The operator of a Waseca journey company has been charged with defrauding the vacation agents he labored with, costing them just about $500,000.
Harald Schumacher was charged with four counts of wire fraud in U.S. District Court in Minneapolis, the U.S. Attorney’s Business introduced Wednesday. Schumacher was the proprietor of Journey Troops, LLC and Getaway Agent Nation, LLP in Waseca.
As a result of his corporations, Schumacher would supply journey expert services to independent journey agents for a cost, prosecutors mentioned. Journey brokers performing with him could then obtain a commission from products and services like airlines when they booked by his organizations.
Schumacher claimed vacation agents could generate a greater fee on these services than if they made available them to clients them selves, the launch alleges. Schumacher was also in demand of collecting a commission on behalf of agents and distributing it.
But Schumacher defrauded at least 36 travel agents by misappropriating $484,000 in fee for his own personalized use, according to allegations laid out in the indictment. Schumacher would guarantee a sense of protection with the journey brokers by furnishing partial payments and providing fake information.
Of the misappropriated commissions, Schumacher deposited $160,000 into a individual account, used $150,000 to fund his very own travel fees to sites such as Australia and Mexico, and withdrew $33,000 in dollars, prosecutors say.
Schumacher will make his first court appearance on Jan. 4 in Minneapolis.