A former Expedia Group employee who amassed 20 terabytes of illicit footage of women by hiding spy cameras throughout the company’s headquarters — including bathrooms — was sentenced to four years in prison Friday in King County Superior Court in Seattle. 

Marcelo Vargas-Fernandez, 44, pleaded guilty in December to 14 counts of first-degree voyeurism and two counts of violating a sexual assault protection order for contacting one of the victims in October 2025 in an attempt to convince her not to testify.

Before handing down the sentence, Superior Court Judge Janet Helson heard statements read on behalf of several victims, identified in court only by their initials, who described the lasting trauma and “shattered” sense of security caused by the invasion of their privacy.

“I will wonder for the rest of my life whether there is more footage of me somewhere,” said one of the victims in her statement. “The constant question, ‘am I being watched?’ is exhausting.”

Gary Ernsdorff, senior deputy prosecuting attorney, described the scope of the case as “staggering,” noting that investigators identified nearly 60 potential victims in the 20 terabytes of data seized from Vargas-Fernandez. Ernsdorff told the court that the defendant meticulously organized the illicit footage by name, description, and activity.

“We could spend, frankly, a career going through the evidence and parsing out and trying to identify more victims,” Ernsdorff said.

In addition to bathrooms, prosecutors said in court Friday that cameras were also found mounted under desks to record people sitting in chairs, hidden inside the door and dashboard of his vehicle to record passengers, and even installed inside the bathroom and living room of one victim’s private apartment.

Vargas-Fernandez sat in red prison garb, his hands clasped on a piece of paper on the table, at one point removing his glasses to wipe his eyes as one statement was read.

Later, addressing the court, Vargas-Fernandez apologized to the victims, his family, and his former employer, admitting that he “failed trust” and created “pain and fear.” He told the judge he should have asked for help to deal with depression and personal issues.

“This is my fault,” he added.

His attorney, Court Will, emphasized Vargas-Fernandez’s efforts toward rehabilitation over the past two years, noting that he has completed a psychosexual evaluation, attended weekly sex offender treatment, and installed accountability software on his devices.

“He’s not before the court to make any excuses whatsoever,” Will said. 

In addition to the prison term, Judge Helson sentenced Vargas-Fernandez to up to 36 months of community custody and issued no-contact orders to protect the victims.

“These are not victimless crimes,” Judge Helson told him. “These are crimes with real victims who experience serious consequences in their lives.” 

Expedia Group temporarily closed its Seattle headquarters for three days following the discovery to conduct security sweeps but found no additional devices at that time.

Class-action lawsuits have been filed over the case, including one against both Expedia Group and its security contractor, Securitas. The suits allege negligence, claiming that the security team failed to act on the initial report of hidden cameras in December 2023, allowing the recording to continue for weeks before police were finally notified in January.

“Expedia is committed to protecting the privacy, safety, and security of our employees and guests across all offices,” an Expedia spokesperson said in a statement today. “We fully cooperated with law enforcement throughout this investigation and are pleased that our support contributed to holding the individual accountable.”

The investigation by Seattle police began after hidden cameras were discovered under the sinks of single-occupancy, gender-neutral bathrooms at the company’s campus on the Seattle waterfront. According to court records, an employee first spotted a recording device taped under a sink on Dec. 4, 2023, and reported it to onsite security. However, the devices were not immediately identified as cameras or turned over to police at that time.

The cameras reappeared weeks later.  On Jan. 11, 2024, an employee discovered the devices again and alerted security, who then contacted Seattle police. Witnesses reported seeing Vargas-Fernandez acting suspiciously in the area while the restrooms were closed.

Following his identification as a suspect, Seattle police executed a search warrant at Vargas-Fernandez’s home in Lynnwood on Feb. 1, 2024. An electronics sniffing dog was used to sweep the apartment. The search recovered substantial evidence, including at least 33 spy cameras, 22 SD cards, and six hard drives.

Ernsdorff, the prosecuting attorney, said in court that investigators found no evidence the footage was uploaded or shared online, despite finding evidence that Vargas-Fernandez had visited websites featuring similar illicit content. However, he acknowledged that victims may never have complete certainty about whether their images were distributed.

A divided three-judge panel of the Ninth Circuit Court of Appeals ruled that the University of Washington violated a computer science professor’s First Amendment rights when it investigated and reprimanded him for posting a parody land acknowledgment in a syllabus.

The professor, Stuart Reges, has taught at UW’s Paul G. Allen School of Computer Science and Engineering since 2004. In January 2022, he included his own land acknowledgment in a syllabus for an introductory programming course, pushing back against the school’s recommendation that faculty include a statement recognizing Coast Salish peoples.

His version invoked philosopher John Locke’s labor theory of property to argue the opposite point — that indigenous peoples could claim “almost none” of the land occupied by UW.

The statement sparked student complaints, a public apology from the Allen School, a disciplinary investigation lasting more than a year, and a separate section of the course taught by another instructor. 

Reges was ultimately not formally sanctioned, but was warned that repeating the statement could lead to discipline — a threat the court said itself violated the First Amendment.

Represented by the Foundation for Individual Rights and Expression, Reges sued the UW in 2022. A district court sided with UW, but the Ninth Circuit reversed that decision last Friday, Dec. 19.

Writing for the majority, Judge Daniel Bress said student discomfort cannot justify retaliation against a professor’s speech on matters of public concern. 

Judge Sidney Thomas dissented, arguing that the disruption that Reges’ statement caused to Native students’ learning outweighed his First Amendment speech interests.

Potential next steps for the University of Washington could include asking for a rehearing from the full Ninth Circuit or an appeal to the U.S. Supreme Court. If the university does neither, the case returns to district court to determine remedies.

The UW said in a statement that it is weighing its options. “We maintain that we have a responsibility to protect our students and that the UW acted appropriately,” the UW statement said.

Rad Power Bikes filed for Chapter 11 bankruptcy protection even as the Seattle-based company said it’s working toward a sale to keep the popular electric bike brand alive.

In a bankruptcy petition, filed Monday in federal court in Spokane, the company reported total liabilities of nearly $73 million, more than double its assets of $32 million. The filing also revealed a steady drop in gross revenue — from $129.8 million in 2023 to $103.8 million in 2024, and $63.3 million so far this year.

The filing comes three weeks after the Consumer Product Safety Commission (CPSC) issued a warning to consumers to stop using some of the Seattle-based company’s bikes because of danger posed by their lithium-ion batteries.

It follows the revelation, in early November, that the once hard-charging startup was fighting for survival as it faced “significant financial challenges.”

A Rad spokesperson said in a statement provided to GeekWire on Tuesday that the company was navigating an extraordinary period of challenge and change.

“As we work to secure a sustainable future for the Rad brand, Rad has filed for Chapter 11 protection as part of a process to complete a sale of the company within the next 45–60 days,” the statement said. “This step allows us to keep operating in the ordinary course of business while we pursue the best possible outcome for the people who rely on Rad every day.”

Rad said its goal is to keep the company intact and preserve relationships it has built with riders, vendors, suppliers, and partners.

RELATED: The rise and fall of Rad Power Bikes: From breakout success to the brink of shutdown

Rad previously filed notice with the Washington state Employment Security Department in which it said the company could shut down as early as January, and that 64 jobs would be impacted.

The bankruptcy filing shows that the company remains primarily controlled by its founder, Mike Radenbaugh, who holds the largest individual stake, more than 41%.

Institutional investors hold significant minority positions, including VCVC V LLC (6.55%), an investment vehicle associated with Cercano Management, and Durable Capital Master Fund LP (5.79%). Co-founder Ty Collins retains a 4.23% stake.

The company’s largest unsecured debts include nearly $8.4 million owed to U.S. Customs and Border Protection for tariffs, and more than $8 million to overseas manufacturers. Insurance companies and individuals seeking to recover payouts related to Rad bikes are owed about $4.3 million, and two people are each owed $1 million for damages, likely from lawsuits.

Rad was conceived in 2007 by Radenbaugh and Collins, who met as students at Humboldt State University in Northern California and built their first e-bike together. After years of doing custom conversions of traditional bikes to electric, they launched their company as a direct-to-consumer brand in 2015.

Rad saw big demand amid the pandemic as more people bought e-bikes. Its sales and workforce surged and it raised more than $300 million from investors in 2021. The company was valued at $1.65 billion that year, according to PitchBook, making it one of a handful of “unicorn” startups in the Seattle region at the time.

Rad operates out of a headquarters and flagship retail location on NW 52nd Street in Seattle’s Ballard neighborhood.

The company is currently led by CEO Kathi Lentzsch, who previously ran Bartell Drugs as CEO before the company sold to Rite-Aid in 2020. She also led companies including Gump’s and Elephant Pharmacy, and held exec roles at Enesco, Pottery Barn and World Market.

Lentzsch replaced Phil Molyneux, the former Sony president who stepped down earlier this year after leading Rad for more than two years.

The CPSC’s Nov. 24 product safety warning, which listed a variety of Rad bikes and battery models, urged consumers to immediately remove and dispose of hazardous batteries that “can unexpectedly ignite and explode, posing a fire hazard to consumers, especially when the battery or the harness has been exposed to water and debris.”

Rad disputed the CPSC’s findings, saying at the time that the company “firmly stands behind our batteries and our reputation as leaders in the e-bike industry, and strongly disagrees with the CPSC’s characterization of certain Rad batteries as defective or unsafe.”

Rad said the significant cost of CPSC’s all-or-nothing recall demand would force Rad to shut down immediately with no way to support its riders or employees.

On Tuesday, Rad said it was “not giving up” and that it was “focused on doing everything we can to strengthen the future of the Rad brand.”