Air Charter Operator Head Pleads Guilty to PSP Fraud

The head of air charter operator Grande Aviation has pleaded guilty to theft of government funds and tax fraud in a case that stemmed from the U.S. Department of the Treasury’s Payroll Support Program (PSP) implemented during the Covid-19 pandemic, according to the Department of Transportation Office of the Inspector General (DOT OIG). Michael Grande, who was president of the Knoxville, Tennessee operator, pleaded guilty on May 28 in the U.S. District Court for the Eastern District of Tennessee.

Citing court records, the DOT OIG said Grande had defrauded the PSP, which was intended to provide assistance to air carriers during the pandemic. “He stole more than $400,000 intended for employee salaries and benefits,” the watchdog agency reported. “During the same period, Grande failed to pay $127,184 in trust fund taxes and other reemployment taxes to the Internal Revenue Service.”

Grande Aviation, which has ceased operations, appeared to operate a fleet of four Bombardier business jets: three Learjet 45XRs and a Challenger 300.

The DOT OIG said it conducted the investigation with the Federal Bureau of Investigation and the Internal Revenue Service’s criminal investigation unit.