Airlines Bilked in ‘Secret Flights’ Scam
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REDWOOD CITY, Calif. — In a scheme compared to the sale of the Brooklyn Bridge, a man allegedly has bilked several major airlines out of more than $1 million by promising to set up secret travel for nonexistent government agents.
Investigators said Donald Hoirup’s phony Bay Area business convinced Continental, American, Northwest and other airlines that he would secure millions of dollars worth of clandestine government travel, in return for a 3% to 4% cut that could be exchanged for airplane flights.
Hoirup reportedly garnered more than $1 million in free airline passes, but failed to provide any proof that he had arranged any “low profile” travelers.
The airlines could not ask too many questions about the scam because the alleged flights involved national security. Authorities say they became suspicious when none of the government travel could be confirmed.
Criminal charges are about to be filed against Hoirup, San Mateo County Det. Richard Glennon said. Hoirup has denied wrongdoing.
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