WASHINGTON -- California is getting tough with travel firms that
violate the state's seller of travel law.
Over the past several weeks, through a coordinated effort that
involved the California attorney general's office and federal and
local law enforcement agencies, criminal charges have been filed or
judgments have been rendered against at least 10 companies that
allegedly have violated the seller of travel law.
Some of the cases involved allegations of serious fraud, such as
bilking several hundred thousand dollars from clients who purchased
vacations that never materialized, and an air ticket-buying scheme
that cost consumers more Calif. gets tough on fraudulent firms than
$1 million.
Although California's seller of travel law has been on the books
since 1995, the state has not aggressively prosecuted companies
that allegedly ripped off consumers. Instead, the emphasis has been
on reimbursing consumer loss from a restitution fund that is
supported by registration fees paid by travel companies.
So why the sudden burst of enforcement activity?
Antoine Georges, co-owner of Happy Traveler in San Diego,
explained that it stems from new procedures that govern the way
consumers file claims.
Georges, who serves as president of the Travel Consumer
Restitution Corp. (TCRC), a body created by the travel seller law
to provide refunds to consumers hurt by California travel
companies, said it used to be that consumers didn't need supporting
documentation in order to file for reimbursements.
"All consumers had to do was send us information that they
bought a ticket from some company that went out of business,"
Georges said. "They didn't even need to have a receipt."
Georges since has established new procedures for consumers
filing a claim.
"Now, I make sure that they have a police report," he said. "So
when you have 100 or 200 people flooding the police department with
complaints, all of a sudden you are going to get [local
prosecutors] interested. And that's what's happening."
Among the recent cases were:
• Santa Barbara-based David Anderson Safari pleaded guilty to
one count of grand theft and two counts of violations to the
Business & Professions Code. The owner, who faces up to a
five-year prison term, has to pay $193,000 in restitution.
• Cyber International Travel, a company that operated in
northern California, was cited for a $1.6 million "airline
ticket-buying scheme." The owner is being held without bail until
the trial date.
• The owner of Global Travel and Court Street Travel in San
Bernardino pleaded guilty to stealing passenger funds and has been
sentenced to three years in prison.
• Excellent Travel in Los Angeles was accused of bilking $30,000
from consumers.
Meanwhile, Georges said the TCRC is "pulling out all the stops"
to locate the people behind I Do Honeymoons of Costa Mesa, Imperial
Beach-based Sundance Tours and Travel, and Duke Travel of La
Palma.
Each firm is accused of ripping off clients before the owners
quickly shut down the companies and disappeared.