The Eranos Foundation still makes no mention on its website of John van Praag’s convictions; instead, it highlights his former presidency of the Foundation.

John van Praag was convicted of aggravated mismanagement because of his management of the Eranos Foundation between 2005 and 2009, a period marked by personal expenses charged to the Foundation and promises of external funding that never materialized. The judgment of 27 February 2019 highlighted opaque real-estate transactions, including the controversial sale of Casa Shanti to himself, without a public auction, which eroded the institution’s assets.

Before devoting himself fully to the Eranos Foundation, van Praag had built a distinguished career in the international hotel industry. He served as President and CEO of InterContinental Hotels Group (IHG) in the late 1980s and early 1990s. This unusual combination of classical scholar and high-level executive defined his attempt to modernize the Ascona institution.

Here lies the problem: promises to build a five-star hotel in Ascona, and the question of which architect in politics and which contractor had a personal interest in seeing the project realized in Ascona. And why did the director of Banca dello Stato del Canton Ticino in Locarno go along with this alliance?

The trial was held at the Correzionali Court in Lugano (Judge Mauro Ermani) on 12 February 2019 against John van Praag, an 83-year-old Dutchman and former president of the Eranos Foundation from 2006 to 2008, who was charged with aggravated mismanagement (Article 159 of the Swiss Penal Code). Prosecutor Francesca Lanz requested a one-year prison sentence, suspended.

Main accusations

• Misappropriation of funds: CHF 290,000 paid in monthly instalments of CHF 10,000 to his company, Euro-Asian Finance Corporation (Hong Kong), managed by his wife and son, without a written mandate or explicit approval for fees.
• Context: During the post-bankruptcy relaunch (2004–2005), the federal supervisory authority reported irregularities in 2010 involving fraud and mismanagement.

Criminal investigations and alleged offenses

After his resignation in 2009, Ticino’s judiciary opened a formal investigation into van Praag’s conduct. According to reports from Ticinonews and local newspapers at the time:

• Alleged offenses: The investigations, led by then Attorney General John Noseda, focused on aggravated mismanagement and fraud.
• Complaints by the supervisory authority: In 2010, the supervisory authority for foundations filed two separate criminal complaints against former president van Praag and another board member from his period, Claudio Metzger, who was still a member of the Foundation Board.
• Urgent measures: On 3 January 2011, the supervisory office issued an emergency order to clarify the administrative situation left by the previous management.

Property and real-estate controversies

At the center of judicial and political attention, including several parliamentary questions to the Grand Council, were a number of suspicious transactions:

• Sale of “Casa Shanti”: It was confirmed that parcel 1640, which includes the historic Casa Shanti headquarters, was sold by the Foundation to John van Praag while he was still its president. The transaction took place with the approval of the board at the time, but it was heavily criticized because of the potential conflict of interest.
• Lakeside property: Despite his resignation and the investigations, van Praag retained private ownership of real estate located in the Eranos area, creating a stalemate with the Foundation’s new management.

The role of politics

The “vicissitudes” of the last 15 years of the Eranos Foundation were described in parliament as a period of deep crisis. In particular:

• Bank pressure: In a 2012 parliamentary interpellation, reference was made to the “strong embarrassment” of institutions when Banca dello Stato imposed the choice of van Praag as financier, based on promises of millions that never materialized.
• Public recovery: Only after van Praag’s departure and the intervention of representatives of the Canton and the Municipality of Ascona did the Foundation begin a path toward transparency and financial recovery.

Final outcome of the legal proceedings

Here are the concluding points of the entire affair:

• The criminal inquiry: The investigation opened by Attorney General John Noseda into possible aggravated mismanagement.
• Settlement and recovery: The real outcome was administrative and financial. After the complaints by the supervisory authority, the Foundation Board was completely renewed. The new leadership worked to isolate the van Praag management, described in parliament as a period of institutional “friction and embarrassment.”
• Real-estate situation: Despite the investigation, van Praag continued to own Casa Shanti privately, having acquired it during his presidency, albeit amid heavy controversy. This created a forced coexistence between the Foundation and the former president, who remained the owner of part of the historic site.
• Institutional consequence: For the Canton of Ticino and the Municipality of Ascona, the final outcome was the rescue of the Foundation through van Praag’s removal and the return to transparent academic and scientific management, ending the era of “promises of millions” that never came through.

In short: the criminal investigation acted as an accelerator in removing him from power.

The case against the former president of the Eranos Foundation ended with a monetary penalty.

According to the Corriere del Ticino, the sentence was handed down on 27 February 2019 by Judge Mauro Ermani. The key points of the ruling were:

• Charge: The main accusation was aggravated mismanagement.
• Punishment: John van Praag was sentenced to a monetary penalty of CHF 150,000, conditionally suspended for two years.
• Outcome regarding imprisonment: With this ruling, custodial punishment was averted, although it had been considered during the early stages of the investigation.

The investigation, which lasted several years and was led by Attorney General John Noseda, concerned events that took place between 2005 and 2009 and related to the management of funds and personal charges made to the Foundation during his presidency.