Consumer

Calif. Attorney General Suing Online Travel Agency

SACRAMENTO (CBS) ― California's attorney general is going after a nationwide travel company, calling them nothing more than a gigantic pyramid scheme that victimized 200,000 people across the country.

YourTravelBiz.com has grown into one of the giants of online travel by recruiting new agents from all over the country, reports CBS station KOVR-TV in Sacramento.

The company charges $500 to start a travel site and $50 a month after. Agents make money by selling travel packages or agent memberships to friends and family.

A presentation on their Web site claims to offer bonuses of $50,000 to $1,000,000 in certain circumstances.

Jerry Brown, the attorney general of California, is going after the company, hoping to get it shut down.

"This thing is growing out of control," said Gareth Lacy, spokesman for the California attorney general's office. "Companies can't operate an endless chain scheme where the only product you're offering is more membership."

Your Travel Biz company agent Dianna Crawford says she doesn't know any person in the organization who feels ripped off.

"The more time you put into it, the more money you'll make," she said.

The Attorney General's office is asking for Your Travel Biz to be shut down, and seeking $25 million to reimburse the members.

"[They've] built up a massive house of cards, and in this case, we think it's about to collapse," Lacy said. "We want to shut it down before people get ripped off."

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