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Bret A. Gordon, Wire Fraud, Massachusetts 2016

Bret A. Gordon, 44, of Waltham, Massachusetts, is headed to federal prison after masterminding a $2.9 million fraud scheme that left hundreds of retirees and vacationers stranded. The former owner and operator of Tom Harper Cruises was sentenced today in U.S. District Court in Boston to 46 months behind bars, three years of supervised release, and ordered to pay $2,891,092 in restitution to victims.

Gordon pleaded guilty in November 2016 to six counts of wire fraud and two counts of filing a false personal tax return. As the 65% owner and sole financial manager of Tom Harper Cruises, he had complete control over customer deposits. Instead of paying cruise operators, Gordon siphoned off $2,258,500 between September 2013 and June 2015—most of it funneled straight into casino gambling binges.

The business, based in Newton, specialized in upscale European river cruises, marketed to middle- and upper-income travelers. Customers handed over thousands in deposits, trusting the agency to deliver dream vacations. Instead, their money vanished into Gordon’s personal spending hole while he kept booking trips the company could never fulfill.

By mid-2015, the fraud had snowballed. Tom Harper Cruises couldn’t cover basic expenses, let alone pay partner cruise lines. In June 2015, the business collapsed, filed for bankruptcy, and shut down operations without warning. Roughly 400 customers were left holding canceled itineraries after collectively paying $2.9 million for trips that never happened.

Gordon didn’t stop at defrauding customers—he defrauded the IRS too. He failed to report $165,000 in stolen funds as income in 2013 and concealed $900,000 the following year. The unreported windfall allowed him to live beyond his means while victims saved for vacations that evaporated.

The case was announced by Acting U.S. Attorney William D. Weinreb, FBI Special Agent in Charge Harold H. Shaw, and IRS-Criminal Investigation Special Agent in Charge Joel P. Garland. Assistant U.S. Attorney Mark J. Balthazard of the Economic Crimes Unit prosecuted the case, calling it a ‘betrayal of trust on a massive scale.’ Gordon now begins his 46-month sentence with no guarantee his victims will ever see their money back.

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