 On 19 July 1994, Jeffrey Chodorow and Scot Spencer were indicted for bankruptcy fraud, fraudulently concealing the bankrupt airline's property from creditors, defrauding the USDOT during the airline's certification, and obstructing a pending proceeding of the agency.In a plea bargain, the U.S. government dropped the bankruptcy fraud charges against Chodorow, in return for his guilty plea to the USDOT charges.Chodorow was sentenced to four months in prison and four years' supervised release and was ordered to pay a $40,000 fine; additionally, he agreed to pay the airline's bankruptcy trustees $1.25 million in restitution over five years.