Travel agent
says he erred but
didn’t steal
Jimmy's Travel funded charters
By Rod Ohira
with clients' payment for
future trips
Star-BulletinJames K.S. Lee, owner of a bankrupt travel agency that failed to deliver purchased Las Vegas packages to 2,000 customers, will plead guilty to first-degree theft but says he didn't steal any money for personal gain.
"The public should know it was misapplication of the client trust fund that is the theft," Lee said today in an exclusive interview with the Star-Bulletin prior to his arrest. "I didn't pocket the money."
Brian Pang, Lee's attorney, said his client was to be arrested and charged later today, and would plead guilty if charged with first-degree theft.
Jimmy's Travel opened in January offering $289-$299 Las Vegas packages, and monies paid for future charters were used to offset losses of $50-$80 per person, Lee said.
"I used future monies to pay for present flights," the 56-year-old Lee said. "Our intention to give loss leaders was to get people in, but whenever we tried to raise the price, people wouldn't come in."
Lee said he received bad advice from a consultant about using the client trust fund.
"I thought it was wrong but I didn't know it was criminal until later," Lee said. "I'm an adult and I can think for myself, but I had to trust (advice) and that's what got me into this. I don't put blame on anyone except myself, but that's what happened."
Lee worked for 12 years in marketing, recruiting high rollers from Hawaii for three Las Vegas casinos -- the Rio, Gold Coast and Tropicana -- but lost his job in May 1997.
He was drawing unemployment, Lee said, when a former local travel retailer contacted him in August or September. The retailer asked if Lee wanted to work with a trip escort starting a Las Vegas charter business in November 1997, Lee said.
"I went to Las Vegas and arranged the room-and-food packages for the charter, but one day (the escort) called me to tell me (the retailer) dropped the ball and couldn't come up with the $200,000 (letter of credit required by the U.S. Department of Transportation)," Lee said.
"When I told them I already committed to people in Las Vegas, (the retailer's) remark was 'why don't you take over the charter.' I told them I don't have any experience, but they said 'we'll advise you.' "
So Lee opened Jimmy's Travel in January 1998. The agency closed its doors six months later, leaving 2,000 customers without Las Vegas packages they had purchased.
"My whole concentration (from January to June) was trying to get income for the next daily and weekly flights out," Lee said.
"All I wanted to do was give the people of Hawaii a choice (of charter packages)," Lee said.
"There hasn't been one day that I did not think back and ask myself, why? I'm going through hell and my credibility is below zero. I can't find a job, and my reputation is ruined for life."
Detective Aaron Correia, who investigated the case, said police received over 400 complaints from customers. The first-degree theft case is based on a combination of cases totaling over $20,000.
Correia confirmed the investigation showed monies were being used to cover business expenses.
