p5 news apr3 1/4/09 21:43 Page 5
ttglive.com
news
Fraudster faces
£4m confiscation
Freudmann says
ABTA has welcomed the decision to confiscate
£4 million of assets from the convicted leader of
a gang of fraudsters, saying it should deter other
would-be criminals.
On Monday, Christakis
he has no regrets
Philippou, whose gang
was estimated to have
made up to £30 million
Lee Hayhurst.
and that the administration made sure all
in total, was ordered to FORMER Abta director Steven Freudmann has customers and staff were protected.
pay £4.2million or face said he was sorry a company he was associated He accepted he had entered a more risky
seven years behind bars. with failed leaving creditors unpaid – but insisted business arena when his Wales agency, Majestic
Abta head of finance he had no regrets. Travel, became part of his new publicly-listed
Mike Monk said that Freudmann was forced to resign at a board investment vehicle Alpha Prospects last year.
Abta should recoup “no meeting in Majorca last week after creditors of But he said: “Some chief executives of the
less than £500,000” his brother’s Unpackaged Holidays, including largest travel companies have failures under
after the 150 individual Resorthoppa and Spanish ground-handler Jumbo their belts that had huge impact on consumers.
claims from customers – amounting to £200,000 Tours, stormed a press conference. “Clearly, I’m saddened it ended this way, but I
– were paid. Creditor Paul Evans, chief executive of have no regrets.”
In total the gang of four has been ordered to Resorthoppa parent Low Cost Travel Group, Evans insisted his attacks on Freudmann were
pay £6.2 million following a confiscation trial at has threatened to challenge administrator not personal: “I quite like the guy, but you have
Southwark Crown Court. Shipleys over the deal which saw Unpackaged to be careful how you mix business and politics.”
The CAA and credit card companies are among sold to sister company The Travel Club. Resorthoppa director Patricia Rosello-Palmer
the other victims in line for payouts. Evans also threatened to raise concerns said Abta should do more to protect the interests
“It’s a significant recovery for all of us,” said with the Institute of Travel and Tourism, which of overseas suppliers.
Monk. “The judge was very fair and mindful of Freudmann chairs. TTG understands that the Freudmann’s brother Tony defended the
compensating the people who lost money. issue is not on the agenda of an ITT board Unpackaged administration. He said: “It followed
“It’s very important we send a message that meeting next week, but Freudmann said he the strict letter of the law and was handled by an
not only will people be prosecuted for their would be happy to talk to directors. experienced insolvency practitioner.”
crimes but they should not profit from them.” “There is a huge difference between Abta and Abta president Justin Fleming said he
Monk said Abta believed the level of criminal ITT, which has no regulatory role and is a regretted Freudmann’s decision to resign.
activity in the travel industry had gone down membership organisation with no bearing on the Freudmann said it was clear he did not have
since the well-publicised trial last year. employment of individual members,” he said. 100% support from the board.
Freudmann continued to protest that he had
no management responsibility for Unpackaged, ■ ‘Freudmann right to resign’: Letters, p26
In brief
■ Abta highlights recession-busting bonding
Abta has reminded members about an
alternative bonding scheme it operates that
might prove more cost-effective during the
downturn. The Travel Agents Bond
Replacement Scheme is restricted to firms with
an annual turnover of less than £50 million.
Companies must have belonged to Abta for at
least three years to be eligible.
■ One in four agents ‘breaking insurance rules’
A quarter of travel agents’ websites still do not
comply with FSA insurance regulations, three THOMSON BOLDLY GOES... Were you fooled? Wednesday morning saw TTG issue an
months after legislation came into force on e-alert bringing news of a Thomson space programme, a hovering hotel above Dubai and
January 1, according to a review by World First. new easyJet destination Frilo Palo. If you’re still trying to book a space flight or searching
The insurance specialist offers agents help to for Frilo Palo on the map, we should point out the alert was sent on April 1. Having got
become compliant. the joke, 500 readers entered our Dubai competition to win a £50 M&S voucher.
03.04.2009 05
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