ANCHORAGE, Alaska -- A court has ordered tour company operator Jennifer Christensen to pay Affordable New Car Rental close to $30,000 for fraudulent business practices. The Anchorage, Alaska-based operator, however, isn't optimistic about receiving payment.
Christensen was the president and owner of Ask Alaska Travel & Tours, and worked with Affordable New Car Rental to book car reservations for clients visiting the state. The rental operator's lawsuit charged that Christensen failed to pay for rentals reserved between August 2002 and July 2003, said Tony Allen, general manager.
"The judgment was awarded in our favor, but we don't expect to see any money," Allen said. "She's spent it all and I'm sure there's nothing left." The judgment is against Christensen personally, not her bankrupt tour company.
The rental car company had done business with Christensen for three years prior to the lawsuit. Allen said there had been warning signs of delinquent payments in the past.
"We work with tour companies to expand our business," Allen said. "It's an important relationship because [the rental car agency] is the one to start and finish travelers' trips. But we've narrowed who we're willing to work with now."
Overdue payments accumulated because Christensen would book car reservations and require her customers to prepay, but never pay Affordable New Car Rental after the rental was completed, Allen said.
Christensen was arraigned in June on a 21-count indictment for credit card and wire fraud and initially pleaded not guilty. She will change her plea to guilty on some of the charges, defense attorney John Murtagh told the Anchorage Daily News. The guilty plea is part of an agreement Murtagh is negotiating with federal prosecutors to reduce the sentence, which carries a maximum penalty of 105 years in prison and a $5.2 million fine. Murtagh added that under the plea agreement, Christensen's prison sentence could range from eight to 37 months.
Neither Murtagh nor William Artus, Christensen's civil case attorney, returned calls to Auto Rental News.
In addition to the rental car company's individual lawsuit, the State of Alaska brought two consumer-protection civil cases against Christensen in state court, one for the tourists and travelers who used her services and one for vendors.
The settlement reached in May places a 10-year ban on Christensen from acting in an ownership, management, consulting or officer position in businesses that process credit or debit card transactions.
This ruling stemmed from the state's charges that Christensen violated the Alaska Unfair Trade Practices and Consumer Protection Act as well as committed fraud and misrepresentation.
"Travel plans and itineraries scheduled for the height of Alaska's summer tourism season were disrupted or ruined as a result of actions of [Christensen and her company]," said Attorney General Gregg D. Renkes.
Affordable New Car Rental did receive some financial reimbursement from the state's case along with other vendors, but not nearly the amount that was lost doing business with Christensen, Allen said.
Established in 1985, Affordable New Car Rental's one location has a fleet of approximately 350 vehicles.