Old Sep 13, 19, 3:14 pm
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Originally Posted by Gig103 View Post
A man was indicted by federal prosecutors this week, accused of earning more than 42 million Delta frequent-flyer miles by committing fraud.
Source: https://www.businessinsider.com/delt...odolsky-2019-9

It goes on to say that he created a Skybonus account for a business he was not associated with to earn the miles.

The airline claims the miles are worth $1.75 million, which is beyond ludicrous. The man committed fraud and theft, but we all know the real value is closer to $500k.
It's worse than that. He had a travel agency and some relative owned a fertility clinic. He created the SkyBonus account for the fertility clinic and put their SkyBonus number on all the airline tickets he sold, despite the fact that his travel agency clients were not employees (and most of them probably never heard of the fertility clinic).

I wonder how he was caught. I also wonder why the relative wasn't arrested too.

Maybe the damage number is based on what it would have cost to purchase all the award tickets and other perks that were redeemed from the SkyBonus account, perhaps at last minute walk up fares (as if a fraudulent award ticket had been cancelled at the gate and the passenger had been forced to buy a ticket or be stranded).

BTW, do SkyBonus accounts earn regular SkyMiles (RDMs)? I thought earnings were measured in SkyBonus points based on hub/nonhub and length of flight purchased and flown.

ADDED: The Business Insider article first says SkyMiles (or DL FF miles) then later in the article says that it was forty-two million SkyBonus points.

Are there any standard estimates of the value of a SkyBonus point?

The guy was apparently a very high volume (I won't say good) travel agent, but he wants to call himself a "creative director" (like in the entertainment industry). I wonder whether he was advising his clients to buy DL tickets even if they were more expensive or less convenient.

If you google and try to go to their website, you see a Virtuoso "page not found." It's supposedly a luxury travel agency that's been in business for sixty years, so one wonders when this guy bought them. Locations are East Madison Street and East Wacker Drive in downtown Chicago.

Last edited by MSPeconomist; Sep 13, 19 at 4:29 pm
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