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The other question is should we report the 135 operator that does not follow the rules or regs that it was certified on?
if he accepts money to transport persons or property from A to B, he's conducting an illegal charter.............
Holding out isn't a necessary component to perform the illegal charter. Accepting compensation or working for hire when conducting the flight from A to B is an illegal charter if Al doesn't hold at a minimum a single operator certificate.
The FAA is serious enough about it, they've opened an illegal charter hotline. From the AIN Online email newsletter...