December 16, 2024
Florida-based Verijet is facing multiple default judgments in lawsuits by former lessors and jet card customers.
Verijet is facing more judgments, garnishment orders, and legal activity as it seeks to rebuild.
The fast-growing, very light jet operator took off in 2020 and, by 2022, was the 30th-largest charter/fractional provider in the U.S.
By the end of 2023, it had moved to the 13th spot.
However, it is now down to a handful of Cirrus SF50s.
In December, Verijet launched two new jet cards with promises of building back its fleet.
One of the new jet cards promises to protect customer funds against default.
However, the company has been in flux over the past two years.
Founder and CEO Richard Kane briefly exited, only to return.
A proposed 2023 SPAC never took place.
An announced investment of $85 million in Nov. 2023 never took place.
It is now facing a flurry of new court orders and lawsuits.
READ: What happens to your jet card and private jet membership deposits?
The latest legal updates took place over the past few days and last month.
On Dec 23, 2024, Verijet Holding Company LLC received a 120-day extension in its lawsuit against former board member Mark Kahan.
This follows Vision Leasing 241, LLC’s final judgment against Verijet on Dec. 16, 2024, following a default judgment on Sept. 17, 2024.
The order notes Verijet and its legal representatives did not appear.
The judgment was first reported earlier this week by South Florida Business Journal.
Mark Kahan, the former Verijet board member, represented Vision Leasing 241.
Per the court documents:
The testimony and documentary evidence presented by plaintiff at trial established that pursuant to the Aircraft Lease (as supplemented and amended) between Plaintiff and Verijet, Inc., and as a result of Verijet’s default thereunder, plaintiff sustained damages in the nature of past due rent payments owed by Verijet, Inc. to Plaintiff through February 1, 2023 in the amount of $1,075,123.00, and future rent payments owed by Verijet, Inc. to Plaintiff (reduced to present value as of February 1, 2023) in the amount of $2,443,726.00. In addition, pursuant to the Special Tax Indemnity Rider included within the Lease (as supplemented and amended), plaintiff sustained damages (reduced to present value as of February 1, 2023) in the amount of $2,397,342.00. These three (3) categories of damages equaled a gross amount $5,916,161 as of February 1, 2023. Mr. Kaufman testified that he then offset that gross amount by $3,025,992 to account for the results of plaintiff’s mitigation efforts, which resulted in net rent and tax loss damages of $2,890,199. Mr. Kaufman testified further that prejudgment interest accruing on that net amount through trial (December 12, 2024) equaled $395,032.40, for a total of $3,285,231.40 in rent and tax loss damages.
Vision Leasing 241 put total damages at $3,449,212.74 through the trial date.
Per the court:
Final judgment is hereby entered in favor of Plaintiff, Vision Leasing 241, LLC, and against Defendant, Verijet, Inc., in the total sum of $3,449,212.74, which total sum shall bear interest at the rate of 9.50% per year pursuant to Florida Statutes Section 55.03(1), and for which sum let execution issue forthwith. Defendant Verijet, Inc. is not entitled to any relief by virtue of its affirmative defenses asserted in this action or by virtue of its counterclaims asserted in this action, and Verijet, Inc. shall take nothing with respect to such defenses and counterclaims and shall go hence without day.
Verijet has 45 days to complete a fact information sheet.
In a written statement to Private Jet Card Comparisons, Kane tells us, “As CEO of Verijet, I want to address the recent judgment entered against our company in the amount of $3.4 million, as reported under the title, ‘Aviation company loses multimillion-dollar judgment over airport lease.’ While we respect the court’s decision, we are currently reviewing all available legal options in response to this outcome. It is also important to note that the primary litigant, Mark Kahan, in the reported case is a defendant in a separate, ongoing legal case. Allegations in that case involve conduct that we allege result in damages exceeding the amount of the recent judgment. However, due to the active nature of this litigation, we cannot comment further about either matter at this time.”
In a separate case, Sam Crigman, a Verijet customer, filed for a default judgment on Nov. 27, 2024, after buying a 50-hour jet card for $147,812 on March 29, 2024.
His case, filed in the Eleventh Judicial Circuit of Miami-Dade County on July 25, 2024, alleged there were “numerous delays, canceled flights, and countless excuses for Verijet’s failure to provide the flight services” Crigman requested per his jet card agreement.
On July 17, 2024, the same court issued a default judgment in favor of Rubicon Founders LLC against Verijet for $268,778 for a separate case in Delaware.
At the end of November, it appears Rubicon Founders was still trying to collect.
The Florida court also issued orders to enforce a $20,254 judgment against Verijet by Innovative Service Technology Management Services, Inc., which was heard in Gwinnett County, Georgia.
On Jan. 8, 2025, the court issued a post-judgment writ of garnishment to a bank where the plaintiff believes Verijet has assets.
As of Dec. 7, 2024, Private Jet Finder, a charter broker, is also seeking a $20,336 garnishment after winning a judgment against Verijet.
It alleges that after paying for a flight that was never executed, Verijet didn’t provide a refund.
The most recent jet card customer lawsuit appears to have been filed Nov. 27, 2024.
Mark Mitchell is suing Verijet after purchasing a 100-hour Founders Card in September 2023.
Mitchell’s lawsuit alleges Verijet owes him over $100,000 after canceling flights and then ceasing communication after he sought a refund.
Lawsuits against the Cirrus Vision Jet SF50 operator have been ongoing over the past 18 months.
Jettly filed a lawsuit after not being reimbursed for flights Verijet canceled.
Verijet, however, ties the litany of lawsuits back to its litigation against former board member Kahan.
Asked to respond to the other lawsuits, Kane says, “The judgments against Verijet, Inc. arise in great part from the allegations detailed in the case Verijet vs. Mark Kahan. For more information, we encourage readers to review the public filings related to this case.”
That lawsuit can be found here: Verijet vs Mark Kahan
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