Kenneth R. Spirito, Falsifying Airport Funds, Virginia 2020

A stunning case of corruption and deceit has unfolded in the heart of Virginia, where former Newport News Airport Director Kenneth R. Spirito has been convicted of multiple charges related to the intentional misapplication of funds, money laundering, false declaration, perjury, and obstruction of justice.

According to court records and evidence presented at trial, Spirito, 47, was the Executive Director of the Newport News/Williamsburg International Airport from 2009-2017. In 2014, he led and organized an effort for a start-up airline, People Express Airlines, Inc. (PEX), to obtain a $5 million loan from TowneBank that was guaranteed by the Peninsula Airport Commission (PAC), operators of the airport.

Spirito intentionally misapplied various state and federally regulated funds to provide the cash collateral for the TowneBank loan. When PEX suspended operations in September 2014, the PAC had to make payment on the loan default. Spirito subsequently provided false information to the Federal Aviation Administration regarding the source of the loan payments.

Furthermore, in 2019, Spirito provided false testimony in a civil deposition regarding his role in the decision to do the loan guarantee and the funds he used as collateral. This brazen display of dishonesty has left many wondering how such a scheme could have gone undetected for so long.

The case against Spirito is a stark reminder of the importance of transparency and accountability in government and public institutions. His conviction serves as a beacon of hope for those seeking justice in the face of corruption.

Spirito faces maximum penalties ranging from ten to twenty years in prison across each count of conviction when sentenced on June 10, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

The defendant's downfall is a testament to the tireless efforts of law enforcement agencies, including the IRS-Criminal Investigation and the Virginia State Police, who worked together to bring Spirito to justice. Their dedication to upholding the law and protecting the public trust is a shining example of public service.

A copy of this press release is located on the website of the U.S. Attorney's Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-43.

Source: https://www.justice.gov/usao-edva/pr/former-newport-news-airport-director-convicted-multiple-charges