US regulators have given Family Airlines until next month to remove its chief executive due to his involvement in a fraudulent stock offering in 1993.

DOT explains that Barry Michaels participated in the offering of $5 million in registered stock in the predecessor to the carrier, also dubbed Family Airlines.

Regulators explain the conviction of Michaels on misrepresentation charges made in a private stock offering is enough to keep the company from winning DOT clearance to launch operations.

“The Department would not be able to recommend a favourable fitness determination of Family Airlines as long as Mr. Michaels continues to be involved with the company,” says DOT.

“If Mr. Michaels is not sufficiently distanced from Family Airlines (by 13 June), the Department will issue a show-cause order proposing to find the applicant is not fit.”

The Las Vegas-based carrier has proposed <A

This entry was posted on Friday, May 16th, 2008 at 2:00 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.