UA, state pay $65,000 to Russian educational service

By Megan Rutherford
Arizona Daily Wildcat
October 8, 1996

A 1992 incident involving the UA study abroad program and a travel agent has caused the university to change its policies on how money is collected for the program's trips.

During its Sept. 26 and 27 sessions, the Arizona Board of Regents agreed to pay a Russian educational service $65,000 in damages involving the incident, an executive summary stated.

Benito Kiziria provided services for the study abroad program that sent students to Russia during the summer of 1992 but was not paid by the travel agent, who absconded with the funds, an executive summary said.

Because of the situation, the university now handles all of the money that is collected from the students for study abroad programs, said Mike Proctor of the UA Attorney's Office.

The travel agency does not see the money until the students have actually left for the trip, said Del Phillips, director of the Department of Russian and Slavic Languages' study abroad program.

"(The process) limits the risk of money passing through so many different hands," Proctor said.

The travel agent who collected the student's funds for the trip absconded with the funds and failed to pay Kiziria as agreed, the regents' summary said.

Kiziria provided services at the cost of over $82,000. The university has agreed to pay $55,000 and the State Risk Management will pay $10,000 in a settlement with Kiziria, the summary stated.

Phillips said the students were not affected because they went on the trip and had no problems. But he also said Kiziria, the university, the Russian study abroad program and many others suffered at the hands of the travel agent.

"This was the most horrible thing that's happened to me in my career," Phillips said.

Phillips said he was involved with putting on that particular trip and dealt with the travel agent.

Jonathan Grinder, of the Arizona Attorney General's Office, said the travel agent was Doug DeMarco, who disappeared from Northern California.

"He was very, very smart, and nobody could prove anything," Phillips said.

The travel agency DeMarco was with was Group Travel Specialists, Grinder said. He said the agency was owned by a couple before DeMarco bought it.

Phillips said the university had never had any problems with the previous owners. He said the situation ended in the best possible way - the students were not affected.

The UA Russian study abroad program provides internships and other programs in Russia for students across the country, Phillips said. He said about 100 students, colleges and universities take part in the program each year.

"It's a real excellent opportunity for kids," Phillips said.


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