Two founders of defunct Oasis Hong Kong Airlines have been sued over claims that they orchestrated a deal to buy worthless shares in the company's operating division. Reverend Raymond Lee Cho-min and his wife, Priscilla Hwang Lee, allegedly gave a green light to a US$4.8 million plan without company approval or an independent valuation of the money-losing unit, according to a writ filed in the High Court. The couple, who could not be reached for comment last night, also failed to disclose that they had a personal stake in the deal, said the lawsuit filed by Oasis Mezzanine Funding, the airline's capital-raising division. 'Raymond Lee and Priscilla Lee failed to disclose or declare to OMF their conflicting interests' and had a duty not to 'engage in secret profiteering or self dealing', the writ said. Instead, Mr Lee and his wife 'misappropriated' US$4.8 million that was raised based on an 'unjustifiable and grossly overstated' US$350 million value for Oasis Hong Kong Airlines, the lawsuit claimed. The cash-starved unit ran the airline's day to day operations, the writ said. The couple allegedly ordered that Oasis Mezzanine Funding buy shares in Oasis Hong Kong Airlines, the writ said. But Oasis Hong Kong Airlines' value in September last year was 'not more than zero' and would now be 'negative', the writ said. Oasis, the world's first budget long-haul airline, grounded flights in April after operating for less than 18 months. About 700 staff lost their jobs and around 50,000 passengers were affected. Mr Lee had said the carrier went under because of higher-than-expected costs for jet fuel and planes. News reports earlier this year suggested that the airline fell apart after investors disagreed with Mr Lee about whether to pump more money into the airline. In May, a High Court judge ruled that Mr Lee and other Oasis founders had placed the company in voluntary liquidation to avoid paying a HK$170 million debt owed to the Bank of China. Meanwhile, the writ said that Mr Lee and his wife, a former executive director at Oasis, had ignored requests for a valuation report or evidence that the company approved the plan. 'The share purchase transaction was not properly authorised by OMF,' it said.