An Atlanta-based travel agent, Maurice Eugene Smith, founder and CEO of the Eugene Toriko travel agency, has found himself in serious trouble this week. He was arrested and criminally charged in connection with a Bahamas trip for the George Mason University men’s basketball team that never took off. The FBI alleges that instead of using the $159,756 spent by the university and its foundation, Smith used at least some of the money for his own getaways to Mexico and Panama. If convicted of wire fraud, he could face a maximum of 20 years in prison.

Unraveling the Bahamas Trip Fraud Scandal by an Atlanta Travel Agent

Details of the Fraud Scheme

According to a criminal complaint filed this week in the U.S. District Court for the Eastern District of Virginia, Smith's alleged fraud scheme ensnared multiple victims. In addition to the George Mason University men’s basketball team, an unidentified private college's men’s baseball program and the international studies department of an unnamed four-year public university in Georgia were also affected. The VII Group, which arranged the Bahamas trip for GMU and operates the annual Holiday Hoopsgiving tournament in Atlanta, is not accused of wrongdoing.Representatives of GMU, Eugene Toriko and the VII Group did not respond to emails seeking comment Thursday night. After the trip was canceled, the VII Group took responsibility, stating they deeply regretted not meeting expectations. The university said it was working to resolve the matter and secure refunds. However, as of now, no money has been reimbursed.In early September, Sportico reported on the FBI's interest in the matter after obtaining communications through a public records request. The VII Group began discussing a potential trip with GMU's men’s basketball team in June 2023. CEO Chris Williams contacted Smith, known through a mutual acquaintance, about arranging an August 2024 trip. Smith initially estimated the cost at $149,542, which was later updated to $164,336 and then lowered to $159,756.A trip contract was digitally signed in April by officials from GMU, the GMU Foundation (GMUF) and the VII Group. Although the travel agency was supposed to handle all travel arrangements and Smith reviewed and edited the contract, neither he nor Eugene Toriko were parties to the agreement. The GMU Foundation wired an initial deposit of $55,914.60 on April 17 and a second wire of $103,841 on May 23. Using these funds, the VII Group paid $109,756.07 to Eugene Toriko in three installments. The complaint does not clarify what happened to the remaining $50,000.Smith reserved 30 seats on an American Airlines flight and rooms at the Grand Hyatt Baha Mar but is accused of not paying for these reservations. Despite this, he continued to send emails and text messages indicating he had. After sending a written apology through the VII Group, Smith initially refused to meet with the FBI. Later, in a telephone interview, he said he had subcontracted the trip to another agency but no evidence of this was found.

Smith's Previous Media Attention

Until now, Smith had received mostly positive media and PR attention. Last year, Robb Report honored him as one of the "Best Black Travel Specialists to Help You Create Your Next Dream Vacation." Travel + Leisure also featured him on its 21st annual travel agent A-list.

The VII Group's Legal Troubles

The VII Group is currently facing a lawsuit from the University of Memphis over a five-figure reimbursement it claims to be owed for its participation in the 2022 Holiday Hoopsgiving event. In court filings, the VII Group has denied being in breach of contract.