LV travel company denies feds’ fraud charges

Thursday, Aug. 5, 1999 | 11:56 a.m.

The attorney for a Las Vegas travel company whose assets were frozen by a court order says none of its customers have been defrauded.

Andras Babero, who represents Resort World, 1050 E. Flamingo Road, said the company is negotiating with the Federal Trade Commission for a settlement that would reopen the company, which shut down after assets were frozen by a temporary restraining order.

The FTC this week said Resort World advertised by fax low air fares for round-trip tickets to Hawaii or Cabo San Lucas, Mexico. But when consumers called a toll-free number, they were required to buy a minimum of four tickets and book an eight-day, seven-night stay at a hotel through the company.

"The company's objective has been do everything necessary to take care of its customers," Babero said. "We intend to fully resolve this."

Babero declined to discuss specifics about resolving the company's conflict with the FTC. A staff attorney with the agency acknowledged he has been talking with Resort World representatives.

Jerry Steiner, a staff attorney with the FTC, said 38 complaints had been received through June on Resort World, which focused most of its fax marketing plan to West Coast businesses.

Steiner said the temporary restraining order freezing assets came from U.S. District Court in Las Vegas and a hearing on an injunction is scheduled Aug. 17.

Air fares as low as $100 were offered on flights to Hawaii, Steiner said, but the company required a seven-night stay at a hotel "starting at $60 per person per night." But Steiner said packets were delivered to customers requiring an additional mailing to verify lodging and rates quoted were considerably higher.

In some cases, Resort World's verification was received too late to make lodging arrangements, Steiner said.