Former Myrtle Beach airline executive sentenced for stealing millions

A co-founder of a defunct Myrtle Beach charter airline will spend nearly eight years in prison for stealing millions of dollars from the business.

Kay Ellison, co-founder of Myrtle Beach Direct Air, was sentenced Wednesday in New Jersey to 94 months in prison and ordered to pay $19.6 million in restitution for her involvement, according to officials from the New Jersey U.S. Attorney’s office.

Ellison and CEO Judy Tull were found guilty in federal court in March of conspiracy, band fraud and wire fraud.

Myrtle Beach Direct Air was founded and headquartered in Myrtle Beach in 2006, court documents state. In March 2012, the company ceased flight operations and filed for bankruptcy.

Authorities alleged the duo defrauded a bank with false reports. When the company filed for bankruptcy, passengers bought tens of thousands of tickets for future travel. A bank account should have had more than $30 million, but an investigation found only $1 million in the account, according to their indictments.

Tull, who is also a co-founder, will be sentenced at a later date.

Ellison and Tull are both from Edenton, North Carolina.

Former Direct Air Chief Financial Officer Robert Keilman of New Jersey pleaded guilty and has not yet been sentenced.

This story was originally published November 29, 2018 at 8:20 AM.