A travel agent allegedly gamed Delta Air Lines' frequent flyer program designed for businesses, fraudulently accruing and redeeming more than 42 million points for flights and other benefits, according to federal prosecutors.

Gennady Podolsky, 43, managing partner of Chicago-based Vega International Travel Services, was arraigned on charges of wire fraud in Atlanta last week after being indicted by a grand jury, the U.S. Attorney's Office for the Northern District of Georgia said in a news release Friday.

"The fraudulent accumulation of frequent flyer miles in the travel industry may seem like a victimless crime, however, large corporations stand to lose significant profits," Chris Hacker, special agent in charge of FBI's Atlanta office, said in a news release. "The FBI will do everything in its power to protect companies and to stop anyone who participates in this corrupt behavior."

Delta's corporate frequent flyer program, SkyBonus, lets businesses collect points when their employees travel. Those points can be redeemed for flights, upgrades and other perks.

Podolsky allegedly set up a SkyBonus account in the name of a genetic testing facility founded and run by relatives of Vega Travel's president, and linked tickets bought by the travel agency's clients to that account – even though they weren't employees and shouldn't have been able to earn points, the indictment states.

Between March 2014 and April 2015, Podolsky accrued and redeemed more than 42 million SkyBonus points for flight certificates valued at about $575,000, the indictment alleges. Prosecutors estimated Delta's loss at more than $1.75 million.

"We're happy to see any kind of fraud indicted and continue to work with the FBI and the U.S. Attorney's Office to make sure this case is prosecuted to its fullest extent," Delta said in an emailed statement.

Attorneys for Podolsky, who is a dual resident of the U.S. and Ukraine, denied that his actions had been fraudulent.

"Indeed, while the Government says Delta is a victim, the evidence at trial will show Delta actually netted millions of dollars of profits from its relationship with Mr. Podolsky," his attorneys said in a statement.

Podolsky pleaded not guilty last week in Atlanta and was released to his residence in Chicago, according to court records.

Vega Travel did not immediately respond to requests for comment.

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