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Agents convicted of paying ‘Peter to pay Paul’
Two Salinas, California-based travel agents pled guilty to defrauding hundreds of customers almost $400,000.
Edward Pio and his business partner, Kay Burtness, admitted to grand theft, failing to deposit money into a trust account and failure to return money for services.
Most of their customers were elderly, but a high school band also lost the money it raised for an 11-day tour of the People’s Republic of China.
The pair of agents was sentenced to probation, a year in county jail or home confinement. They are also being required to return the money.
They said the money went to pay refunds owed other clients.
Their attorneys blamed the problem on a sluggish economy.
“They’re not criminals. They were running a business that fell behind and they robbed Peter to pay Paul,” said Larry Biegal, the pair’s attorney.
Report by David Wilkening
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