Abdul Patel, 59, of Edmonton, London and 12 others were given sentences of up to five years after three trials relating to Star and Key Travel.
The fraudsters used their company to make fake Atol claims about fictitious holidays they said had been cancelled after the failure of the travel agent.
The individuals booked bogus package holidays to Mauritius through Star and Key Travel. The holidays were supposed to take place between July and August 2014, but the company went bust in June 2014.
After the company ceased trading, 23 claims for reimbursement were submitted through the Atol scheme.
The CAA said upon investigation, “a number of suspicions were raised with inconsistencies in claim forms, as well as amendments such as forms being overwritten in pen on top of pencil”. Police were then alerted.
“Following investigations, it became clear that Star and Key Travel had been created with the express purpose of committing fraud,” the CAA said.
“The company was created by family members of Mariam Bhajun and her sons Roshan and Mohun. The Bhajuns encouraged friends and family to pose as ‘customers’ of the business.”
The scam worked by the company withdrawing cash which was then paid into a customer’s account. The customer then transferred the money back to the company electronically, therefore gaining the evidence of a transaction to submit with a claim.
Once the money was back in the Star and Key Travel account the process was repeated and cash was withdrawn from the company and paid into another customer’s account before being again transferred back to the company.
“This process was repeated on numerous occasions and provided the illusion that 23 very expensive holidays had been paid for in full and created an audit trail to support fraudulent claims against the Atol scheme,” the CAA said.
Sentencing of the 13, which can now be reported with the lifting of restrictions, included a £324,483 confiscation order, of which £48,566 was paid to the Air Travel Trust. All monies have been recovered.
CAA director Paul Smith added: “We welcome today’s conviction, along with the 12 others previously convicted regarding fraudulent Atol claims against Star and Key Travel.
“The Atol scheme is in place to support consumers who have seen legitimate holidays cancelled when their travel business has ceased to operate. It is funded by payments made into the scheme when individuals buy Atol protected holidays, so fraud such as this affects everyone who is booking package holidays.
“We constantly review and enhance our checks and processes to identify fraudulent behaviour and will not hesitate to take any necessary action against anyone found to be making fraudulent claims against the Atol scheme.”
