OpTree

More questions keep coming up about DSA Member company YTB and whether or not the company is completely legit. Lawsuits have been filed, board members have resigned, and allegations have been flying for months now that the company, an online travel site, is running an illegal pyramid scheme. There has also been some talk about insider deals within the company.

Now comes word that amongst the members of the Board of Directors is Florida State Senator Burt Saunders, (R-Naples). Saunders serves on the Board of YTB International which operates YourTravelBiz.com.

Saunders, who is currently running for U.S. Congress has been paid in the past by the company to be its director and has received money as a consultant for the company. Financial documents show that he had received $16,000 dollars in 2007 from the company, no word yet on whether or not he has been paid for any services this year.

Currently YTB is facing two class action suits each asking for over $100 million dollars, with California asking for restitution for victims in that state. California’s Attorney General even went so far as to call YTB a pyramid scheme.

Saunders has yet to release any official statement regarding his current affiliation with the direct sales travel company, although he did say that the law suits were “silly.” In this day and age, when every politician’s life is looked into so deeply, this could have serious repercussions for Saunders if YTB is found to have operated an illegal pyramid scheme. I wouldn’t be surprised if Saunders is the next in line to step down from the board.

Popularity: 11% [?]

Although online travel company YTB proclaimed their innocence and defended themselves against accusations of fraud, it seems all is not well over at YTB headquarters. Apparently the lawsuits have begun to affect the company in a very short period of time. YTB International Inc. has reportedly terminated 25 people from its corporate headquarters this past Wednesday.

One employee who was laid off said that he and over two dozen others were told their positions were being terminated due to the tough economic situation in the United States. They were told that the management “regrets this necessary decision.”

The laid off man who asked to remain anonymous, said that ever since the California Attorney General filed a suits against YTB the company has continued to tell employees that all if fine, but that doesn’t seem to be the case.

In a recent statement, YTB CEO Scott Tomer defended the company saying, “As a matter of policy, we do not comment on pending litigation. However, we can tell you that YTB believes the allegations we’ve heard are without merit, and we will vigorously defend ourselves

YTB Employs between 300 and 350 people at its Wood River Illinois headquarters. Currently the company is spending $25 million to expand the facility. While YTB has grown significantly over the last few years, it seems that this case is hitting them hard.

A local Wood River Paper attempted to contact the company, but to no avail as the company would not respond to any inquiries regard layoffs or the current financial situation at the company.

YTB is pretty adamant about their innocence and feels justified telling their employees that all is “OK” with the company. However, for a company that is allegedly financial sound and feels secure with their business model, it seems odd that they would “lie” to their employees about the company’s stability, only to turn around and lay their loyal employees off. Instead of spending a ridiculous amount of money expanding an organization that is under attack, they should focus on treating their employees better and defending themselves against fraud allegations.

Popularity: 13% [?]