A man was arrested on suspicion of fraudulently earning more than 42 million frequent flyer miles
- US federal authorities have accused a man accused of earning 42 million Delta frequent-flyer miles through fraudulent means.
- Prosecutors say the man took advantage of a program that is supposed to reward businesses for employee travel.
- The airline said the miles were worth $1.75 million.
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A man was indicted this week after federal prosecutors say he earned more than 42 million Delta frequent-flyer miles by committing fraud.
Gennady Podolsky is a managing partner of a Chicago-based travel agency, Vega International Travel Services. According to prosecutors, he earned the miles through Delta's SkyBonus program, which allows businesses to earn frequent flyer "SkyMiles" when their employees travel.
According to the indictment, Podolsky created a SkyBonus account for a fertility center that was owned by a relative of Vega's president. When Podolsky's customers flew Delta, booked through Vega Travel, he would enter the fertility center's SkyBonus information, even though the travelers were not employees of the fertility center, nor had any connection to it.
Prosecutors say that Podolsky earned and redeemed more than 42 million SkyMiles this way, which the airline valued at $1.75 million.
Podolsky, a dual Ukrainian and American citizen, has been relatively prolific in his role as a travel agent and advisor. In a 2016 profile in Wired, Podolsky said that he preferred to think of himself as a "creative manager."
Podolsky could not be reached for comment on Friday, and Delta did not immediately return a request for comment.