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Two Former Airline Industry Executives Convicted : A federal jury in the District of New Jersey found the former chief executive officer and the former vice president of a now-bankrupt public air charter operator guilty yesterday for their roles in a scheme to steal millions of dollars in passenger money for future travel from an escrow account, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Todd A. Damiani of the U.S. Department of Transportation Office of Inspector General’s New England Field Office.

Judy Tull, 73, and Kay Ellison, 58, both of Edenton, North Carolina, were each convicted of one count of conspiracy to commit wire fraud affecting financial institutions and to commit bank fraud, four substantive counts of wire fraud affecting financial institutions and three substantive counts of bank fraud following a seven-day trial.  Tull is the former CEO of Myrtle Beach Direct Air and Tours (Direct Air), which was headquartered in Myrtle Beach, South Carolina, with operations in Daniels, West Virginia, and Ellison is its former vice president and managing partner.  Sentencing has been scheduled for July 17, 2018 before U.S. District Judge Susan D. Wigenton of the District of New Jersey, who presided over the trial.

“Judy Tull and Kay Ellison stole passengers’ money to try and prop up their failing company,” said Acting Assistant Attorney General Cronan.  “Their brazen scheme created a multimillion dollar shortfall that left passengers stranded at airports, and banks and credit card companies scrambling to pick up the pieces.  “This important case is just the latest example of the pivotal role the Fraud Section plays in the Department of Justice’s ongoing efforts to combat white collar fraud.” Read more

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Two Former Airline Industry Executives Convicted : A federal jury in the District of New Jersey found the former chief executive officer and the former vice president of a now-bankrupt public air charter operator guilty yesterday for their roles in a scheme to steal millions of dollars in passenger money for future travel from an escrow account, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Todd A. Damiani of the U.S. Department of Transportation Office of Inspector General’s New England Field Office.