane at Albion Park, they discovered $70,000 in cash, which, they say, was payment to Stevermuer for his involvement in transporting the Merlin to Australia.
After his arrest, Stevermuer decided to plead guilty to charges of dealing with property suspected of being the proceeds of crime and knowingly participating in a criminal group. But here’s where it gets even more interesting.
At the time, Stevemuer’s lawyer, Mark Savic, described his client as a “gentle, devoted and trustworthy family man” whose inherent naivety had been his undoing.
‘‘His love of flying caused him to be blind to what others might see were obvious signs to what was going on around him,’’ Mr Savic said, telling the Magistrate, hearing the case, that his client was extremely remorseful.
‘‘He’s not shied away from the charges, he has deep remorse and shame for being before the court today.
‘‘There was no intention on my client’s part to be involved in breaking the law. He didn’t go out to seek people in the underworld, he was approached by people with an agenda.’’
The Magistrate was clearly unimpressed with the submissions on behalf of Stevermuer, sentencing him to 19 months imprisonment.
However, Stevermuer appealed to the District Court of New South Wales and surprise, surprise won his appeal. His prison sentence was suspended and he walked away from everything a free man who will never spend a solitary second inside a jail cell.
Like I said, this story remains a fascinating and intriguing mystery.