A Fayetteville businessman is accused of duping universities and student athletes into paying thousands of dollars for overseas trips that never materialized.
Dale Brannan, 65, was indicted this week on federal bank fraud, mail fraud and bankruptcy fraud charges as head of Transports Athletics and later Sports Tours and Tournament Specialists Inc., according to a release detailing the indictment.
None of the universities Brannan is accused of defrauding is in Georgia.
The federal indictment says before Brannan took Transports Athletics into bankruptcy, he had persuaded universities, students and their parents to pay him $400,000 to arrange trips for overseas sports competitions.
The schools included the University of New Mexico in Albuquerque, Kansas State University in Manhattan, Oakland University in Rochester, Mich., Stonehill College in Easton, Mass., and Minnesota State University – Mankato.
The trips were arranged from September 2006 through July 2008, and they included airfare and hotel reservations for China, Finland, Italy and Brazil, according to a release detailing the indictment.
When time came for the athletes to depart, Brannan informed them that Transports Athletics, which had offices in Fayetteville and Savannah, had filed for bankruptcy and that their trips had been canceled.
The indictment, however, said Brannan actually used the money to pay the costs of trips Transports Athletics had arranged for athletes at other schools, and to pay for Brannan’s accommodations.
U.S. Attorney Sally Yates said in a statement that the students were cheated not only out of their money “but also the opportunity to compete abroad.”
After taking Transports Athletics into bankruptcy, which removed his previous debts to the universities and athletes, Brannan formed a new company, Sports Tours and Tournament Specialists, allegedly for the same purpose of arranging overseas trips for schools.
The indictment said Brannan committed bankruptcy fraud by not disclosing certain information on his filing.
Each of the mail and conspiracy charges carries a maximum sentence of 20 years and a fine of up to $250,000. The bankruptcy charge and false declaration charge each carry a maximum of five years in prison and a fine of up to $250,000.
At a federal hearing Tuesday, Brannan was ordered held pending final bond conditions.
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