Hunting Report Extra- San Miguel Outdoors walks with hunters deposits‏

Dear E-Mail Extra Subscriber
San Miguel Outdoors Ceases Operations

Hunters and operators with hunts booked through San Miguel Outdoors should know that this agency has ceased operations. Furthermore, the company appears to be in arrears on payments to numerous operators for hunts it has booked for clients this season. In an e-mail I received today from San Miguel's president Mike Gardner, he confirms that the company has stopped operating, although he does not address the status of clients' bookings. His e-mail reads, "San Miguel Outdoors, Inc., has not been able to continue its operations due to current economic conditions and has ceased doing business. We apologize for any inconvenience. All communications should be directed to: SMO INC., PO BOX 341478, Austin, Texas 78734." Today, San Miguel Outdoors' former web site address leads to a site for San Miguel Ranch, a whitetail hunting operation in Uvalde, Texas, that is also operated by Gardner.

Representing dozens of hunting operations around the world, San Miguel's closure is expected to affect a substantial number of clients and outfitters. Already, Texas-based attorney Ryan Hammit contacted me, alleging that San Miguel Outdoors owes his Zimbabwean client more than $150,000 paid to the agency by clients for past and future safaris. I'm hearing other operators have gone unpaid as well. I've also heard from a Hunting Report subscriber who says he is out a total of $15,000 in payments sent to San Miguel Outdoors that were never forwarded to his hunt operators. Anyone with a hunt booked through San Miguel Outdoors should contact their operator immediately. I would also like to hear from hunters and operators affected by this situation. Send me an e-mail at Barbara@huntingreport.com; or call 305-670-1361. Anyone interested in speaking with attorney Ryan Hammit may reach him by e-mail at ryan@bobjoneslaw.com; or call him at 806-744-2505.

Terrible news for hunters with paid deposits, and the outfitters awaiting payment on hunts!

A fundamental concept behind using a booking agency is that your funds are kept in "escrow" and released to the hunting company as/per their agreement. While I have considered the implications of a hunting company going out of business, I admit that I have never thought to deeply about what happens if the booking agency shuts down. Is the agency able to tap into these "escrowed" funds, and is this a common practice?

Are clients ultimately responsible for making payment to the hunting company for a completed hunt which has already been paid to the booking agent? What about the hunting companies, do they have any legal responsibility to clients with deposits (or pre-paid hunts) where monies have not yet been received? Or, are all agreements/contracts strictly with the booking agency?

This could just be bad all around.

Bill C

From a Zimbabwe perspective...The client owes the operator the money. If the full ammount is not recieved and properly reciepted from outside the country, there can be NO export of the trophies.

A Prime example of this was Dr Roy Rhab's operation. He was an American who owned land in the Gwaii valley in Zim. He was murdered in 2002. No clients have got their trophies and none will from that or the preceeding year as the paperwork cannot be found. SCI has appealed to parks. The chairman of the National Parks Board is a full time employee of SCI, but no the trophies are not going...

Ganyana:

Did they ever find out who killed Dr Rhab? We met him and visited him at his house. He was close friends with a friend of mine. I don't remember what year.

I have heard disturbing rumors but don't know how true they are.

Thanks.

Bill C:

What fundamental concept of escrowing funds? Why don't you ask ANY of the booking agents on here if they actually have an ESCROW account? Again,I'm not an attorney but I'm not sure escrow accounts are even available or legal for travel agents. Also I'm reasonably sure there is no legal requirement (at least in Texas) for travel agents, which is what booking agents are, in effect, to escrow the funds tendered to them by their clients. The best you could hope for it for them to be bonded guaranteeing your funds, and I doubt that ANY of the booking agents that we know are. I'm not trying to knock the vast majority of honest booking agents, but I am saying someone is pretty much on their own when they use one.

I think the unfortunate people who paid this person deposits or who are due monies from him are in deep do-do. With a little bit of luck, they MIGHT be able to class action it and get his ranch, if he doesn't have it hocked up to it's market value. Of course, he can move to it and claim it as his home and that will allow him to keep the HQ area, more than likely.

Again, I'm not an attorney, this should be criminal and I hope they can send him up the river but I wouldn't bet on it.

Just for info's sake, here's a link to their web site: San Miguel Ranch

I note that it didn't mention the total acreage so a bit more internet research turned up this article which says it is 3100 acres. I feel sorry for his wife and kids if all of this is true: more

This ranch would be worth an absolute minimum of $1500/acre in today's market, or roughly $5 million, and probably quite a bit more. How much is owed on it is another question?

My company, Safari Classics DOES have escrow accounts and feel it a major security factor for our clients knowing their deposit is safe in a stateside account until shortly before their departure. Other companies may or may not offer this. And I would say that the full time booking agents such as ourselves, and others in the business, offer a great deal more to our customers than just "travel agents" such as gatogordo suggests. That description may fit some of the "basement agents" trying to book enough trips to get a freebie safari , but the established agents bring a whole lot more to the table than that. I have been in the San Miguel offices several years ago and thought "wow, that is the most lavish setup I have EVER seen in this business. But my setup could improve if I did not pay my operators too-until the villagers with torches and pitchforks showed up ! Lets see how this shakes out though, They may make things right,I sure hope so for all involved. Very bad for those of us trying to do it right as it undermines client confidence. I hope they step up on this.

Dave:

You can pretty it up anyway you want, and I'm not trying to insult you or any booking agent, but if you think you're anything but a travel agent, albeit a specialized one, you need to climb down off that high horse.

How do you guarantee clients access to their monies if something happened to you? Is this a real "escrow" account administered by a different agent than yourself, a bank or a lawyer, for instance, or do you just have a separate account for client's deposits, etc.? I think it this information would be educational for all of us and probably get you some more business.

G
Yes , it is handled as separate accounts for the outfitters we represent. There are three people in my company that can oversee it, and sign on it.
Unless a bomb goes off and kills us all we are okay on this end. Look, if a company, any company set's out to defraud it's customers I am sure they can do it until caught. But that is a reason to book with people with a proven track record. Buyer beware. This is not the first time I have noticed San Miguel in the Hunting Report, there have been inclusions in the hunt controversy sections before . I agree that many hunters need to research the agents as much as they do the operator. The good ones will welcome the search, as they have nothing to hide and are proud of their service. I guess we will agree to disagree on the value, or lack of value the agent brings to the party. Sorry my input into this topic was considered as "riding the high n'thorse" not intended, as perhaps your perceived bitch slap at agents was?

I didn't take a swipe at any agents, booking, travel or otherwise.

But since you made the claim, what you describe is not in any way an escrow account.

Lavish trappings are usually a bad sign, as Dave has pointed out. Perhaps trust account is a better phrase.

I have no idea what an escrow account is, but I thought it has to be operated by an independent person rather than the outfitter like in this instance.

Can someone please clarify this for me at least?

quote:

Originally posted by Saeed:
I have no idea what an escrow account is, but I thought it has to be operated by an independent person rather than the outfitter like in this instance.

Can someone please clarify this for me at least?

Exactly. Again, I'm not a lawyer but escrow accounts are most commonly used in real estate transactions or in some dealings with lawyers and contracts (in the US, 1031 tax free exchanges are one such use) where the escrowed money is not paid until both parties agree and instruct the third party (that is the person or entity who is actually holding the money)to disburse the funds. But they can be used for anything, the disinterested third party control of the funds is the key.

For a escrow to be protected from creditors of the booking agency, it would have to held by a separate legal entity (bank or law firm) held in trust for an entity other than the booking agent.

A separate account that a booking agent has in their name in which they hold funds for hunting companies would generally not be protected. While not protected, it may well be a good idea.

I didn't read everything carefully. However, I believe what DF is saying is that they hold the money in a separate account until shortly before the client leaves. While most certainly not as safe as monies held in trust at a bank, it is nevertheless a pretty good idea.

An escrow account is an account opened for a specific purpose in which funds are held by the opening party - often called the "escrow holder" or "escrow agent" - as an attorney, agent, representative or facilitator, and sometimes as a fiduciary - generally, but not always, for at least two third parties, called principals.

As a general matter, the escrow is governed by an agreement between the principals - which may be oral, but should be written - relative to the terms and conditions under which the funds are to be held and disbursed from the account.

Escrow accounts need not be, and often are not, held by an "independent" or "disinterested" person, if by that is meant someone entirely unrelated to the underlying transaction or unbeholden to either of the principals.

In the hunting industry, I would venture to say that escrows are never held by "independent" or "disinterested" persons, but always by booking agents, who work for the outfitters.

An escrow account of that kind is no more secure than the honesty and integrity of the escrow holder and the solvency of the financial institution in which the funds are held.

As for San Miguel Outdoors, if they were holding a substantial sum of my money, I would be worried.

I'm not sure of what the law is in Texas, but in Georgia, converting funds designated for one purpose to another purpose, even if those funds can be legally co-mingled, constitutes a felony if the amount is greater than $500.00.

I'll bet that Texas has a similar statute?

quote:

16-8-4 Theft by conversion.
(a) A person commits the offense of theft by conversion when, having lawfully obtained funds or other property of another including, but not limited to, leased or rented personal property, under an agreement or other known legal obligation to make a specified application of such funds or a specified disposition of such property, he knowingly converts the funds or property to his own use in violation of the agreement or legal obligation. This Code section applies whether the application or disposition is to be made from the funds or property of another or from the accused's own funds or property in equivalent amount when the agreement contemplates that the accused may deal with the funds or property of another as his own.

Mrlexma

You sir hit the target dead center.A perfect grasp of the situation.
Thanks
Dave

I believe booking agents would be using "trust accounts", not an escrow account which would involve an independant 3rd person in the form of an escrow company. A trust account is just a regular checking account that says "Trust" on it, but it is not held by a independant 3rd party. The booking agent would deposit the clients funds into this trust account to be held until it was time to properly disburse it to the outfitter. However, he is still the owner of the account and can write checks on it at anytime. He shouldn't take any profit for himself until the hunt is over with trophies delivered. I walked by San Miguels's booth at the last SCI-Reno convention and was approached by a very attractive young lady so I naturally stopped to chat since she was so much prettier than Wendell. They had the most expensive big glossy brochures I saw at the show. It looks like a classic case of too high of a business overhead during an economic slowdown. They probably started using their "Trust" accounts to temporarily relieve cash flow problems hoping things turn around. It is a common mistake with lost deposits, unpaid outfitters and criminal fraud being the likely outcome.

We have an escrow account and have had since hunting reopened in 1996. We don't touch the deposits until 60 days prior to the safari. At that time everything is due.

Rich Elliott

P.S.
San Miguel used our brochure in their catalog even after we asked them not to.
Wonder how many others did the same.

I believe that you are right BigBoreCore. And yes, it would be a Trust Account, not an Escrow Account. Let's see; Misappropriation of Funds, Conversion, Civil Conspiracy (to Defraud), perhaps Breach of Contract, Breach of the Covenant of Good Faith and Fair Dealing, Neligent Misrepresentation, Intentional Mispresentation/Fraud . . . .and the list goes on and on for claims against San Miguel, with the fraud claims not being dischargable in any bankruptcy that might be filed. And, those are just the civil claims.

Not to get too technical, but there's no generally applicable legal constraint of which I'm aware requiring that an escrow account be held by an independent third party.

An escrow account certainly must be held by a third party, but that party needn't be independent - and, in fact, may be the agent of one of the principals, as is common in the hunting industry.

But let's not get hung up on names, since the name of the account doesn't control how it's handled.

The key, in a case such as this one, is that - regardless of what the account is called - the holder of the account can draw funds from it without the approval of either of the principals.

Under such circumstances, if the account holder is a thief or a fraud - again regardless of what the account is called - the principals are at risk.

For the record - I'm not saying that San Miguel Outdoors stole funds or obtained funds in a fraudulent manner. I have no knowledge whatsoever concerning the company or its principals or what they may have done.

But in light of this news, if they were holding any of my money, I'd start asking them some fairly pointed questions right away.

Really guys, does the issue at hand have anything to do with Escrow accounts, etc, etc, NO!!

Bottom line, an agent has the moral obligation to handle the VAST majority of the money, which is NOT his/hers in the first place, honorably and with good intentions! In this case, that obviously didn't happen! I am sure different agents have different ways they handle the client's money, but at the end of the day it should all still work out the same! You receive the deposit, you withhold your commission, you transfer the remainder of the money to the outfitter, and that's the end of it, in very simple terms. I too hold money for clients if they request it, we have clients give trophy fee deposits which are held here until after the hunt is over, and most of the final balances are sent to us just prior to the hunt commencing, and that in turn is sent to the outfitter immediately! Remember this though, just because your agent receives the HUNT deposit 12 months from the scheduled hunt date, doesn't mean the hunt is BOOKED. In most cases, and I am an outfitter too, the hunt isn't booked until I the outfitter have the deposit as well!!!! So keep that in mind when using an agent! That's not the situation in every case, in particular when the agent and outfitter have a solid relationship, and the agent or outfitter insist the money stays put, but it is something to remember.

If what is being said is true, the San Miguel guys FUCKED UP badly! And quite frankly ALL of them should be responsible, NOT just the owner! Some of you know the guys that were running that operation and they have been in the "booking business" a long time! You can't tell me they weren't just as much a part of this as the owner????

The outfitter isn't responsible for a hunt in which he never got paid, period!!! San Miguel, and the guys who allowed this to happen are 100% responsible for all monies paid, and they should ALL be held accountable for returning it, ASAP!!! Not only have ALL the clients lost out, but these outfitters have lost in a big way as well! Anticipating booked hunts and paying clients in which their money never arrives, can't be good for the outfitter's bottom line either!!! In this case, everyone's a loser except for ALL associated with San Miguel Outdoors!

Of course, as a fellow agent/outfitter that's just my opinion!

Aaron Neilson
Global Hunting Resources
www.globalhuntingresources.com

Not trying to be a smart ass, but in many cases, an agent can bind a principal, whether or not the principal gets paid. What actual authority (or actionable "apparent" authority) exists in the present case, I wouldn't dare to guess. I do know that I'd be royally pissed if I had put up $20k for a hunt and had nothing to show for it... likewise, I'd be ready to strangle someone if they bound me to produce a hunt and then kept the money intended for me.

I guess that all the allegations will eventually reach a court somewhere, but for the folks who are innocent in the is mess, I wish I had a magic wand.

quote:

Originally posted by mrlexma:
An escrow account of that kind is no more secure than the honesty and integrity of the escrow holder and the solvency of the financial institution in which the funds are held.

Bingo.

Well, let's see, we have one thread where the outfitter in Africa refused to refund the 40% deposit for a Leopard hunt, and one of the responses was" Well that's why I use a booking agent", presumably one in America. Now, it seems we have a booking agent that isn't quite straight arrow. Perhaps the experts can give us some guidance here?
Peter.

quote:

Originally posted by Gatogordo:
Just for info's sake, here's a link to their web site: San Miguel Ranch

I note that it didn't mention the total acreage so a bit more internet research turned up this article which says it is 3100 acres. I feel sorry for his wife and kids if all of this is true: more

This ranch would be worth an absolute minimum of $1500/acre in today's market, or roughly $5 million, and probably quite a bit more. How much is owed on it is another question?

his wife is the lady shooting a canned lion with Tam Safaris in the Versus TV episode mentioned in the canned lion hunting thread- so i don't think i will feel too sorry for her. the narrator call her a beauty queen and advocate for hunting- i guess he failed to mention the fact that she is married to a crook who has left a lot of other hunters hung out to dry.

Well, I'm pretty hard assed but unless she knowingly stole some of the allegedly misappropriated funds then I still feel sorry for her and her kids and for all I know her family may be billionaires.

quote:

Originally posted by Gatogordo:
Well, I'm pretty hard assed but unless she knowingly stole some of the allegedly misappropriated funds then I still feel sorry for her and her kids and for all I know her family may be billionaires.

she is a principal in the company and represented herself as such at their both at the SCI convention. do you really think she didn't know what her husband was doing? feel sorry for someone that deserves it.

Well, I dunno what she knew, do you?

Does you wife know everything you do in your daily activities?

In the meanwhile, I'll feel sorry for who I want to, and that includes you.

Is this the lady, her husband and kids? Did they have a booth in Dallas? If so, how did I miss that?

Yes.

As mentioned earlier by Aaron, the consultants have been in the business a while. Looks like all of them have jumped ship. Here's a link.

www.theglobalhuntingnetwork.com IIRC, Cy and Olivia divorced but it looks like they are working together. Russell, Cy and Olivia all worked at Cabelas at one time.

Last year my hunting budy & I were thinking about going to NZ for a few weeks. 1 of my drinking buddies is a gun writer who put me in touch with San Miguel and Cy Angelloz. I talked with him several times and was sent a booklet that says "we have helped over 14,000 clients travel to 47 countries..."their booklet is 1st class, I would guess that they cost $10.00 each. The people who actually "ran" the operation were stolen from Cabelas.

I'll call my friend & see what he can find out.

Cy and Russell are "Ron the Guide" alumni. He's trained a bunch of em over the years. Ya can't count em all on your fingers and toes!
Rich Elliott

quote:

Originally posted by Gatogordo:
Well, I dunno what she knew, do you?

Does you wife know everything you do in your daily activities?

In the meanwhile, I'll feel sorry for who I want to, and that includes you.

let me see if i have this right. the 2 principals in San Miguel fold up shop and leave lots of folks high and dry- then go to work at a different company and go about business as usual. and you feel sorry for her and me?? i feel sorry for the people they cheated!!

I talked to them back in 2003 about a whitetail hunt in Mexico they were advertising. They were already sold out of that hunt, but kept on calling me trying to sell me on a hunt in Texas in which I had no interest. They were definately the pushiest people I have dealt with in the hunting industry.

Hasn't the wife posted here on AR somewhere previously?

quote:

Originally posted by Mike O':
Hasn't the wife posted here on AR somewhere previously?

yes

Guess this begs the question of what is the purpose of a booking agent, albeit indirectly.

If I use an agent and the guide/outfitter/PH declares bankruptcy or otherwise, I expect the agent to give me my money back. Or, if I have a hunt that was otherwise as promised, it is up to the booking agent to make it right, either monetarily or otherwise.

Agents aren't relied on for nothing, both from the client and outfitter's point of view. For the outfitter, the agent deals with the public and probably books hunts that the outfitter doesn't have the time, expertise or capacity to do. From a client's point of view, we trust agents to have our back (and money) should something go wrong. Hunting is hunting, but when an agent sells something for the outfitter and goods aren't as promised, someone owes the client.

I've never had a bad experience one way or the other...

quote:

Originally posted by Rich Elliott:
Cy and Russell are "Ron the Guide" alumni. He's trained a bunch of em over the years. Ya can't count em all on your fingers and toes!
Rich Elliott

You are right about Ron training alot of guys, and some are very good,and some not so good!
I did work with Cy for a very short time ,when I first started guiding in Texas back in the 80's at another if you make it here boy, you will do well in the hunting biz place . I didn't know him well as he worked in the San Antonio booking office and I on the ranch itself. Cy went from 777 Ranch to Ron, then Cabela's. Through the yrs I have heard pro's and con's about him.