Brand USA Whistleblower Lawsuit Challenges Cooperative Advertising Agreements
Photo Credit: Still from the trailer for an IMAX film about National Parks that's being funded in part by Brand USA. Brand USA
Skift Take
Were contributions from the travel industry to Brand USA intended to go directly back to the contributing company, at a 30 percent or greater premium, instead of funding broader marketing campaigns to promote inbound tourism to the U.S? That is part of what this lawsuit is about.
A whistleblower lawsuit filed against Brand USA by its former vice president of operations alleges that the travel promotion entity engaged in "kickback schemes" with Visit California and Visit Florida, among others, and fraudulently inflated partners' contributions to meet budgetary goals and qualify for greater federal matching funds.
Mary Ellen Curto, who served as vice president of operations for a year until she was fired in October 2013, alleges that Brand USA signed marketing agreements with partners that hinged on Brand USA reimbursing their donations to Brand USA at a minimum of 130 percent in the form of advertising and services that supported partners' existing ad campaigns and at times through the partners' own advertising agencies.
"Despite Ms. Curto's best efforts to engender a culture of compliance and accountability at BUSA, BUSA Chief Executive Officer Chris Thompson and some members of the Board of Directors remained determined to circumvent government oversight
