November 5, 2020
Federal Aviation Administration Debars Former Virginia Airport Commission Executive Director
On November 5, 2020, the Federal Aviation Administration (FAA) debarred former Peninsula Airport Commission Executive Director Kenneth Spirito from participating in Federal procurement and nonprocurement transactions for a period of 3 years. The debarment is retroactive from March 10, 2020, the date of Spirito’s jury conviction in Federal criminal proceedings.
Spirito led an effort to obtain a $5 million loan from TowneBank for a start-up airline, People Express Airlines, Inc. (PEX). Spirito intentionally misapplied various State and federally regulated funds to provide the cash collateral for the TowneBank loan. Spirito was convicted of misapplication of property from an organization receiving Federal funds, engaging in monetary transactions in property derived from specified unlawful activity, falsification of records in Federal investigations, conversion of property from an organization receiving Federal funds, perjury, and obstruction of justice.
DOT-OIG conducted this investigation with the Internal Revenue Service Criminal Investigation Division and the Virginia State Police.
Note: Exclusion actions (suspensions and debarments) are frequently for a specific period of time, and GSA’s System for Award Management should be consulted to find out whether a company is currently excluded.