BY MATT HERSH
A Salem travel company has been issued a $500,000 penalty after receiving multiple complaints of deceptive business practices and fraud.
The decision to fine Horizon Travel was issued by a Rockingham County Superior Court judge who approved assessing $100,000 fines for each of five felony counts.
Each of the counts charged the agency with violating the state’s Consumer Protection Act by not telling their customers that they could apply for refunds within three days of signing a contract.
Horizon Travel was also found guilty of failing to post a bond with the state.
State prosecutors asked the judge to decide on the matter after representatives from Horizon Travel failed to appear at their April 26 court date.
Senior Assistant Attorney General Constance Stratton said that more than 70 complaints were filed against the agency at her office.
Those who filed complaints said they were tricked out of thousands of dollars by the agency, which said it would offer deep discounts on trips after people joined for about $5,000.
Many of Horizon Travel’s members have spoken out against the agency, saying they never received any discounts and company representatives were unwilling to refund their money.
Shortly after a lawsuit was filed against the company by four couples, the business moved out of Salem and state officials have been unable to track down its employees.
Despite the assessed fines, it is unlikely that the state or Horizon’s customers will ever see any money returned to them.
Horizon Travel is owned by David G. Vavro, whose other business – National Vacations – has a current mailing address in Arlington, Texas, according to the lawsuit.
In 2003, Vavro’s Texas business lost a $64 million civil case where they were charged with deceptive business practices.
Calls to National Vacations were not returned.
Since Horizon Travel claims to be an independently operating company, Vavro was not named in the recent lawsuit.
Stratton said she has been notifying dozens of the agency’s customers about the outcome of the lawsuit.