Acting as agent in cruise sales leads to conviction

Fort Erie woman found guilty of violating Travel Industry Act

A Fort Erie woman who promoted an all-inclusive Caribbean cruise as a fundraiser for a local legion — a trip which left shocked customers stranded with no way to get home — has been found guilty of violating the Travel Industry Act.

In an Ontario Court of Justice in St. Catharines on Friday, Judge Joseph Nadel found Karen Gushue, also known as Karen Robinson, guilty of two counts of acting as a travel agent without first being registered to do so.

The 49-year-old will return to court April 12 for sentencing.

Convictions under the Travel Industry Act are subject to fines up to $50,000 per offence and/or up to two years imprisonment.

Lawyer Tim Snell, representing the Travel Industry Council of Ontario, told the judge he would be seeking a custodial sentence.

Court heard Gushue had been a member of the Royal Canadian Legion Br. 230 in Ridgeway. Between August 2016 and February 2017, she organized and promoted two vacation packages at the branch.

The first promotion was a four-day cruise package to the Bahamas in February 2017. The second was a trip to Hawaii.

The Bahamas cruise was offered at

$650 and included round trip airfare as well as food and alcohol.

It was during the cruise, however, that guests discovered their packages only covered the flight down to Florida. They had to make their own arrangements and pay for their own return flights.

Also, all alcoholic beverages were to be included while on board, but no such amenity was provided.

After the cruise, Niagara Regional Police received more than 100 complaints and scores of dissatisfied customers complained to TICO, which administers the Travel Industry Act.

Lawyer Rachel Lichtman argued at trial her client was not acting as a travel agent when she organized the packages. She said Gushue didn’t sell the vacations, rather she bought travel services on behalf of a large group of people.

The judge disagreed.

“While Gushue did not euphemistically style herself as a ‘travel consultant’ and while she avoided using the title ‘travel agent,’ she is guilty of the offences charged because she acted as a travel agent or held herself out as being available to act as a travel agent when she was not registered as a travel agent,” the judge said.

“The formality of the documentation that Gushue had her consumers sign distinguishes her from an informal group of friends who decide to take a trip together and nominate one or more of their number to do some co-ordination or organization on behalf of the group.”

The Travel Industry Act defines a travel agent as an individual who “sells, to consumers, travel services provided by another person.”

Court was told Gushue promoted the trip as a fundraiser for the legion. The evidence on how the trip would raise funds for the branch was not consistent but several witnesses testified Gushue claimed the trip was in support of the branch, or as a fundraiser for military veterans.

In addition to individuals not receiving the benefits and amenities they had been promised — including a return flight — a number of people who cancelled their cruises did not receive refunds, despite cancelling the trip in a timely fashion.

A second cruise, this time to Hawaii, was also promoted by Gushue but never occurred.

Gushue also faces criminal charges of fraud over $5,000 and fraud under $5,000. Those matters remain before the courts.

Formed in 1997, TICO is a not-for-profit corporation which administers the Travel Industry Act and the Ontario Travel Industry Compensation Fund.