Hawaiian Airlines and William H. Spencer of Oakland faces up to five years in prison, a $250,000 fine and three year’s supervised release

William H. Spencer of Oakland faces up to five years in prison, a $250,000 fine and three year’s supervised release, according to a statement issued by the U.S. Attorney’s Office for the Southern District of New York in Manhattan.
Spencer, 74, along with Paul Boghosian, 49, of St. Louis, had placed a bid to reorganize Hawaiian Airlines when the airline filed for bankruptcy in 2003.
Spencer and Boghosian submitted sworn affidavits to federal bankruptcy court in Honolulu claiming that Spencer could provide, through a trust that he controlled, $300 million to fund the Hawaiian Investment Partners Group LLC’s reorganization plan.In February 2005, Spencer submitted a false affidavit as proof that he had $500 million in a bank in the Netherlands to fund the investment. Boghosian and Spencer then used the false affidavits to solicit people to support and invest in the plan.
To get the court’s approval of the plan, Spencer and Boghosian lied in depositions, at court proceedings and submitted phony documents, prosecutors said. The two apparently sought to make money by convincing legitimate investors to kick back money to them.Boghosian pleaded guilty to bankruptcy fraud on Oct. 29. Spencer and Boghosian are scheduled to appear for sentencing on Jan. 30 in federal court in New York.