Many airlines have rewards programs for businesses. These programs allow you to double dip, as you can accrue points in your personal frequent flyer account, and also in the business account (though you earn points in the business account at a slower rate). For example, on the blog we've extensively covered American's Business Extra program,…
Continue reading: Woman Arrested For Misusing Former Employer’s Delta SkyBonus Points
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Given Delta's declaration that "Miles are not the property of any member," what exactly was stolen? How does one misappropriate company property the company does not own? If the property actually belongs to Delta, how can you value property that no set value? Can Delta produce any evidence of value, such as a published awards table? This poor New Hampshire woman had better call Saul for false arrest.
https://www.delta.com/content/dam/delta-www/pdfs/skymiles/SM_MemGuide.pdf
I don't get this either. So she booked trips and accrued personal miles, but it sounds like double-dipping is allowed...?
@ Jim -- The SkyBonus points belonged to the company and not to her, which is why it's an issue. This wasn't her personal SkyMiles account, but rather Brookstone's SkyBonus account, at least based on this article.
The argument has to be that $300k of paid travel was the only way to *earn* the number of points she accumulated, and so she stole something that cost her employer $300k, even if that thing itself has a value far less.
I think you're right, Lucky, that it's BS to claim they have such a high value. Doubt she'll owe damages over $5k.
Crazy how they go after her but not the bankers who screwed the US out of billions during the financial collapse l.
@AlohaDaveKennedy I agree, that's a very good legal point. If it has no value and is not the property of the company that claims being defrauded, there's going to be a very interesting debate there.
@Lucky, if you get developments, please report on them!
@Lucky, just a quick note on the math. They're charging 85,000 for five (5) single visit passes, in dollars that would be worth 5*$59 = $295. Using that exchange rate, 2,000,000 SkyBonus points is worth approximately $7K. Still way, WAY off from the police's alleged $300K. That is crazy!
@Brandon - Damages are for civil suits. This woman has far bigger problems, as she's facing criminal charges, meaning possible jail time.
@Brandon, interesting argument. I can almost see that working under an expectation warped restitution theory.
Depending on how she accessed the miles, they would probably have more luck going after her for wire fraud. Especially if the defense argues the company didn't own the miles in the first place.
This lady can get much better advice on how to save her a.. in this blog than by hiring any attorney. 🙂 Lucky: you could help her.
The only question here is restitution. What is the cost to buy those missing miles or points? That’s the real value in a case like this.
The defense calls Mr. Lucky as an expert witness regarding the valuation of Delta Skybonus Points
@mjolnir22 - no joke, if I were the defense attorney I think Ben would be a very good expert witness for valuation.
@lucky, probably worth figuring out your day rate for your services so when that call comes in you're ready!
Does the IRS have any interest in this case? Billions of dollars worth of purchases/transaction happen every year that go untaxed. Wouldn't they just love to have a court attach a monetary value to points?
The scary part about this is that if found guilty in this as in the case of Senator Menendez, points now will have been proven to have a value in court, meaning that the government may try to tax them...
Gunter hit the nail on the head IMHO. The IRS would love to be able to tax travel and hotel points. So far, the airlines and hotels have demurred, saying that points are gratuities they extend to their best customers, with no ownership value. As soon as a court sets a value, the next step will be taxation of travel hackers.
@AlohaDaveKennedy , agree! better call Saul! i think most ffp claims points do not have value. and belong to the ffp company.
i.e. from ihg T&C section 12 https://www.ihg.com/content/us/en/customer-care/member-tc#points
Points have no value. IHG® Rewards Club points are not redeemable for cash or any other form of credit and have no value until presented for redemption in accordance with the terms and conditions of this Programme. Points have no fixed or ascertainable cash value. Members have no ownership interest in accrued points and accrued points do not constitute property of the members. Use of the word earn in marketing materials in relation to IHG® Rewards Club points shall mean collect and shall not infer that the points have any value until they are presented for redemption. Points may not be purchased or sold and are not transferable except as otherwise stated herein.