Seattle-based travel giant Expedia Group Inc. (Nasdaq: EXPE) closed its headquarters from Saturday to Monday following the discovery of hidden cameras in two bathrooms and the arrest of a former employee on four counts of voyeurism.
An Expedia spokesperson on Tuesday said in an email the temporary closure was "to install additional security enhancements and accelerate our detection capabilities." The spokesperson added that the Seattle Police Department has been on the campus for additional searches but didn't find more recording devices.
GeekWire first reported the temporary closure.
Marcelo Vargas-Fernandez, a 42-year-old Lynnwood resident, was arrested on Feb. 1 after police suspected he had placed hidden cameras under the sinks in the two bathrooms.
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"The defendant placed spy cameras specifically aimed at the toilet in all-gender single occupancy restrooms, allowing him to view the private use and genitalia of restroom users," Leesa Manion, the prosecuting attorney, wrote in a case summary filed Feb. 5 in King County Superior Court. "At the time of this filing, law enforcement has observed at least 10 distinct victims visible in the defendant’s illegal footage. It is reasonable to believe that several more victims have yet to be discovered."
A probable cause affidavit from SPD said an Expedia employee first discovered hidden cameras in two bathrooms on Dec. 4. The employee alerted Expedia's building security, contracted through Securitas. The cameras were gone the next day.
The employee who discovered the cameras assumed security had removed them, according to the affidavit, but later learned security had not, leaving the employee "upset and worried." Security personnel didn't remove the cameras because "they thought it was a music device or a battery backup for the soap dispensers."
The affidavit noted a different employee discovered hidden cameras again in the same bathrooms on Jan. 11. The employee told security, which alerted SPD, triggering a review of security footage outside the bathrooms. Employees said Vargas-Fernandez tried to return to the bathrooms twice after the cameras were discovered and the bathrooms were closed off. A search warrant for Vargas-Fernandez's Amazon order history revealed he had bought two spy cameras in October.
The affidavit notes Vargas-Fernandez admitted to using spy cameras to surveil his ex-wife in her own home while going through their divorce. Between his apartment and car, police found 33 spy cameras, 22 SD cards and individually packaged used women's underwear.
Vargas-Fernandez, who no longer works for Expedia, pleaded not guilty at his Thursday arraignment. His lawyer didn't respond last week to a request for comment.
Expedia says on its website that most employees are required to work from one of its offices at least 50% of the time. The company started bringing employees back to its new Interbay headquarters in April 2022, more than two years after the Covid-19 pandemic delayed the full opening of the 1 million-square-foot campus, which cost Expedia $900 million to complete.
Expedia offers travel search and booking through its main website, plus its other brands like Vrbo and Orbitz. The company had 17,100 employees at the end of last year. Expedia generated $12.8 billion in revenue in 2023, up from $11.7 billion in 2022. CEO Peter Kern, who has led the company since April 2020, is stepping down in May. Ariane Gorin, currently president of Expedia for Business, is replacing him.
