'Evajong CEO Sent to Prosecution Without Detention Over Accommodation Fee Fraud Controversy'

Fraud Damage Amounting to 715 Million Won

[Asia Economy Reporter Gong Byung-sun] The CEO of Eva Jong, a hotel reservation agency embroiled in a 'meoktwi' controversy for collecting accommodation fees from members but not remitting them to lodging facilities, has been handed over to the prosecution.

On the 13th, Seoul Namdaemun Police Station announced that on the 6th, Edmond de Fontaine, CEO of Eva Jong, was sent to the Seoul Central District Prosecutors' Office without detention on charges of fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Special Economic Crimes Act).

According to the police, the scale of the fraud damage is about 715 million won, with 125 cases of damage. The fraud charge under the Special Economic Crimes Act applies when the amount gained by fraud exceeds 500 million won, which results in aggravated punishment. The police had booked CEO Edmond on fraud charges under the Criminal Act on August 2, but it is known that the charges were changed during the investigation process.

A police official said, "Although CEO Edmond was sent on fraud charges under the Special Economic Crimes Act, there is a possibility that the charges may be changed during the prosecution's indictment process."

Eva Jong, operated by CEO Edmond, is an online hotel reservation agency operating on a private membership basis. It gained popularity among consumers by selling accommodation vouchers for luxury hotels and resorts at home and abroad at affordable prices. The number of members reached 550,000.

In July, Eva Jong was embroiled in a meoktwi controversy after consumers who booked accommodations protested that payments were not deposited to lodging facilities. Eva Jong stated that it was not a meoktwi case and that normal operations would resume soon, but it is currently not operating in fact, having closed its office located in Jung-gu, Seoul, and its website.

It is known that CEO Edmond was aware of Eva Jong's potential bankruptcy but operated the company by using prepaid accommodation fees in a Ponzi-like manner. Eva Jong had been in a state of capital erosion even before COVID-19. According to the Small and Medium Business Status Information System, Eva Jong's corporation, Bon Voyage, had sales of 960 million won in 2019 but an operating loss of 1.9 billion won. Additionally, there is evidence that CEO Edmond received members' hotel reservation payments into his personal account.

This content was produced with the assistance of AI translation services.