Agent scammed Delta out of $1.75M in frequent flyer miles, prosecutors say

Agent scammed Delta out of $1.75M in frequent flyer miles, prosecutors say

The managing associate of a small, Chicago-based journey company is accused of scamming Delta out of practically $2 million value of frequent flyer miles.

a large air plane on a runway at an airport: Image: Delta Announces Quarterly Earnings And Reductions In Capacity Over Brexit© Joe Raedle
Image: Delta Announces Quarterly Earnings And Reductions In Capacity Over Brexit

Gennady Podolsky, a 43-year-old twin Ukrainian and American citizen, was arraigned on wire-fraud prices Friday, the U.S. Attorney’s Office for the Northern District of Georgia said in a statement.

He was indicted by a federal grand jury Wednesday on 12 counts of wire fraud.

Prosecutors say Podolsky used journey company prospects’ journeys to control the airline’s company reward program.

“Through his access, he allegedly took advantage of Delta Airlines corporate frequent flyer program, illegally reaping millions of SkyBonus points worth more than $1.75 million dollars,” Chris Hacker, FBI particular agent in cost of the Atlanta workplace, stated in a press release.

Under the airline’s SkyBonus program, companies can enroll and earn factors each time staff journey.

Podolsky is accused of scheming to have the journey and miles of Vega Travel prospects apply to the account of a fertility middle run by a relative beneath the guise that every one of the company prospects had been enterprise flyers beneath Delta’s SkyBonus program, prosecutors stated.

He then allegedly used these factors to get such perks as free air journey.

“The fraudulent accumulation of frequent flyer miles in the travel industry may seem like a victimless crime, however, large corporations stand to lose significant profits,” Hacker stated.

Prosecutors stated the scheme ran from at the very least March 2014 till April 2015. Podolsky is accused of defrauding Delta Air Lines out of greater than 42 million SkyBonus factors.

Emails to 2 attorneys listed in court docket paperwork as representing Podolsky weren’t instantly returned Friday night time.

Podolsky was Vega Travel’s managing associate and lead journey agent. Many of the corporate’s purchasers had been dwelling overseas and had been of Russian or European descent, prosecutors stated.

Delta is headquartered in Atlanta. An electronic mail contact for Vega Travel couldn’t instantly be discovered Friday night time. Its web site gave the impression to be down.

Podolsky surrendered to FBI brokers outdoors the federal courthouse in Atlanta on Thursday and was arrested, and he posted a $50,000 bond and was launched, in keeping with court docket data.

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