A Virginia man who founded the defunct airline People Express has been indicted on fraud and tax evasion charges.
NEWPORT NEWS, Va. (AP) — A Virginia man who founded the defunct airline People Express has been indicted on fraud and tax evasion charges.
The Daily Press reports Michael D. Morisi was arrested Tuesday. He’s accused of defrauding creditors of nearly $448,000, using most of the money to pay himself and other airline executives months after the airline folded.
An indictment says the former executive director of Newport News-Williamsburg International Airport, Ken Spirito, arranged for public funds to guarantee that airline a $5 million credit line in July 2014.
The airline folded that September and stopped paying by the $4.5 million it owed TowneBank under the credit line. The airport was left to foot the bill, which it then paid with those public funds.
Spirito was arrested Monday and charged with violating federal finance laws.
Information from: Daily Press, http://www.dailypress.com/