We realized that we had all been duped

Prof Baimbridge has the corporate law analysis of Air America's implosion. See the WSJ/AP article here. There were apparently sales of assets while debt was being contracted, and now default looms. That sets up credit fraud. Investors were defrauded as well, who had been told that the amount already raised was closer to $30 million, and now it appears to be $6 million.