Financial Crime Archives | Email alerts

Oct. 2, 2021, 9:02 a.m. EDT

Baggage claim: Two men charged with stealing $550,000 from airlines in lost-luggage scam

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    American Airlines Group Inc. (AAL)
  • X
    United Airlines Holdings Inc. (UAL)
  • X
    JetBlue Airways Corp. (JBLU)

or Cancel Already have a watchlist? Log In

By Lukas I. Alpert

These guys now have a lot of baggage, authorities say.

A pair of frequent flyers from Louisiana have been charged with stealing more than $500,000 from airlines by filing dozens of phony lost-luggage claims, prosecutors said.

Pernell Anthony Jones Jr., 31, of Kenner, La., and Donmonick Martin, 29, of Chalmette, La., are accused of running the scam on numerous airlines, filing lost-luggage claims following 180 flights in and out of Louis Armstrong International Airport in New Orleans, despite never actually traveling with checked bags, according to court documents.  

Prosecutors say that, starting in 2015, Jones would buy tickets for the flights online using false identities and preloaded gift cards. He would then present fake identification at the airport and collect a baggage-claim ticket after paying the checked-bag fee, yet wouldn’t actually check a bag through.

Upon landing, prosecutors say, Jones would tell the airline it had lost his luggage and file a claim stating the bag contained valuable items worth more than $3,500, the maximum compensation allowed under law. He would put Martin’s address on the claim, according to court documents. 

When the bag wouldn’t turn up after a month, the airlines would pay out the $3,500, sending a check to Martin’s home in Chalmette, prosecutors said. In all, the airlines — which included American Airlines /zigman2/quotes/209207041/composite AAL +1.05% , United Airlines /zigman2/quotes/205037281/composite UAL +0.67% , Jet Blue /zigman2/quotes/207639051/composite JBLU -0.50% , Southwest Airlines /zigman2/quotes/201071949/composite LUV -2.06% and Alaska Airlines /zigman2/quotes/200972303/composite ALK -2.17% — paid $550,000 to Jones and Martin, prosecutors said.

Jones and Martin are charged with conspiracy to commit mail fraud. Jones faces up to 20 years and Martin up to five years if convicted.

Jones and Martin couldn’t immediately be reached for comment, and it wasn’t immediately clear whether they had retained attorneys. Martin’s first appearance in court was scheduled for Oct. 6, and Jones’s was set for Oct. 13.

A spokesman for American Airlines said, “We’re pleased the Department of Justice is pursuing this matter.” A representative for Southwest had no comment, and messages sent to the other airlines weren’t immediately returned. 

In 2020, airlines lost just 0.04% of the nearly 209 million bags they handled in the United States, according to the U.S. Department of Transportation. Most of those bags were eventually recovered and returned to their owners, with just 5% of those that were reported missing never being found.

/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 19.73
+0.21 +1.05%
Volume: 22.37M
Oct. 21, 2021 2:29p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$12.64 billion
Rev. per Employee
$168,812
loading...
/zigman2/quotes/205037281/composite
US : U.S.: Nasdaq
$ 46.26
+0.31 +0.67%
Volume: 10.21M
Oct. 21, 2021 2:29p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$14.88 billion
Rev. per Employee
$206,384
loading...
/zigman2/quotes/207639051/composite
US : U.S.: Nasdaq
$ 14.83
-0.08 -0.50%
Volume: 3.29M
Oct. 21, 2021 2:29p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.74 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201071949/composite
US : U.S.: NYSE
$ 48.45
-1.02 -2.06%
Volume: 8.16M
Oct. 21, 2021 2:29p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$29.27 billion
Rev. per Employee
$160,142
loading...
/zigman2/quotes/200972303/composite
US : U.S.: NYSE
$ 56.01
-1.24 -2.17%
Volume: 1.80M
Oct. 21, 2021 2:29p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$7.17 billion
Rev. per Employee
$162,113
loading...

This Story has 0 Comments
Be the first to comment
More News In
Personal Finance

Story Conversation

Commenting FAQs »

Rates »

Partner Center

Link to MarketWatch's Slice.