Colorado issues cease and desist order against Prime Travel Protection

Colorado has issued a cease and desist order (PDF) again Prime Travel Protection, the bankrupt travel insurance company based in Arvada, Colo.

The move caps an lengthy investigation by the state and comes on the heels of a similar action by Florida.

The order, signed by Colorado’s insurance commissioner, Marcy Morrison, is likely to put more pressure on the travel agents who have sold Prime Travel Protection policies and other insurance-like products offered by companies owned by Prime Travel Protection’s president, Jerry Watson. It is also likely to give some momentum to Florida investigators, who are said to be pursuing a criminal investigation related to Prime Travel Protection.

Here’s a summary of the order:

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This is a developing story. Look for an update soon.

  • Mr Bad Example

    Chalk one up for the customer.

    To all of the legal eagles out there.

    Doesn’t this now create a clearer path for those consumers who seek redress against the various travel agents who actually sold the product as insurance?

  • SirWired

    Quick question… what good is a Cease and Desist against a company that no longer exists? Shouldn’t it have issued the order when they still had money?

  • Peter

    Colorado issues a cease and desists against Respondent Watson.

    This headline was received with all the enthusiasm of a damp squib.

    But it is extraordinary, and let me tell you why.

    Several other C&Ds or official state decrees have been issued against Trip Assured, Vacation Protection and Traveler Protection. They were short curt messages saying stop doing that or we will slap your wrists. Watson did not heed that simple warning. Findings of facts were limited to 5 or 10. Colorado has 75, SENENTY FIVE, findings of facts.

    The Colorado report is a whole different kettle of fish – night and day.

    Forewarned by previous state authorities several investigators took a microscopic look at Watson and his client travel agencies. It is detailed, professional and insightful, but it has all but been ignored.

    The Colorado team traced back the history and co conspiracy of the Watson, Poucher, Johnson fraudulent schemes. Everything is associated in a beautifully crafted document which will lead other states to use it as a template.

    As professional as Colorado was, Florida now have the benefit of the CO model and, I believe, will be more professional still. Not against Watson but against the willingness of several Florida travel agents bent upon circumventing the clearly stated Florida law.

    Florida has four times the number of investigators as Colorado and they are coordinating a multi departmental task force to prevent travelers from being sold fraudulent travel cancelation insurance policies.

    Neither Colorado nor Florida has taken the word of our highly active group but, instead, have conducted their own independent research and have reached their own lawful conclusions.

    The Colorado C&D is the greatest advancement in this case since our departed colleague Paul Donahue sat down to complains in August 2008 with Chris McGuire, Florida department of Insurance.

  • Jim Gahr

    Good insight, Peter. Sometimes in investigations, it takes time before all the facts come out and are linked together. The previous C & D’s issued against Trip Assured, Vacation Protection Services and Traveler Protection Services were just the beginning of what I feel will be one of the largest consumer investigations in the state of Florida. No one should condone Watson’s actions, but now it is obvious that despite what the travel agencies may state, Watson did not act alone. Someone had to sell his bogus products and there are several very high volume and visible travel agencies in Florida that assisted Watson in defrauding thousands of Floridians and others across the country over and over again. Now that more information has been brought forth by Colorado, the travel agencies will no longer be able to use the excuse, “I didn’t know the plans were illegal”. As a poster previously noted, the trade press reported extensively on these illegal plans long before PTP. How could a travel agency not been aware? I’m hoping the Florida authorities focus on these repeat offending travel agencies. I’m sure your group will make sure!

  • Arthur

    The blogs have gone quiet but much has happened. There are four blogs, which is confusing, so may I suggest this one should be used currently.

    I am going to update everybody in three parts:

    PART 1
    What the intended Florida cease and desist means to travel agents. The message from the Colorado emergency C&D

    PART 2
    The new Florida criminal investigation.
    Who has been paid? What offers are out there?

    PART 3
    Startling new documentary evidence against travel agents from 2003.

    PART 4
    Just who are the mysterious “group.”

    Part one will be Monday.

  • Arthur

    OK, I can’t count but would you accept four Parts for the above post. I will promise you some remarkable information.

  • Jim Gahr

    Arthur, let us not forget the cruise lines. Our group firmly believes they are as culpable as the travel agencies and therefore have elected to name the month of May – “Princess Cruise Lines Unfair to Senior Citizens Month”. Princess has literally ignored the pleas of one of our senior victims. What is so disturbing is the fact that Princess pays a commission to travel agents like the ones Florida has issued intents to Cease and Desist -Legendary Journeys, Best Price Cruises and Palm Coast Travel/Smartcruiser.com. Despite their financial relationship with these travel agencies Princess has obviously turned their back on the fact that these agencies have sold illegal trip protection plans to complement the sale of their cruises. The major cruise lines are under a microscope today by the federal government as a result of safety at sea issues. Consequently, as part of the campaign, “Princess Cruise Lines Unfair to Senior Citizens Month” you are urged to contact your Congressional representative and explain to him or her what Princess has done – appoints and supports travel agencies who repeatedly sell illegal trip protection plans to the cruising public and condones such behavior by ignoring the pleas of victimized seniors who are unable to receive proper reimbursement for their claims. In addition to contacting your Congressional representative, please send an e-mail to Bob Sharak, Executive Director of CLIA (Cruise Lines International Association) at bsharak@cruising.org. Mr. Sharak heads the trade association that most major cruise lines belong and needs to be aware of the behavior of CLIA’s members. You may want to ask Mr. Sharak if he could help promote, “Princess Cruise Lines Unfair to Senior Citizens Month” by posting a press release on the CLIA website.

    Jim Gahr
    Crab Orchard, TN

  • Peter

    ANCHORS AWAY PAY $9425.70 CASH TO BRENDA LARSEN

    In a startling about face Mr. Edward Mass CEO of Anchors Away, Clearwater, Florida sent a check for full cash reimbursement to Brenda. No restrictions.
    Well done Edward Mass.

    Brenda booked a cruise along with cancelation insurance with Travel Protection Services via Anchors Away in August 2007.
    She has fought a long and brilliant campaign which is a model and inspiration to all victims.

    The “book” as Brenda calls it all 200 pages is now on my desk, shows an unrelenting polite argument against Mr. Watson and Mr. Mass. She expertly solicits help from the group, the cruise line, medical professionals and several state insurance departments.
    Mr. Mass was also gentlemanly and polite in his correspondence – no threats or law suits.

    Five weeks ago Mr. Mass was declining responsibility on the grounds that it was an insurance matter.

    Four weeks ago Mr. Mass mailed two certificates to Brenda, both $4282.35 for future cruises spread over two years.

    Brenda declined.

    Then on April 3 Edward Mass sent a short but kind note saying he had decided to pay accompanied by a check for cruise air and cost of the TPS premium.

    Personally I don’t know the reason for Mr. Mass’s change of heart but, in this instance, it is a magnanimous gesture greatly appreciated.

    Congratulations Edward Mass and Anchors Away.

    The check has arrived in time for Brenda and Hank to book their 50th anniversary cruise.

  • Arthur

    Part 1 of 4 …………………UPDATE

    Florida’s intent to issue a cease and desist was the first coordinated attempt to bring to heel three travel agents after eight months of detailed investigations. Up to eleven officers in four departments are involved.
    Have they done? I don’t think so.
    The enormous cost to tax payers would have been wasted if it ended now.
    A Florida spokesperson, in a conversation with Diane Lade, Sun-Sentinel said the investigation was ongoing and more travel agents would be included.
    Since the C&D was issued on March 24, 2009 the case has expanded from civil to criminal and a lead Detective Investigator has been allocated responsibility. The powers of the criminal department are greater and include search and arrest authority.
    Travel agents have been quick to focus on one aspect of the C&D – the travel offices did not have a licensed person selling insurance. I don’t care if they did or didn’t, it is a minor issue.
    Selling unlicensed insurance from an unauthorized entity cannot be overlooked.
    Florida is still going full steam ahead (pun intended), receiving and gathering information and gives no sign of letting up.

    The Colorado C&D must be studied in parallel with the Florida C&D because although issued later it is the precursor to Florida’s case.
    It is a stinging blow for travel agents because of the detailed and well researched history of the fraud since 2001. The C&D navigates (oh dear!) us from Johnson’s Trip Assured through Watson’s VTP, TPS Plan Protection, PTP, Universal Assurance and the unyielding relationship with travel agents.
    The word FRAUDULENT is unequivocally used by Colorado but not by Florida. But if Watson’s web of deceit including stealing legitimate company names as underwriters, repeatedly closing companies followed by purchasing their assets and liabilities (most likely for $1.00) then travel agents are complicit in that fraud. They were the conduit to the public who relied upon the professional recommendation of their agent. Some agents are FOUR time offenders.
    Florida has a stack of documents the size of an elephant which will connect travel agents and booking engines indefensibly to Johnson, Poucher and Watson for six years. The documents have not yet been published by the state but the group has them.

    Since 2004 Jerry and Christine Watson have been the center of the solar system, the sun. The masterminds of the fraud. Between the sun and the planets there is a communication space station – a booking engine such as Revelex.
    Then there is Mercury, Venus, Earth and Mars, the planets. Smartcruiser, Best Price Cruises, Legendary journeys. Sometimes the planets communicate with the Sun via the space station sometimes they shoot messages directly to the Sun.

    In their way the C&D’s of Colorado and Florida indicates a direction towards this model. When they finish it will be clearer than a Florida spring morning.

    The travel agents underestimated “the group” thinking them an incompetent bunch of seniors; however, their biggest blunder was to underrate the highly professional investigators of Florida and Colorado. The agents have treated the regulators as fools and incompetents and, to their own detriment, will pay a stiff penalty because investigators are the antithesis of that description.

  • Jim Gahr

    An open letter to Messrs. Ferguson (Legendary Journeys); Russo (Best Price Cruises) and Smolinski (Palm Coast Travel/Smartcruiser.com).

    Instead of forking over money to your lawyers to protect your sorry asses and make excuses for your illegal behavior, pay up now…cash only please. A precedent has been set by Ed Mass of Anchors Away and you can bet the authorities looking into this matter have been made aware of this fact. So, instead of hiding behind your lawyers like a little child hiding behind Momma’s apron, do what’s right and pay these claims…cash only please.

    P.S. Mr. Ferguson – can you afford to reimburse every client you sold one of your 15,000 illegal VPS policies, too? At a conservative average of just $200 for each policy, that would be $3 million and that doesn’t count the illegal garbage you sold through Trip Assured, Traveler Protection Services and Prime Travel Protection. Don’t think this group won’t pay for a full page ad in the Miami Herald inviting every purchaser of these illegal insurance plans to file suit against you in small claims court.

    Jim Gahr
    Crab Orchard, TN

  • Ben99

    Well Jim Gahr you have an aptitude for driving a point home like a lance in a Joust.

    I hope the gentlemen you mention are listening.

  • Elliot L. Logan

    You have to be kidding, Ben99. These individuals are not gentlemen. A gentleman doesn’t threaten a senior citizen; a gentleman doesn’t retain a lawyer to threaten the host of a blog; a gentleman doesn’t repeatedly sell illegal products and then make excuses that he didn’t know they were illegal. These individuals are whining snivelers that will hopefully be brought to justice by the Florida authorities. If the Florida authorities can prove criminal intent, I am confident the Dept. of Justice will bring federal charges against these “gentlemen.”

    Elliot L. Logan
    Peach Orchard, AR

  • Kathy

    Touche’ Mr. Logan and let’s not forget that the real owner of at least one of these companies is a so called “lady”. And I have a sneaky suspision that she doesn’t have a clue of what her husband has done to her… legally speaking.

  • Arthur

    Part 2 of 4……………….Update

    The ultimate offer would cover all invoiced items, interest and compensation for time and materials. We are yet to see such an offer.

    The best by far is from Edward Mass President of Anchors Away who after offering 2 future travel vouchers made a rapid turnaround and paid Brenda Larsen the full cruise amount, air fare and the TPS insurance premium.

    One lady has been reimbursed in full by a combination of PTP, the cruise line and Best Price Cruises – Ron and Sandra Russo.

    Two previous bloggers reported payment after disputes with Watson.

    Al Ferguson of Legendary Journeys has made highly unsatisfactory offers to several clients including Fran and Dick who were interviewed by WFTV and three members of the group who shall remain unnamed.
    Basically, the offer came as three different vouchers for future travel cruises to be taken, one third each in 2009-2011, 2009-2012, 2009-2013.
    Mr. Ferguson insists on the following terms:
    1. Client agrees to purchase Travel Insurance offered by Legendary Journeys.
    2. Client agrees to release Legendary Journeys of all liability concerning closure of referenced companies above.
    3. Client agrees to not pursue further chargebacks or compensation from LJ on the trip outlined above (including legal action).
    4. Client understands only one certificate can be used for any one trip and is not combinable with any other promos or discounts.
    5. Client agrees to withdraw any open complaints against Legendary Journeys concerning this situation.

    Everyone I know has declined.

    Mr. Lee Smolinski of Smartcruiser made Peter Lay a peculiar offer requesting a submission of the insurance claim to an entirely different, but legitimate insurance company, Access America. This offer whilst appreciated as an attempt to reconcile the dilemma moves it backward to an insurance claim. As Peter rightly points out reimbursement must be made by Mr. Smolinski because he failed to purchase a licensed insurance product when he clearly and repeatedly said he would.

    Various offers were made by Mr. Watson to review claims over 5 years but these are without substance or merit.

    Several other agents involved have not made offers.

    Victims should continue to pursue their travel agents for a full cash payment without restrictions.

    Florida Criminal Investigation by Al Calhoun

    Group members are communicating with a new criminal investigation set up by the Dept of Financial Services, Fraud Division. A detective has been appointed.

    When insurance fraud is suspected in Florida a criminal investigation can be ordered through the Division of Insurance Fraud which is under the Department of Financial Services. Among the many investigations undertaken by the Division of Insurance Fraud is fraud related to insurance premiums and unauthorized insurance entities. It has already been established that three travel agencies have been involved in dealing with an unauthorized entity in the sale of bogus insurance premiums. The Division of Insurance Fraud will now be ascertaining if any criminal activity was conducted by the travel agents who sold these policies. More than likely they will be looking at travel agencies who have repeatedly sold illegal trip protection. The Division of Insurance Fraud can make arrests and criminally charge those they find in violation of the law. Criminal investigations take a great deal of resources and in these tough economic times it is unlikely that such an investigation would have been undertaken had there been any doubts that criminal activity occurred. The consequences for the travel agents could be severe and may include felony charges.

  • Peter

    Kathy – that wouldn’t be Ms Sandra Russo of BPC would it?

  • Kathy

    Peter,
    my mother always told me “If you don’t have anything nice to say, don’t say anything at all”. This is me saying nothing.

  • Peter

    I urge every victim of this despicable scam perpetrated by these travel agents to contact the offices of Florida Congressmen, Bill Posey (321-639-8595) and Gus Billirakis (727-773-2871). Even if you are not a constituent, please call and urge these dedicated public servants to see that the travel agencies are prosecuted under the Pete Orr Act. The Pete Orr Insurance Anti-Fraud Act (Florida Senate Bill 1694) was authored by these two gentlemen in 2003. The Act makes it a felony for anyone who transacts unlicensed insurance. The felony can range from first to third degree. Please let the individual you speak to in Mr. Posey’s and Mr. Billirakis’ office know that a criminal investigation into the actions of these travel agents is being conducted under the direction of Col. Vicki Cutcliffe of the Florida DFS.

  • arthur

    Part 3 of 4………………Update

    The group has over 1000 letters, e-mails, faxes, invoices and insurance contracts from victims but I don’t want to discuss these, only collective or newly acquired documents.

    During an investigation of Trip Assured in 2005 attorneys obtained discoveries regarding Trip Assureds’ clients. I have seen these discoveries and had them sent to Florida’s Bureau of Investigation.

    Trip Assured had 646 travel agents as clients nationwide.
    Information included travel agents name, their office telephone numbers, the name of the Trip Assured sales person and the percentage of fee or commission.

    Here are some examples:

    Best Price Cruises 772-337-2100 Jerry Watson 32%
    Legendary Journeys 941-953-7988 Jerry Watson 40%
    Palm Coast Travel 561-393-7377 MB 40/49% Revelex

    Document two came from the records of Jerry Watson’s Vacation Protection Services and is remarkable in its detail.
    19,000 travelers from Florida alone were scammed during the three years VPS was in business.
    Top selling travel agents are ranked and named. It is extraordinarily damning but factual.

    Extract:
    Top sellers, by Agent:

    Number Agent Agency
    ——- ———————- ——————————–
    4761 Jacque Azevedo Legendary Journeys
    745 Maribeth N. Voges Legendary Journeys
    599 Jeff Hoffmaster Legendary Journeys
    535 Marco Vaccino Legendary Journeys
    438 Elyse Zebede Cruise Brothers
    399 Adrienne Cruise Options

    Top sellers, by Agency:

    Number Agency
    ——— ——————————–
    15327 Legendary Journeys
    5122 Cruise Brothers
    3669 Anchors Away Cruises and Tours
    1565 High Performance Travel
    Using numbers supplied by travel agents and extracted from the documents above Florida travelers (especially seniors) alone are top of the USA ranking list with 60,000 defrauded tax payers losing an estimated $18,000,000.
    EIGHTEEN MILLION SCAMMED FROM FLORIDIANS.

    Documents group 3 are contracts, invoices and itineraries showing a history of Best Price Cruises dealing with one client, Jim, and Trip Assured VPS, TPS and PTP.
    Absolute irrefutable proof of Ron and Sandra Russo’s dealing with Jerry Watson since 2003. Remember they claim ignorance of a fraudulent policy yet they are four time offenders.

    Jim, Best Price Cruises and Trip Assured
    Hawaii 10/06/2004 #DC5G6J Judie Galway
    Insurance # 4Y3099 $336.00 Trip Assured

    Jim, Best Price Cruises and Vacation Protection Services
    Panama 03/13/2005 # 4231195 Evelyn Steen
    Insurance # 9957 Vacation Protection Services.

    Jim, Best Price Cruises and Travel Protection Services
    Alaska 05/08/2006 # 3802817
    Insurance # 3757T Traveler Protection Services.

    Jim, Best Price Cruises and Prime Travel Protection
    Cruise February 2008
    Cancelled medical reason – declined.

    Just for good measure.
    Stewart and Stewart v Best Price Cruises Case 562006SC002890AXXXSC 11/14/2006
    Settled by Best Price Cruises.

  • Kathy

    okay Arthur…I’ll beg! (The suspence is killing me!) Where is part 4 of 4??????

  • Arthur

    Sorry Kathy please wait a little longer.

    PETITION TO FLORIDA ATTORNEY GENERAL AND COLONEL VICKI CUTCLIFFE< DIVISION OF INSURANCE FRAUD

    Colonel Vicki L. Cutcliffe, Director
    Department of Financial Services
    Division of Insurance Fraud
    200 East Gaines Street
    Tallahassee, FL 32399-0324

    Dear Colonel Cutcliffe

    We the undersigned petition the Florida Department of Financial Services – Mr. Bill McCollum, Attorney General, State of Florida – Mr. Alex Sink, Chief Financial Officer, State of Florida to bring charges against Smartcruiser (Palm Coast Travel), Legendary Journeys, Best Price Cruises (Vacation Superstore Network), Anchors Away, JB Cruises, Cruise Value Center and any other business that bought unlicensed insurance/”travel protection” from an unauthorized entity Prime Travel Protection – Universal Assurance – Vacation Protection Services – Travel Protection Services and Trip Assured in the state of Florida and furnished that product to their customers.

    We respect and appreciate the investigation by your staff leading to an intent to issue a cease and desist. This is a beginning, now is the time to move to the next level and hold all the participating travel agents professionally and fiscally accountable – as allowed in Florida statutes 624.401. .

    We, as victims, brought this fraudulent activity to your notice in July 2008 and during the period July 2008 to January 26, 2009 (Insurance Group closure) thousands more Floridians had money stolen from them through these illegal operations.

    We have conducted research, interviews and worked for thousands of hours over the last ten months and assert clearly and unequivocally we are not satisfied with travel agents receiving a slap on the wrist and being told to desist.

    Knowing that they will essentially not be held accountable for the thousands of dollars they have swindled from their clients who dealt with them in good faith, these con men will reopen clones of their bogus scheme under a new names.

    It is also quite probable that this has been a ponzi scheme where a few initial claims were paid from the early premiums and then the company was abandoned once the weight of claims became too great to support the lifestyle of Mr. Watson and the payments to the participating co-conspirator cruise company operators….Then, the next incarnation of the same business would be started, once again, with a new name, etc.

    As a deterrent to our tenacious complaints Mr. Lee Smolinski and Ronald Russo have threatening suits against the undersigned and against members of the media.

    We outline below some of the extraordinary contributions made by us of documents affidavits and witnesses.

    • In August 2008 Paul Donahue met with Chris McGuire, told the whole story and handed over dozens of documents. Paul, sadly, died without recompense.

    • All the undersigned submitted official complaints along with dozens of documents.

    • Mr Jim Mahlmann presented four contracts and invoices from LJ irrefutably selling him insurance. One each from TA 2004, VPS 2005, TPS 2006, and PTP 2007. LJ has been a four time offender over six years selling an unlicensed product.

    • We discovered Michael Blankenship a gentleman who designed and managed the website for VPS. He sent numerous pages of data referring to Watson’s client travel agents. The performance was broken down to number of sales, best performing agents and agencies. 19,000 Floridians were scammed by VPS and their partner agents in three years.

    • We have provided court documents showing previous suits against Best Price Cruises (BPC) for the same illegal sale of insurance and interviewed the plaintiffs to ascertain settlement. Internet reproductions were sent proving Smartcruisers sales and association with Mr. Watson going back five years.

    • We have presented to you authentic memos from Ron Russo (BPC) to his staff instructing them to sell the insurance of VPS and TPS together with the sales targets and compensation. We ask that you speak to the witnesses above.

    • We have informed investigators that Mr. Watson visited BPC in October/November 2008 to present his PTP product. Mr Watson told everyone attending the presentation that the product was not insurance, but BPC continued to represent it as such.

    • We presented documentation proving Mr Lee Smolinski of Smartcruiser represented that he had purchased insurance for his clients when in fact he had kept the money for ten months without purchasing anything.

    • We provided documentation showing all of the above mentioned travel agents were clients of Trip Assured, the initiator of the illegal scheme.

    • We have produduced solid links for your investigators to connect Travelex, Smolinski, Poucher, Johnson, Pamela Gore, Pamela Wilson, Brenda Nolan, Christine and Jerry Watson, Sandra and Ronald Russo, Al Ferguson and Ed Mass.

    • We gave investigators names of individuals responsible for information technology in Smartcruiser (Debbie) and Best Price Cruises John Diaz pleading with the investigators to seize or copy the databases from offices and homes before they could be destroyed.

    We assert that crimes have been committed and that the amount of money involved makes these acts felonies which should be pursued by your office — either directly or by engaging the District Attorneys in each area involved, and/or the State Attorney General. The victims need to be made whole and the perpetrators need to pay claims they have fraudulently denied. In addition, these guilty parties need to be sentenced to fines, damages and possible prison terms. We want you to make an example of these repeat offenders so the message will be clear that these types of scams will not be tolerated in Florida.

    Knowing full well that you have the power to penalize the perpetrators of these malicious crimes aimed at senior citizens. We ask that you do your duty and enforce the law by vigorously prosecuting these guilty parties to the fullest extent of the law.

    Joe Moseley Best Price Cruises/Traveler Protection Services $6,300
    Stewart Trebbe Best Price Cruises/Prime Travel Protection $4800
    Rob Goldberg Best Price Cruises/Traveler Protection Services + PTP $3,500
    Ruth Krackover Best Price Cruises/Prime Travel Protection $40,000
    James Mahlmann Best Price Cruises/Prime Travel Protection $4,500
    Craig Stieben Best Price Cruises/Prime Travel Protection $2600
    Peter Lay Smartcruiser/Prime Travel Protection $4800
    Billie K Legendary Journeys/Traveler Protection Services $1500
    Ellen Cruz Legendary Journeys/PrimeTravel Protection $8,900
    Kay Schroll Legendary Journeys/Traveler Protection Services $6800
    Lorraine Donahue Legendary Journeys/Prime Travel Protection $5800
    Fran & Dick Brady Legendary Journeys/Prime Travel Protection $6000
    Harold Marshak Legendary Journeys/Prime Travel Protection $5000
    Art Endress Legendary Journeys/Traveler Protection Services $2,400
    Karen Heidinger Cruise Value Center/Prime Travel Protection $2,500
    Brenda Larsen Anchors Away/Traveler Protection Services $9,800
    Barry Resnick Mother scammed by Trip Assured. Barry is a supported, advisor and researcher.

    Copy: Diane Lade, Sun-Sentinel
    Nadine, Travel Weekly
    Chris Elliott, Elliott Blog
    Todd Ulrick, WFTV

  • Kathy

    Arthur, no apology needed, patience is a virtue. (besides, you always make it worth the wait.)

    Reading your recent post brings to mind a favorite saying of mine….
    Pigs get fat…Hogs get Slaughtered!
    (looks like it’s time for a trip to the Butcher)

  • Arthur

    Correction: Travelex should read REVELEX in the petition letter above. I apologize to Travelex who are an excellent company and can be relied upon to provide real insurance for travelers. Arthur

  • Peter

    Congratulations to Fran and Dick Paterson who received a full cash payment from Legendary Journeys. Kudos to Al Ferguson who decided recently to reimburse Fran and Dick.

    The couple from the Villages in Florida conducted an exemplary and tenacious campaign and were the first to release the story on TV Channel 9. (WFTV with Todd Ulrich).

    I do know that Mr. Ferguson has paid out a few claims but most are with vouchers. Cash is what we want.

    Four of the inner circle of activists have been settled in full, two of them all cash.

  • Peter

    Factual is going to put his lawyers hat on over the weekend and sum up:

    The case against Ronald & Sandra Russo of BPC.
    The case against Lee Smolinski of Smartcruiser
    The case against Al Ferguson Legendary Journeys

  • PETER

    On March 9, 2009 Chris Elliott interviewed Al Ferguson regarding his role in the PTP/Travel Agents insurance fraud. On the surface Mr. Ferguson seemed to answer questions openly but, in fact, he side stepped with the adroitness of a bullfighter, gave erroneous numbers and told less than the truth.

    Mr. Ferguson said he became aware of a problem with Prime Protection Services/Travelers Protection Services in September 2008 and stopped using Mr. Watson’s companies.
    The Legendary Journeys website and the Revelex booking engine website continued to display the unlicensed illegal product.
    Clients such as Ronnie Dishler, Judith Leitner, Linda Ferral, Kay Schroll, Paul Donahue, Harold Marsak, Billie S, Ken Michaud, and Jack Graziano were not notified of any difficulty.
    Even after the demise of PTP/TPS/UA in January 09 Legendary Journeys did not notify all clients.

    Mr. Ferguson claimed he had made satisfactory arrangements with all his clients – to HIS satisfaction but not the clients.

    Fran Brady, Ellen Cruz and many others turned down Mr. Fergusons deplorable offer.

    Ronnie Dishler booked a cruise in May 08; September 2008 passed without notification of an obstruction; January 26, 2009 (PTP dissolution) came and went – no communication.
    Ronnie actually took the cruise and did not have to claim; but, if she had there was no company to claim against. No other insurance or certificates had been issued as Mr. Ferguson stated.
    The whole affair was brushed under the carpet with 40% of the premium in Mr. Fergusons pocket.
    Ronnie demanded the return of her premium because not only was the product illegal, it didn’t exist. An LJ manager rudely told her it was not LJ’s responsibility. The premium $381 – how mean is that?

    Mr. Ferguson attempts to lay the blame for illegal insurance on Revelex, the booking engine, because there it was, right before the agents, eyes so easy to click. How would poor simple minded travel agents know where the insurance would end up?

    Well, Revelex, Boca Raton, Florida has been dealing with Mr. Ferguson, Mr. Watson and Mr. Poucher since 2004/5 when Trip Assured dissolved leaving victims high and dry.
    Revelex received commissions (or reduced fees) from Trip Assured, Vacation Protection Services, Travelers Protection Services and Prime Protection Services.
    Legendary Journeys moved their “insurance” account every time the master fraud, Mr. Watson, set up a new company to perpetrate the scam.
    Each company dissolved in turn or had cease and desists ordered against them exactly like the PTP disaster of January 26, 2009.

    Legendary Journeys, as everyone knows now, was the golden goose for Mr. Watsons Vacation Protection Services with 15,327 sold to unsuspecting victims. There were two VPS’s and both were dissolved after C&D’s were issued. Mr. Ferguson didn’t know?
    Mr. Watson, a former felon, was now involved in three company dissolutions but Mr. Ferguson didn’t catch on? Two years later and two more of Mr. Watson’s companies imploded.
    After at least five years of friendship and business dealings “EURIKA!” Mr. Ferguson senses a problem?

    Mr. Ferguson can’t discuss details of the fraudulent behavior because he claims he is suing that arrogant unsuspecting thief Mr. Watson and his companies.
    THERE IS NO SUIT FILED IN FLORIDA, COLORADO OR ILLINOIS REGADING THE WATSON ENTERPRISES.

    Mr. Ferguson makes light of the small number of clients affected.

    Our group has 13 very serious victims. Each victim knows of one or two more friends or relations who were victimized.
    But, here is the stunner – every client who paid a premium for the unlicensed product was scammed and 40% of every premium claim or not, went into Legendary Journeys business machine.

    Legendary Journeys staff and Al Ferguson have deceived, been dishonest, have broken at least two Florida laws and they have treated clients and the Florida regulators as dim-witted naive people.
    Ferguson blames Watson and Revelex, Watson blames clients and travel agents, Revelex silent as a ghost removed the much heralded Prime Travel Protection in late 2008.

  • James

    Peter – Watson is not a “former” felon – he is a felon. As far as Ferguson – he should be put in jail, but it appears the Florida authorities have better things to do. Put pressure on your local elected officials to put these scumbags away.

  • Benn99

    Thanks for tying things together Peter.
    You mention briefly Paul Donahue. Although a couple in the group made written complaints to The Florida Department of Insurance in May 2008, Paul was the first to have a face to face with Chris McGuire, Florida Bureau of Investigation, and really got the point across.
    I believe that was the conception of the current investigation by Florida.
    Paul passed on this year without seeing the fruits of his work accomplished. But his spirit lives on.

    Al Ferguson of Legendary Journeys and Jerry Watson ignored Paul’s pleas for help and reimbursement and it is to their never-ending shame that they did so because Paul is now one of the groups heroes who drive them on against the perpetrators of a heinous crime against seniors.

  • JoeM29

    In my opinion it is a disgrace that the State of Florida is allowing these travel agents to escape any penalty. The Investigators claim that it is just a technical violation, and this in spite of the statutes defining the sale of insurance in unlicensed companies as a felony in the State of Florida. After reading the statutes it is very clear what these travel agents are guilty of, and a more skeptical person might think that money has changed hands to allow this to go unpunished.

  • William

    Didn’t something similar happen in the Trip Assured case Joe? Who was that?

  • Brenda Larsen

    Although my Florida travel agency paid my claim, I continue to be very disappointed with Colorado authorities who, during the process, told me that Mr. Watson made every effort to resolve the issue. It is so obvious that this statement is false. Simply read the mail. All of this happened before the C & D order was issued.. Mr. Watson caused many problems for me that lasted for more than a year. The State of Colorado allowed him to get away with this. Colorado authorities did nothing to assist me. Because of all of the grief Mr. Watson caused me and many others, I hope that he will be punished.

  • Arthur

    And so do I Brenda.
    We still don’t know the full Watson story. In recent submissions to the group a new member told of an evacuation debacle with Watson’s Worldwide Assistance provider. I have long thought why would such a crook even bother to pay an emergency provider?
    The answer is – he did not.

    That is another fact that Palm Coast Travel/Smartcruise; legendary Journeys and Best Price Cruises should have known.

  • Peter

    My opinions below are based upon documents, e-mails, telephone conversations and public records and represent my personal view.
    It was Mr. Lee Smolinski CEO of Palm Coast Travel/Smartcruiser who demonized “the group” some months ago. According to him and others, the group is a renegade band of profiteers led by other travel agents bent on stealing business from the accused agents.
    Mr. Smolinski has threatened me in particular and all members of “the group” with a lawsuit – twice. He and his attorney tried unsuccessfully to stop Chris Elliott publishing this blog.
    Mr. Smolinski is not the most prolific provider of unlicensed insurance but may be the most devious and arrogant. He was a former president of the local branch of Skaal International, a well known club for members of the travel industry.
    Mr. Smolinski is a shrewd businessman not only running Palm Coast Travel and Smartcruiser.com but setting up similar travel companies:
    Twin Fish Interline; Smart Interline; Premium Cruise.com; 6 Star Travel; Itakeatrip.com; Paymetravel; Tripsmart; Smolinski & Associates Inc; Smart Travel Group.
    Eleven companies.
    Mr. Smolinski first sold the illegal travel insurance offered by Trip Assured in 2004/5.
    Chris Poucher was a salesperson for Trip Assured and Jerry Watson was VP of Sales. Prior to Trip Assureds’ demise, Jerry Watson and Chris Poucher thought the idea of such a simple and profitable scam was too good to miss for themselves, so they formed Vacation Protection Services (VPS).
    VPS did a roaring trade, defrauding 19,000 Floridians, mostly seniors out of an estimated seven million dollars.
    It was around this time that Mr. David Goodis President of Revelex and Jerry Watson were introduced to Mr. Smolinski. According to Chris Poucher, who was present at the meeting, Revelex “ran” Mr. Smolinski. Shortly after Mr. Smolinski hired Benda Nolan a VP of Revelex to work at Palm Coast Travel.
    Revelex shared commissions paid by Trip Assured in partnership with various travel agents – 670 of them.
    By late 2006 a class action law suit was in full swing and Trip Assured received six cease and desist orders so rather than face the music, they liquidated.
    As you can see, Mr. Smolinski, Mr. Goodis, Ms Nolan, Jerry Watson and Chris Poucher are all good friends and business buddies in the travel industry. Such good friends, in fact, that Mr. Smolinski sponsored Jerry Watson for a Skaal International membership. (David Goodis is also a member)
    Poster Al will say I am driveling?
    At this point in 2005/6 Mr. Smolinski is in with some major fraudsters, he can run 11 companies with his right hand tied behind his back; but, he doesn’t know he is selling an illegal product?
    By 2007/8 Jerry Watson set up Traveler Protection Services in Illinois and Prime Travel Protection and Universal Assured in Colorado. Along the way Vacation Protection Services dissolved due to pressure from state regulators in Tennessee. Mr. Smolinski had periods doing business with Jerry Watson during all this time.
    In November 2007 Mr. Smolinski took $309 for my trip insurance and sent a summary of the policy from Access America (a legitimate provider). But, he did not order or buy a policy at all – he pocketed the money.
    On March 4, 2008 I canceled my cruise but rebooked at a later date. Palm Coast Travel was caught out! They quickly bought a policy from Access America on March 5, 2008 and then promptly cancelled it on March 6, 2008.
    So, still no policy for me but Mr. Smolinski has my money.
    He never did buy a policy on my behalf until August 28, 2008 a day that will go down in infamy!
    Enter stage right one PRIME TRAVEL PROTECTION and Mr. & Mrs. Watson, Tracy and Danielle.
    By now Mr. Smolinski and Jerry Watson are cozily in the same club and have done business over four or five periods of time.
    However, Mr. Smolinski knows Mr. Watson and PTP are legitimate because he did his due diligence.
    With Colorado Department of Insurance – NO? With state business registration and license departments – NO? Criminal records – NO? Search engines – NO?
    Mr. Smolinski the adroit and smart operator of eleven companies, former president of Skaal International sent one e-mail to discover the truth about PTP.
    I bet you can guess – to JERRY WATSON. I believe Jerry testified that JERRY was a good guy.
    According to Palm Coast Travels staff and their CEO nothing was known of Mr. Watson’s unlicensed products from six companies with eight bogus underwriters. Oh, and nine cease and desists – what cease and desists?
    In my opinion Mr. Smolinski:
    Cheated me by representing he purchased insurance for $309 when he did not.
    He was responsible for advising me to take out a false insurance policy from an unauthorized entity.
    Mr. Smolinski was not licensed to sell any insurance in Florida.
    It is impossible for Mr. Smolinski, given the intricate of the scam and the closeness of relationships, that he did not know the whole kettle of fish was fraudulent.
    Next time the infamous Russo’s.

  • Jack Graziano

    I was told to make my insurance payment separately to order of Legendary Journeys, not Travel Protection Services. I did not receive the insurance policy until after payment was made. My $2000. deposit was made over the phone via bank debit on 11/17/07. I received the invoice on 12/21/07, with yellow booklet with information about the trip. Therefore I was not able to cancel and get a full refund within the 30 day cancellation provision under Florida law.

  • Peter

    There is little doubt that the major league travel agent partners of Jerry Watson are Vacation Superstore Network /BPC, Palm Coast travel (Smarrtcruiser.com), Legendary Journeys, J B Cruises and Anchors Away, all Florida based.

    Florida is the outright champion in scamming travelers.

    Today we will address Ronald and Sandra Russo owners of Vacation Superstore Network d/b/a Best Price Cruises. What I have to say is my own opinion based upon documents in my possession and discussions with BPC clients.

    BPC and LJ vie for the most prolific number of complaints, but who cares?

    The Russo’s were involved at the inception of the Trip Assured travel insurance scam and followed Vacation Protection Services with Chris Poucher and Jerry Watson sliding seamlessly into Travelers Protection Services and then to Prime Travel Protection and Universal Assurance. They have been partners and collaborators since the scam began in 2003.

    How do I know the Russo’s were involved in the beginning?

    On 6/16/2003 Mark Golden sued VSN/BPC and Trip Assured. An out of court settlement was made to satisfy Mr Golden and I, the media and Florida Bureau of Investigation, have confirmed this with Mr. Golden.

    In 2003/4 Jerry Watson VP sales for Trip Assured was the personal sales person for BPC.

    In, May 2004 there was a famous memo to staff (thanks to Jerry Watson’s staff) that basically said: Since we now have an even more exceptional insurance plan ……………..[Jerry Watson certainly turned out to be exceptional].

    But, within that memo there was the most extraordinary verbiage to inspire (!) the BPC team (look up your business class 101 – carrot and stick).

    IF YOU SELL LESS THAN 20% INSURANCE [ON CRUISE BOOKINGS] YOU WILL BE PENALIZED $5 PER BOOKING IF YOU DO NOT SELL INSURANCE.

    Again, according to my Watson contact, Ron Russo had the power of the Almighty when it came to who Watson would pay. A popular tactic at the time was pay a part claims if the cruise line had not got to the no cancellation deadline.

    The Russo’s accepted a “teach-in” by Mr Watson as late as October/November 2008 to communicate the facts and benefits of the new PTP insurance/protection scheme. During that meeting several staff members were present and, according to my Watson contact, told the audience his policy was not insurance but PROTECTION. But, six state judges had determined protection was INSURANCE.

    The Russo’s always represented this protection as INSURANCE.

    The Russo’s and Watson got a real kick out of outsmarting the Florida regulators and bragged amongst colleagues and staff that the law didn’t cover protection.

    The Russo’s took their clients and Florida regulators for imbeciles for SIX years.

    In January 2009 enough was enough and the Krakovers sued VSN/BPC for a substantial amount. The suit is ongoing and was filed in the HC-Historic Courthouse in Florida.

    In communications dated March 2009 the Russo’s and Stephanie Landis tried to explain to clients and staff that the cease and desist was not about restricting a travel agents right to sell travel but only [a minor problem] the legal ability to sell insurance in Florida.

    Seventy five percent of Russo’s argument was the above. They seem to have ignored six years of illegal activity which cost Floridians, mostly seniors, a cool $40,000,000, 40% of which went into the travel agents pocket.

    For the coup de grace enter Jim Mahlmann. Jim, one of the group, must be a hoarder of records and thank goodness.

    Jim produced irrefutable evidence that BPC has dealt with every single unlicensed illegal Watson linked company.

    Trip Assured
    Vacation Protection Services
    Traveler Protection Services
    Prime Travel Protection

    The Russo’s/VSN/BPC called the product INSURANCE in all order, booking and invoice documents.

    Currently the Russo’s are away vacationing at the victim’s expense; but, through the grapevine bookings for cruises are down a considerable percentage and clients are asking if their money is safe?

  • Ben99

    Two of our group are veteran victims of the recent travel insurance scams. I asked one about the high level blocking of state action against Trip Assured (Trip Assured were the first villains and created the model which Jerry Watson and Chris Poucher used).

    Here’s the story:

    Complaints in Tennessee were directed to the Tennessee Dept. of Commerce and Insurance Consumer Affairs. This department was (and still is) headed by Mary Clement. Mary Clement is the wife of Bob Clement – former Tennessee Congressman.

    Mack Johnson (Trip Assured president) and the Clement’s are long time friends. In fact, Johnson flew Clement around the state in his private plane during his 2002 election run.

    Some have confirmed that Bob Clement actually met with regulators in Florida to help Johnson start his business and interfered with the Tennessee state regulators when the heat was on Johnson. None of this has been confirmed, but multiple sources did validate that this did occur.

    Johnson’s lawyer, David Broemel was a former Tennessee Insurance Commissioner and big contributor to Clement’s campaigns. Everyone was tied together.

    It’s easy to understand why we went nowhere for a long time with Tennessee. When Tennessee finally issued the C & D we found that complaints had been piling up for almost four years. Had we not beaten down the doors, I’m sure Johnson would still be in business today.

    I truly hope the same is not happening in Florida today.