A Minnesota travel advisor has pleaded guilty to defrauding at least three dozen fellow travel agents in a scam to line his own pockets.
Matthew Schumacher, 45, pleaded guilty in federal court this week after admitting he stole from agents whom he convinced to use his two host agencies in order to receive higher commissions on airline, hotel and cruise sales.
The scam involved nearly a half-million dollars, according to KROC News.
Prosecutors say Schumacher convinced agents to use his two agencies - Travel Troops, LLC and Vacation Agent Nation, LLP - to collect higher commissions from airlines, resorts and other travel-related businesses.
That never happened.
According to court documents, Schumacher defrauded at least 36 agents by misappropriating $484,000 funds for his own personal use and benefit, funds that the agents sent to him.
Prosecutors say Schumacher deposited $160,000 in a personal account, spent approximately $150,000 for his own travel expenses, withdrew $33,000 in cash and used the money for personal expenses that included restaurant bills, car and credit card payments and StubHub ticket purchases.
He will be sentenced at a later date.
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