By MATT CHANDLER
Buffalo Law Journal

The owner of a Western New York travel company has been indicted for selling excursions to nonprofit entities and then failing to book those trips.

The state attorney general's office announced Tuesday that a Niagara County grand jury charged Joseph Ehrenreich, 40, of Oakwood Drive in Pendleton, with one count of scheme to defraud in the first degree, nine counts of grand larceny in the third degree and 11 counts of grand larceny in the fourth degree.

Ehrenreich was arraigned before Niagara County Judge Hon. Matthew Murphy, who set bail at $20,000 cash or bond.

Ehrenreich is accused of offering businesses and other organizations a program through which they could pay to have unlimited access to cruise vouchers. Those organizations would then distribute the vouchers as fundraising tools, marketing incentives or employee rewards. Ehrenreich allegedly claimed that he would handle all travel arrangements, citing his extensive relationships with major cruise lines and his memberships with the International Airlines Travel Agents Network and the Cruise Lines International Association. In fact, investigators said, he was not affiliated with either trade group.

According to the attorney general, Ehrenreich often convinced consumers to upgrade their vouchers, costing them thousands of dollars more in additional charges. He would then require consumers to make immediate payment by check or cash to "hold" the reservation - he would not accept credit-card payments. After receiving payment, Ehrenreich would issue an invoice with phony cruise-line confirmation and IATAN accreditation codes.

Consumers following up on such bookings later learned that those trips were never reserved.

Investigators allege that Ehrenreich stole more than $100,000 in payments from more than 20 consumers, businesses and nonprofits for cruises he never booked.

Among the nonprofit groups whose workers and volunteers were affected are the Meals on Wheels Foundation of Western New York, Beechwood/Blocher Foundation and Hospice and Palliative Care Group of Niagara County.

The Hospice and Palliative Care Group chose to reimburse $18,000 to people who purchased the fradulent vouchers through the organization. CEO John Lomeo referred inquiries about the indictment to Patricia Degan, director of public relations for the Hospice and Palliative Care Group.

"The Hospice and Palliative Care Group commends the actions of the attorney general and is confident that justice will prevail," Degan said.

If convicted, Ehrenreich faces a prison term of up to seven years.

"Posing as a legitimate travel agent, this individual allegedly ripped off more than $100,000 from Buffalo-area residents and cash-strapped not-for-profits," Cuomo said in a press release. The attorney general called the list of alleged victims "astonishing."