Travel agent to pay Delta USD1 million restitution in loyalty fraud case

Saturday, 02 Nov, 2020 0

A former travel agency manager was handed a hefty fine for his role in scamming Delta Air Lines.

Gennady Podolsky, a dual Ukrainian and American citizen, must pay the airline $1 million in restitution by 27 January, 2021 as part of a plea deal.

He pleaded guilty to trafficking in computer passwords, which he was able to set up as part of his role as managing partner of agency Vega International Travel Services, Inc.

It is a small, full service travel agency based in Chicago.

Podolsky set up a bogus Sky Bonus account which was used to accrue loyalty points, and also gave the password details to another employee to unlawfully access Delta’s SkyBonus computer system.

Businesses enrolled in Sky Bonus can redeem points for flights, upgrades, and other perks.

It is thought he managed to rack up a massive 42 million points by booking clients’ travel.

"Podolsky violated trust when he trafficked in passwords associated with Delta Air Lines SkyBonus accounts, fraudulently accruing Delta SkyBonus points. Corrupt individuals who engage in fraudulent activity will be caught and prosecuted," said US Attorney Byung Pak.

Podolsky agreed to pay $1 million to Delta as part of the plea agreement ahead of his sentencing on 27 January 2021.

Written by Ray Montgomery, US Editor

TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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