Laguna Hills Firm to Pay Fine, End Ads to Settle Suit

The operator of a Laguna Hills company that offered to train “outside” travel agents has agreed to pay $44,000 in restitution and penalties and to halt allegedly misleading advertising and unlawful business practices.

J. Lawrence Robinson, who operated the now bankrupt Travel Partners Management, said Thursday that he settled the civil lawsuit filed by the Orange County district attorney’s office to avoid costly litigation.

Travel Partners was one of a growing number of companies that sold thousands of consumers nationwide on the idea of becoming independent, at-home travel agents who can make commissions and enjoy discounted travel benefits like the professionals.

Offering rock-bottom agent rates on everything from theme parks to air fares and hotels, Travel Partners collected nearly $3,000 each from about 2,000 customers with promises to train them as travel agents and provide them with travel and vacation discounts. The customers also were to receive commissions on travel they booked for themselves as well as travel for others.

Prosecutors accused Robinson and his company of misleading customers into believing, among other things, that they received the lowest prices, that they could get refunds up to a year after joining and that they could get upgraded travel tickets that only agents received.

In addition, the suit alleged, Robinson and Travel Partners failed to get a state license or a waiver for operating training schools, and failed to register with the state attorney general’s office as a seller of travel.

The lawsuit by the agency’s consumer protection unit was filed Tuesday along with the prearranged settlement. Prosecutors issued a prepared statement Thursday about the case but weren’t available for comment.

Robinson, who didn’t admit any wrongdoing in settling the civil case, will pay $1,000 a month for 39 months as restitution and then pay $5,000 in costs.

He said Thursday that he should have no problem adhering to the remaining terms because he doesn’t plan to go back into the same business--”certainly not in California.” Besides, he said, “I’m going on Social Security. I’ll be 62 next week.”

His lawyer, Max De Liema in Laguna Hills, acknowledged only that there were “technical” violations of licensing laws, saying that it was questionable whether Robinson’s training sessions could be considered schools.

“About 90% of his customers are very satisfied,” de Liema said. He asserted that those who complained were people who “didn’t follow through on suggestions by Travel Partners” to improve their individual operations.

Robinson said he is helping a Bankruptcy Court trustee wrap up the liquidation of Travel Partners this month. All of his customers, he said, have been referred to Travel Easy, a travel agency in Phoenix, to obtain the rest of their benefits and to renew memberships.

A Travel Easy employee said his company services “a number” of Travel Partners members and provides them with the lowest fares it can find. Through a subsidiary, it sends employees to Orange County every three months to train Travel Partners members to be independent travel agents.