In 2021, the State Police received information that SIA “Ceļojumzinis” signed contracts with clients for the provision of tourism services and received advance payments. In connection with the measures to combat Covid-19, the trips were canceled, but the money was not refunded to the customers.
On October 20, 2021, in the Criminal Police Department of the State Police’s Riga Region, a criminal proceeding was initiated under the first part of Article 177 of the Criminal Law, and on January 5, 2023, it was qualified according to the elements of the criminal offense of the third part of Article 179 of the Criminal Law, namely, for embezzlement in a large amount. For such a crime, the law provides for deprivation of liberty for a period of up to ten years, with or without confiscation of property, and with or without probation supervision for a period of up to three years.
In the criminal trial, 18 episodes of a criminal offense with 37 victims were investigated in connection with possible illegal actions on the part of an official of SIA “Ceļojumzinis”, misappropriating and wasting large amounts of money. During the investigation, it was found that the funds were wasted, including for personal needs. The suspect had not previously been seen by the police.
Having obtained a sufficient set of evidence in this voluminous criminal process, on October 22 of this year, the officials of the 3rd office, 2nd department of the Criminal Police Department of the State Police Riga Region sent the case to the Riga Eastern Prosecutor’s Office for the initiation of criminal prosecution against one person.
All victims have submitted applications for compensation for the damage caused in accordance with the law.
The State Police reminds that no person is considered guilty until his guilt in committing a criminal offense is proven in accordance with the procedures prescribed by law.
Interview between the Time.news Editor and Tourism Fraud Expert
Time.news Editor: Good day and thank you for joining us today. We’re delighted to have Dr. Anna Griba, an expert in tourism law and consumer protection. Anna, the case we’re discussing today involves SIA “Ceļojumzinis,” which faced serious allegations regarding mishandling advance payments for tourism services during the Covid-19 pandemic. Could you start by giving us a brief overview of what occurred?
Dr. Anna Griba: Thank you for having me! Yes, in 2021, many tourism operators were hit hard by the pandemic. SIA “Ceļojumzinis” signed contracts with clients for travel services and collected advance payments. However, when Covid-19 led to trip cancellations, the company failed to refund the customers. This prompted concerns about their business practices.
Time.news Editor: It’s alarming to think about customers being out of pocket during such a difficult time. What legal obligations do companies have when they cannot deliver services due to extraordinary circumstances like a pandemic?
Dr. Anna Griba: Great question. Legally, companies are often required to refund customers when they can’t fulfill a service contract, unless there are specific terms that allow them to retain the funds. In many jurisdictions, including Latvia, consumer protection laws mandate refunds when services aren’t rendered, particularly when cancellations are due to something outside the control of consumers, like Covid-19 restrictions.
Time.news Editor: So in this case, it seems there could have been a significant consumer rights violation. What measures were taken by the State Police when they got wind of the situation?
Dr. Anna Griba: On October 20, 2021, the State Police initiated a criminal proceeding under the assumption that fraud might have occurred. They began investigating the company’s dealings, particularly focusing on whether they mismanaged customer funds intentionally. Such investigations can involve a deep dive into company finances and communication with clients.
Time.news Editor: Investigations like this can be quite extensive. What kind of outcomes can we anticipate if the investigation concludes that “Ceļojumzinis” committed fraud?
Dr. Anna Griba: If fraud is established, the company could face criminal charges, which might include fines and other penalties. Furthermore, the affected customers may file civil lawsuits for the recovery of lost funds. In serious cases, the company could also be dissolved if found to be operating unlawfully.
Time.news Editor: It sounds like there could be serious repercussions not only for “Ceļojumzinis” but also a broader impact on the tourism industry. What advice would you give to consumers who are navigating similar situations in the current travel landscape?
Dr. Anna Griba: Consumers should always read the fine print of contracts and be wary of policies regarding cancellations and refunds. It’s also vital to use companies that are members of recognized tourism associations, as these organizations often provide a layer of protection and oversight. If issues arise, customers should document all communications and seek help from consumer protection agencies or legal advisors.
Time.news Editor: Thank you, Anna, for those insights. In a time when travel is recovering, it’s crucial for consumers to be informed and cautious. We appreciate you shedding light on this pressing issue, and we hope to see justice for the affected clients of “Ceļojumzinis.”
Dr. Anna Griba: Thank you for having me! It’s crucial to keep awareness high, and I hope for a resolution that prioritizes consumer rights and restores trust in the travel industry.
Time.news Editor: Indeed! Thank you for joining us, and we’ll be sure to keep our readers updated on this unfolding story.