MPI looses over $390 million

Hey gang...
UAL has had a very tight lid put on this topic...
but somehow, through fuzzy math, bad executives, or just flat out stealing, it''s been reported that ULS (United Loyalty Services) has misappropriated over $390 million woth of cash and assets through a review of its books by an outside auditing department.
This kinda comes as a blow to ULS, considering it''s the only profitable division at UAL right now!
Does anyone know if the FBI/SEC/other gvt agencies are involved in the investigation yet???
-n
 

UAL777flyer

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Aug 20, 2002
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I'd be very careful about making such statements without backing it up with facts. The ramifications of what you posted would result in criminal and civil penalties. However, I'd also be curious where you got this information.

There has been much rumor and speculation at UA about UA hiding money and assets in ULS. However, nothing could be further from the truth. UAL files financial results with the SEC for the corporate entity as a whole, of which UA and ULS are part of. So hiding money or assets in ULS would be meaningless.
 

novaqt

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Aug 20, 2002
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How and where did you obtain this information? I haven't seen any articles regarding your post.
 

MrMarky

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[P]For the benefit of those of us who are not insiders, could we please cut the code? Please explain what MPI is -- it's in the title of the thread with no further reference to it. Also, I would be very interested in knowing what United Loyalty Services is and what they do. I'm not familiar with it.[/P]
[P]Thanks,[/P]
[P]MM
P]
 

UAL777flyer

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Aug 20, 2002
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MrMarky,

ULS is a subsidiary of UAL Corp that deals with strengthening the relationships we have with our customers. They handle many things, such as leasing aircraft and parts to other airlines and companies, certain Mileage Plus programs and other customer incentives like Cruise4Miles, United SilverWings Cruises, Mypoints.com, etc. They are headed by Scott Praven. However, I, too, am unfamiliar with what MPI stands for.
 

novaqt

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Aug 20, 2002
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MPI is an anachronymn for Mileage Plus, Inc. This is the group that maintains the mileage plus account balances and mails out the monthly statements together with any mileage plus promotions being offered. If you check out www.ual.com you can pretty much get an idea of all that Mileage Plus, Inc. handles.
 
OP
N

N297UX

Member
well a few sources (various) have all heard that there is an ongoing investigation and multi-level audit of all of MPI's books.... the initial audit found that over $300 million was missing, and the last number i heard from some people was it was closer to $390 million, but it's all being kept under wraps until they determine if it was a REAL accounting error or somehow the money was misappropriated...

edited to include:

I guess this has been going on since it was founded.... which is probably WHY UAL hasn't gone public with it... it's probably just been putting things in the wrong accounts in the books.

The reason they are doing this cautiously is that ULS takes money in from sources and they think that it hasn't been properly funneled to other divisions, which would also explain why ULS has such huge profit margins.....

time will tell.. this may blow up and become something huge, or just pass along like nothing happened at all...
 

N230UA

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Sep 24, 2002
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UAL777flyer: how could you not know what MPI stood for?

You must not be in marketing, I guess.

Regarding UAL Corp. subsidiaries, whatever happened to YellowJacket Corp. ie the subsidiary created to absorb US Airways?
 

UnitedChicago

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Aug 27, 2002
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www.usaviation.com
There are just way too many acronyms :)! Remember WILMA for Shuttle? For the life of me, I could never figure it out...what is it Window, Aisle, ??

As to ULS...I agree with UA777...you need to be quite careful in repeating rumors. Especially at a crucial time for UA. The only thing that would concern me is accounting at MyPoints prior to ULS acquiring them. There have been a lot of internet related firms with an ad revenue focus that have made errors in accounting.

Lets just hope there's nothing to this :).
 

UAL777flyer

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So shoot me! You're right, I'm not in marketing. I'm in Resource Planning. I knew what ULS was but honestly didn't know what MPI stood for.
 

novaqt

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Aug 20, 2002
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Ual777flyer:

Tsk, tsk, tsk!!! UAL has the No. 1 frequent flyer program in the airline business and you are not familiar with its name? Come out of your cubby hole, there's a whole new world out here besides resource planning. You guys/gals do a wonderful job at planning our route structure though. Mums the word here on....
 

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