Zetta Jet’s management team has said that the FBI is investigating its allegations of fraud against Geoffrey Cassidy, a co-founder and shareholder.
In a bankruptcy court filing, Michael Maher, CEO of Zetta Jet, said: “The FBI has interviewed the Debtors’ officers and shareholders about these matters, and the Debtors’ current management is cooperating fully in the belief that this will advance recovery for creditors.”
Zetta Jet alleges that Cassidy used the company’s funds to buy and renovate two large motor yachts, buy property in France and Singapore, and pay for three cars worth between $2 million and $3 million. It alleges that he used its aircraft for more than 300 hours of personal flights. Zetta Jet also alleges that Cassidy received kickbacks when buying aircraft.
Cassidy denies and disputes all of these claims.
Zetta Jet says that it is also employing its own forensic investigators and may use Chapter 11 to reject contracts signed by Cassidy.