The travel agency that’s been in business for nearly 100 years but has lost more than $1 billion to fraud
The travel agent that’s had a long history of fraud is losing more than half its business to fraudulent charges and a wave of new charges, a lawsuit alleges.
The complaint filed Monday in federal court in Cincinnati says the company, Travel Agency International Inc., had a history of misleading travelers about its services and offering inflated rates.
It’s the latest in a string of bad news for the company.
The lawsuit says Travel Agency has lost nearly $1.8 billion since 2004 and expects to lose more than a billion by 2019.
The company’s website lists losses of more than US$300 million in the past three years.
The agency said in a statement that it had been working to fix its business model and that it was focused on restoring trust in its services.
The statement said it had invested in a “robust compliance program” and “implemented extensive training” on how to avoid and detect fraud.
The company also said it has a zero-tolerance policy for fraud and will continue to improve the way it operates.
Travel Agency has had trouble with fraud in the last year, said Richard DeLuca, an attorney with the consumer advocacy group Public Citizen, which filed the lawsuit.
Travel agency was in bankruptcy last year.
It has also had some legal issues with its attorneys, DeLucas said.
The travel agency is a national chain that operates in about 300 cities and towns across the United States.
The lawsuit says it had more than 50,000 employees.
It says Travel Agents International has had problems with fraud before.
In November, Travel Agents Inc. was bought by a company owned by an investor who bought a controlling interest in the company in 2013.
The investment group, which also owns the Los Angeles-based JetBlue Airways, is seeking to sell its interest in Travel Agents to investors.