Pinched Travel Advisor Case May Offer Lessons

Things are tough all over. When they’re not raiding the homes of ex-government officials, U.S. Department of Justice investigators are busting travel advisors who aren’t quite what they claim to be.

This week Diana M. Hopkins of Wimauma, Florida became the latest individual to face the scales of justice. Hopkins was sentenced on August 8 to three years in federal prison for wire fraud, access device fraud and money laundering in connection with her activities as a travel advisor.

According to a Department of Justice (DOJ) statement, Hopkins’ HTS Vacations used Facebook and a website to solicit clients to purchase cruises. The voyages were advertised at sharply discounted prices, according to the Feds.

Hopkins also “made additional misrepresentations in offering clients further discounts and/or additional amenities to induce them to make payments for [cruises] and travel arrangements in advance of clients’ sail dates.”

Operating in characteristic Ponzi fashion, Hopkins then used some clients’ credit card information to pay for other clients’ bookings, obviously without their knowledge or consent.

In the case of some would-be vacationers, Hopkins never made bookings, instead spening the deposits on “personal and family expenses, groceries, restaurants, retail shopping, jewelry, a 2019 Dodge Ram 1500” and ironically, “cruises for family members,” said DOJ.

Hopkins personally received at least $91,495. As part of her sentence, she forfeited $115,995. Hopkins has been ordered to pay $432,938 in restitution.

I’d like to make a couple of points here. The first is that if a deal sounds too good to be true, it usually is. That’s an old expression, but I have yet to see it disproven. Some agents, particuly reputable, experienced retailers, can offer cruise discounts others can’t. But savings that significantly undercut what’s available elsewhere in the market should be eyed warily.

That doesn’t mean the consumers victimized by Ms. Hopkins in any way deserved to be ripped off. But it does pay to work with travel advisors recommended by trusted sources.

My second point is more personal: I don’t think I’ll ever fully understand folks like the now-convicted felon Diana Hopkins.

In executing her ploy it seems Ms. Hopkins did a significant amount of labor (albeit to further her shameful schemes). Among other steps, she input numerous clients’ credit card data into cruise reservation portals. She altered names associated with some clients’ cards to match the names on bookings to which she applied payments.

Hopkins also reached out to encourage clients to submit payments via platforms including PayPal, then used some of the funds to make “Ponzi-style” payments on other clients’ reservations without their knowledge or consent.

That’s a lot of work! This all had to take some time to conceive and execute, and I can’t help but wonder what may have resulted had Ms. Hopkins put the same effort and determination into operating a legitimate travel advisory business.

I suppose she shares the same immature desire for instant wealth that seems to drive other criminals. Unfortunately, there’s a long history of travel advisors who turned out to be little more than grifters who primary aim was to abscond with client money.

Over the years their modus operandi has been reliably similar: collect clients’ vacation deposits, pay for some but not all of the bookings, and cover some due payments with new client funds. Invariably, a significant portion of the deposit money doesn’t make it to travel suppliers.

It’s true, becoming a professional travel advisor rarely provides a quick path to affluence. However few occupations offer the singular perks travel advisors enjoy, including the ability to roam the world as part of their livelihood.

Experienced advisors can also boast of innumerable encounters with new people, places and cultures, occasions that provide knowledge and insight that in most instances can’t be purchased.

Money isn’t everything.