Accused of fraud in connection with the former Epic Air, Fred Schrameck II of Bend pleaded guilty Monday to a single count of wire fraud, according to U.S. District Attorney Billy J. Williams’ office.
Schrameck, also known as Rick Schrameck, 73, solicited customers to buy and help build experimental aircraft, including the Epic LT, according to a press statement from the Williams’ office. He used three companies, Aircraft Investor Resources LLC, Epic Air LLC and Aircraft Completion Services LLC. Customers paid more than $1.4 million for the aircraft, manufactured in Bend, according to purchase statements.
Schrameck gave customers airframe purchase agreements and aircraft completion assistance agreements that misrepresented how the customers’ funds were being used, the District Attorney’s office said. Then Schrameck used the money for other projects, to complete Epic LT aircraft and to support his own “lavish” lifestyle, according to the release.
Schrameck faces a maximum sentence of 20 years in prison, a $250,000 fine and three years’ supervised release. He is scheduled to be sentenced Aug. 14. before U.S. District Court Judge Ann Aiken.
Epic Air was purchased and renamed Epic Aircraft in 2010 by a group of its former customers and a Chinese aircraft company, according to The Bulletin’s archives.