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Wednesday, January 09, 2008

Credit card fraud earns travel agent 10 years

FINCASTLE -- Just before Christmas 2006, Jim Jamison discovered his travel agent had charged $1,000 to his credit cards without his knowledge.

He called Donnie Hudgins to complain, saying he needed the money to buy presents for his grandchildren. Hudgins refunded only half the money.

As for the remaining $500, "I never got it back," Jamison testified.

Jamison wasn't Hudgins' only victim. Tuesday in Botetourt County Circuit Court, Judge Malfourd "Bo" Trumbo sentenced Hudgins to 10 years in prison, suspended after he serves three months in jail, for five convictions of credit card fraud. He also gave Hudgins 50 hours of community service.

Hudgins paid more than $5,200 in restitution for the crimes, but Botetourt County Commonwealth's Attorney Joel Branscom said that was just a fraction of the money lost through Hudgins' company, Botetourt Travel and Tours. Investigators estimated that Hudgins' customers lost more than $100,000 on trips that never happened, the prosecutor said.

The Botetourt County Sheriff's Office began investigating Hudgins in May 2006 after receiving complaints from customers who paid for a fishing trip to Alaska that was canceled. The investigation revealed that Hudgins was taking customers' money for prepaid trips and spending it on other things, then trying to pay for previously booked trips with the next person's money, according to previous court testimony.

However, while most of the losses resulted from what Branscom described as reckless business practices, Hudgins crossed the line into illegal acts when he made unauthorized charges to customers' credit cards, the prosecutor said.

Hudgins, 60, took the stand in his own defense, saying he never intended to defraud his customers. When business started going bad, he began juggling funds in hopes he could catch up, he said.

Branscom noted that Hudgins continued his reckless business practices even after he knew he was under investigation.

Hudgins pleaded no contest in July to six felonies. Branscom dropped one of those counts Tuesday.

After the hearing, Jamison said he was glad Hudgins received jail time. "So many people have been hurt," he said. "He needed to feel some of the pain that we have."

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