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SE Minnesota Man Admits Ripping Off Travel Agents
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Minneapolis (KROC AM News) - A former southern Minnesota travel agency owner has admitted ripping off agents around the country in a scam involving nearly half a million dollars.
Pleading guilty in federal court in Minneapolis Wednesday was 45-year-old Matthew Schumacher.
Prosecutors say Schumacher convinced agents to use his businesses (Travel Troops, LLC, and Vacation Agent Nation, LLP, which were host travel agencies based in Waseca) to collect higher commissions from airlines, resorts and other travel-related businesses.
According to court documents, Schumacher defrauded at least 36 agents by misappropriating for his own personal use and benefit at least approximately $484,000 in commission payments owed to them from travel suppliers.
Prosecutors say Schumacher deposited $160,000 in a personal account, spent at least 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 car payments and StubHub ticket purchases.
He will be sentenced at a later date.
News update: Fire causes significant damage to Rochester home.
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