Travel agency files for bankruptcy amid investigation for fraud

While the majority of tour operator bankruptcies occur in the classic circumstances of not being able to bring in the necessary funds, there are also instances of outright scams and fraud.

The FBI's Chicago Field Office is currently investigating the owners of a travel agency suspected of defrauding customers of over $180,000 by collecting payments and then canceling reservations.

In addition, a high-profile case of a United Airlines  (UAL)  traveler on the hook for $17,000 after getting on the phone with someone impersonating the airline has been making industry waves over the last week.

Things have also fallen apart for an Oklahoma travel agency being investigated for fraud.

Tour operator accused of writing bad checks, sending travelers on trips that didn't exist

For one travel agency in Oklahoma, the legal troubles go back at least two years, after customers who booked travel packages with Wiford Tour and Travel started complaining of paying funds and then finding out they had no tickets or hotel accommodations.

In May 2024, the Oklahoma State Attorney General's office began investigating owners Diahann and Kenneth Wiford of Miami, Oklahoma, in the state's Ottawa County for suspected fraud and writing of bad checks. 

The company sold trips to popular destinations such as Disney parks and beach resorts in Florida, while the Wifords repeatedly denied doing anything wrong.

Related: Tour operator near bankruptcy, travelers stranded across Europe

"What I can say with certainty is this: There have been no charges filed against me, and after more than a year of investigations, there's nothing new to report," Diahann Wiford wrote in an Aug. 28 text message to a local Oklahoma reporter.

But as the attorney general's investigation nears completion and has been filed to a prosecutor for any potential charges, the Wifords have now filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Oklahoma in Tulsa.

"We are sitting in Florida after paying for Disney tickets that never showed up"

Unlike a Chapter 11 filing, Chapter 7 bankruptcy skips over efforts to restructure the company and goes straight to asset liquidation in order to discharge all business and personal debt.

In the bankruptcy filings, the Wifords listed debts of between $500,000 and $1 million owed to 48 creditors as well as monthly family expenses of $840, while claiming monthly earnings of just $450 for Kenneth Wiford.

Since filing on Aug. 20, the Wifords deactivated their social media accounts. Diahann Wiford is also registered as the founder of other travel companies under names like Cheap Branson Fun, Wiford Tour and Travel, and Wiford Travel.

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The Miami Police Department reported over 700 customer complaints. In addition, Wiford Tour and Travel's Yelp page has an average rating of 2 out of 5 and countless reviews accusing it of selling nonexistent trips and then becoming unreachable for assistance.

"You will not receive your tickets," Alysia O. of San Francisco wrote in May 2024. 

"We are sitting in Florida after paying for Disney tickets that never showed up. They say they will email them the night before by midnight, never showed. Customer service is closed. Other families in our group had their reservations canceled (after they paid) and had to sit around, make bunch of calls before things got taken care of!"

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