Atlanta Points of Light replaces money lost in travel scam

Atlanta’s Points of Light Institute has turned over to law enforcement authorities the results of its probe into an online auction site that sold nearly $7 million worth of travel packages that weren’t delivered.

The investigation discovered that the contractor running the site as a way to raise funds for the organization lost money and began selling a high volume of travel deals below cost to try to generate cash flow. The contractor also apparently used some of the money for personal expenses and unauthorized purchases, according to Michelle Nunn, president and CEO of the institute.

The institute has refunded victims using donations designated for that purpose, insurance and loans, according to an e-mail from Nunn.

She did not say what law enforcement agency will be involved in the case.

The online store started under the Points of Light Foundation of Washington, which merged with Atlanta’s Hands On Network in 2007. It maintained offices and workers in both cities. Both organizations were doing similar work encouraging, training and coordinating volunteerism across the nation.

Last June, the organization began getting complaints that the store, run by a contractor, was not delivering travel packages it auctioned to raise money for the merged nonprofit.

The Points of Light Institute has put new controls in place and will consolidate financial, human resources and technology management in Atlanta, Nunn said.