Larry Webb, owner of the Salt Lake City-based Learning on Location student travel company, has been hit with an administrative citation from the state alleging he is guilty of 300 counts of violating Utah's consumer laws and faces potential fines of $750,000.
Webb organizes student trips to New York City, primarily to enjoy Broadway plays, tours of the city and sightseeing, but recently his firm did not come up with funds for trips already paid for by students from all over the United States and Canada.
As a result, many trips were canceled even though the young people had paid, while others were partially saved by parents and students who shelled out more cash on top of what they had already handed over to Learning on Location. The citation alleges Webb engaged in "deceptive business practices" because he took $400,000 from 300 people for various tour contracts, but failed to live up to the requirements and did not give full refunds.
"Larry Webb took thousands of dollars from 300 people with the promise of a complete Broadway experience in New York City," Francine Giani, executive director of the Utah Department of Commerce, said in a statement. "At the last minute, Mr. Webb pulled out of these contracts and left many kids hanging without hotel rooms, airfare or show tickets.
"Now it's Mr. Webb's turn to face the music," Giani said.
Allen Walsh, attorney for Webb, did not return phone messages from the Deseret Morning News.
Jennifer Bolton, public information officer for the department, said Webb had been served with the citation Thursday.
"The ball is in Mr. Webb's court," she said. "Our investigator has been working with his attorney. In the past, he has told other media he wants to pay these folks back, so we're hopeful he will come to the table and want to work out a payment schedule with these people."
Webb can request a hearing and work out some arrangement with the department. If he does not respond, the department will then enter a civil order for the full amount in 3rd District Court, Bolton said.
In such cases, it is typical that the department investigate first and then, if any potential illegalities are found, information is turned over to the state Attorney General's Office. Bolton said nothing had been given to the attorney general now, although she did not rule it out.
The citation alleges that Webb violated the Utah Consumer Sales Practices Act.
Clin Eaton, a Riverton High School teacher who had arranged a trip for several students and adult chaperones for June that narrowly escaped being called off, was elated at the state's speedy response.
"I thought they would be investigating for month and months," Eaton said.
He and another teacher, Tamara Adams, from West Jordan High School, each had organized trips independent of their respective schools with Learning on Location. They learned on a Friday before their Monday departure that bills had not been paid, and they spent a frantic weekend trying to save whatever they could of the long-anticipated trips.
Their students, many of whom worked part-time jobs to raise the funds, paid more than $1,700 to Learning on Location, but only some of the promised expenses had been covered.
Students and parents scrambled to come up with an additional $400 to $600 to save the trip, but some young people had to bow out because their families could not afford it.
The trip was saved and the students who got to go had a great time, although Eaton said he and his wife were seriously "sleep deprived" after struggling all weekend to pull something together for them.
Eaton said he is grateful to many people, especially some company owners in New York City, who went out of their way to offer deep discounts to help the students. He also notes this was a hard lesson in consumer economics for the young people and hopes they will get some money back. "These are students — they worked minimum wage jobs for this."
E-mail: lindat@desnews.com