Federal prosecutors have charged a travel agent accused of orchestrating a Ponzi scheme and ultimately defrauding the George Mason University men’s basketball team earlier this year.
Maurice Eugene Smith, 44, of Atlanta is believed to have used the nearly $160,000 paid by the school to cover his personal expenses instead of booking the team’s anticipated trip to the Bahamas, according to court records.
Starting in April, the George Mason University Foundation began to pay an intermediary — later identified as The VII Group, a sports events marketing firm — that had secured the services of Eugene Toriko LLC, a travel agency that Smith operates, to plan and book the five-day trip, prosecutors claim.
The money paid by the GMU Foundation ultimately made its way into a bank account belonging to Eugene Toriko LLC, but Smith — who was tasked with booking airfare, lodging, excursions, games and more — never actually paid to secure the bookings, according to an affidavit.
Smith told the owner of the VII Group otherwise, continuing to “exchange numerous emails and text messages” up until three days before the team’s August departure, court documents say.
“The basketball team’s players, coaches, staff, and supporters who believed they had reservations for the trip to the Bahamas did not learn that reservations were not made for them until hours before the scheduled departure,” the affidavit says.
Smith, who was taken into custody last Thursday (Dec. 12), has been charged with one count of wire fraud, the FBI Washington Field Office and U.S. Attorney for the Eastern District of Virginia Jessica Aber announced last week. He faces a maximum penalty of 20 years behind bars if convicted.
As of Thursday, the GMU Foundation has still not been reimbursed of the nearly $160,000 spent for the trip, according to court documents.
Smith is scheduled to make his initial appearance at the U.S. District Court for the Eastern District of Virginia in Alexandria on Wednesday (Dec. 18), according to court records.
