The Washington Post, LATimes and the New York Times announced Friday, February 19th a federal investigation into Hilton Hotel Corp's executives alleged criminal involvement in corporate espionage including, "charges of conspiracy, computer fraud, theft of trade secrets and interstate transportation of stolen goods". According to the LATimes, the complaint filed by Starwood alleges that "at least 44 Hilton executives, including Chief Executive Chris Nassetta, knowingly allowed stolen information to be used to develop a new brand."
With the recent devaluation of HHonors points combined with the criminal investigation, speculation about the credibility of Hilton and the efficacy of the HHonors program has increased redemption activity say some authors on FlyerTalk.
Stealing of insider information is a major problem and one that keeps folks in companies dealing with "competitive intelligence" very busy! I think poor Hilton is having one of those continuing years of bad years, much as Toyota is, where the cascading of bad news just keeps on coming.
Thanks for the posting!
"poor Hilton is having one of those continuing years of bad years"
Indeed. Interestingly, the Hotel World Network blogger, Jason Freed posted a link to the Fed's 14-page memorandum in his blog, 'Don't believe the Hype' saying,
"Don’t forget the grand jury could in the end determine there is not enough evidence to indict Hilton, although that usually is not the case. The feds don’t normally get involved unless there is significant evidence that charges could be brought."
In the Memorandum the government seeks a stay to discovery which continues federal investigation into Hilton's alleged criminal violations of the US Code Title 18 Unlawful Acts including "conspiracy", "fraud in connection with computers," "theft of trade secrets", and "interstate transportation of stolen goods."
Contrary to Freed's blog, this is not sensationalism and 'hype', but extremely serious. What's very surprising is the HWN reaction and the exclusion of the Starwood brand from the HWN poll, Which brand has the best loyalty/rewards program?