MANHATTAN (CN) – The pastor of the House of Truth in Oakland, Calif., was convicted of a multimillion-dollar bankruptcy fraud. William H. Spencer and a cohort lied to the judge presiding over the Hawaiian Airlines Chapter 11 proceedings, and claimed to have $500 million in financing from a bank, to try to induce others to invest in their scheme.
Spencer, 77, and his co-conspirator, Paul Boghosian, 54, of St. Louis, face up to 5 years in prison and $250,000 fines.
Spencer told a Hawaiian bankruptcy court that he controlled a trust that could supply $300 million for one of two competing airline reorganization plans, a lie he later upped to $500 million. Spencer and Boghosian also submitted false affidavits and documents to try to lure investors, the U.S. Attorney’s Office said. Both men will be sentenced on Jan. 30.