The former president of the defunct budget carrier PEOPLExpress is facing prison after pleading guilty to fraud charges.
Michael Morisi, 59, admitted wire fraud and filing a false federal income tax return at a federal court hearing and could get more than 20 years.
The airline only lasted about three months from a base at Newport News-Williamsburg International Airport.
It managed to score a $5 million bank loan which was guaranteed by the airport operator, the Peninsula Airport Commission.
This was tied to former airport director Ken Spirito who was charged with offenses including money laundering.
Prosecutors accused Spirito of secretly providing public funds to help finance PeoplExpress.
Morisi allegedly also diverted funds when creditors came calling after the airline went out of business.
He gave false statements about the airline’s finances to creditors, which including the Peninsula Airport Commission.
PEOPLExpress was eventually kicked out of the airport for failing pay off airport fee arrears while still maintaining it would restart flights again after a long suspension of service.
