The character suffers several setbacks as a superhero, including being charged with tax evasion and fraud by the United States government, and arrested by the FBI for operating as a hero while charges were pending. This stipulation was waived after he was forced to reveal his secret identity. Nighthawk's cumulative wounds from battle eventually leave him paralyzed. Recovering to the point that he can move at night, Nighthawk continues to aid the Defenders, until resigning from the team. He is advised he is to be cleared of all charges if a predetermined amount is repaid to the government.