Man charged with scamming travel-related investors out of $450k

Discussion in 'Newsstand' started by hobo13, Jun 4, 2011.  |  Print Topic

  1. hobo13
    Original Member

    hobo13 Silver Member

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    Travelfli /UsingMiles founder charged with $450,000 scam! No wonder these jokers couldn't put together a decent product -- they were just living large in Breck! What a joke.

    'An arrest affidavit released Friday details allegations that Austin Slattery Veith, 32, raised millions of dollars over the last couple of years to fund Internet start-ups -- with the founders of online luggage giant eBags among his biggest investors -- and diverted about $450,000 to his personal accounts.'

    I'm glad that AwardWallet is poised to eat their lunch!


    http://www.dailycamera.com/boulder-county-news/ci_18203847


     
  2. UsingMiles

    UsingMiles Z Representative

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    Unfortunately, our company is one of many victims that have been identified through an investigation into money raising activities made on behalf of Mr. Austin Veith. Victims include a few investors in UsedTunes (also known as uMedia), Jon Nordmark who is UsingMiles CEO, Wambo Commerce, and a number of other individuals who have invested in Austin or his companies in the last 5 years. Mr. Veith has no current association with TravelFli / UsingMiles.com, not as an employee nor a shareholder.

    The situation has no effect on UsingMiles.com day-to-day operations, and our passionate founders and employees are 100% focused on building a wonderful new world-class travel service! In fact, UsingMiles.com is the ONLY frequent flyer travel tool that was just named one of Entrepreneur Magazine’s “100 Brilliant Companies.” We are honored to accept this accolade.

    http://www.entrepreneur.com/article/219660

    Moving forward, we intend to fully cooperate with the law enforcement and hope that the innocent people involved in this situation can find justice. We thank you for supporting us through this process.
     
  3. Randy Petersen
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    Randy Petersen Founder

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    A couple points Hobo .... actually this person was well out of the scene before UsingMiles got going recently so a bit unfair to make any connection. And in fact has nothing to do with the current set of features being released. I should know as I am an active partner with the current team. It's been five months or more since Austin has been around UsingMiles from my own experience (i think he was gone before they came out of beta) and as noted, it's not really UsingMiles but rather eBags that was among his largest investor. There really is no reason to gloat of AwardWallet or anyone else, rather i hope he gets the max sentence for defrauding people ... anyone.
     
  4. hobo13
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    hobo13 Silver Member

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    Hi Randy,

    Are you drawing the distinction between Travelfli and UsingMiles? Because my impression was that Veith was involved from the get-go of Travelfli (he was Founder, right?) and there are press releases of him with UsingMiles as late as November 2010. So while he might not have been around when they came out of invite-only Beta, it would certainly seem that he was around for the invite-only phase, and everything before that. I heard these guys speak back in 2009 or sometime -- and then there was no news for a very long time, which prompted me to wonder if he had just been living large for a while.

    Honestly, I was really excited for Travelfli in the beginnings -- 2008. They seemed to have an innovative idea. But then nothing happened for a long time, and the field got crowded. So it'll be interesting to see how it plays out.

    Finally, I think they will benefit tremendously from your involvement. Having heard them speak and read their blog posts, I never got the idea that they really understood the miles and points game --- see their bizarre infatuation with F9 as evidence.
     
  5. UsingMiles

    UsingMiles Z Representative

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    Hobo, I'll take a crack at answering your questions since Randy is traveling. Yes, Austin was one of two initial founders. He was involved up until Jan 2011 and is no longer affiliated with the company in any capacity. Austin's decisions, lifestyle, etc. really have nothing to do with the company and are obviously not the choices the rest of the team has made. We're focused on building a great product and that is what we are doing. Indeed, it will be interesting to see how it plays out. :)
     
  6. hobo13
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    hobo13 Silver Member

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