In a multimillion-dollar scheme, former CEO Judy Tull, 70, and managing partner Kay Ellison, 55, of a now-defunct public charter flight company, Southern Air & Tours, doing business as Myrtle Beach Direct Air & Tours (Direct Air), were indicted for wire fraud and bank fraud.
The indictment alleges that Tull and Ellison made or caused others to make “ghost” reservations for fictitious passengers in Direct Air’s reservation system and submitted fraudulent documents to the bank, requesting payment for certain amounts on two occasions and concealing the criminal activity.
According to the indictment, in approximately March 2012, Direct Air ceased operations, leaving tens of thousands of passengers with purchased tickets for future travel, resulting in a $30 million shortfall in the escrow account.
The U.S. Department of Transportation’s regulations required charter operators to financially protect passengers either by posting a security or by keeping passenger payments for future flights in an escrow account with an approved bank. Direct Air maintained such an account at a bank in New Jersey.
Tull and Ellison were charged with one count of conspiracy to commit wire fraud and bank fraud, seven counts of wire fraud, and seven counts of bank fraud. An indictment is merely a formal accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Department of Transportation’s Office of Inspector General investigated the case. Trial Attorney L. Rush Atkinson and Senior Litigation Counsel Carol L. Sipperly of the Criminal Division’s Fraud Section, and Deputy Chief Scott McBride and Assistant U.S. Attorney Andrew Kogan of the District of New Jersey are prosecuting the case.
Defendant Information: Judy Tull, Kay Ellison – Real full names or legal entity name: Southern Air & Tours, doing business as Myrtle Beach Direct Air & Tours (Direct Air)
Exact criminal charges: Conspiracy to commit wire fraud and bank fraud, wire fraud, and bank fraud
City and state: New Jersey
Exact date: (no specific date given)
Sentence or outcome: (no sentence given)
Dollar amounts: $30 million
Tull and Ellison’s current status is that they have been indicted and are presumed innocent until proven guilty in a court of law.
Related Federal Cases
- Sato Satka, Bank Fraud, New Jersey 2024 · Illinois
- Michael Esposito, Wire Fraud, New Jersey 2013 · Pennsylvania
- Gomidas Garabed Hartounian, Wire Fraud and Tax Evasion, New Jersey 2014 · Florida
- Ricardo Reid, Mail and Wire Fraud Conspiracy, New Jersey 2024 · Virginia
- Vinod Dadlani, Conspiracy to Commit Bank Fraud, New Jersey 2024 · Pennsylvania
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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