eBay, the e-commerce giant, has been ordered to pay a $3 million fine to settle criminal charges linked to a disturbing harassment campaign against a Massachusetts couple. The charges include stalking through interstate travel, stalking through electronic communications, witness tampering, and obstruction of justice. The couple was targeted due to their online newsletter's critical coverage of eBay in 2019.
The U.S. Department of Justice announced that eBay entered into a deferred prosecution agreement, admitting to its criminal conduct. In addition to the $3 million criminal penalty, eBay is required to retain an independent corporate compliance monitor for three years and make substantial improvements to its compliance program.
"eBay engaged in absolutely horrific, criminal conduct. The company's employees and contractors involved in this campaign put the victims through pure hell, in a petrifying campaign aimed at silencing their reporting and protecting the eBay brand," stated Acting U.S. Attorney Joshua S. Levy.
The victims, identified as Ina and David Steiner, co-founded EcommerceBytes, a website that reported on e-commerce companies, including eBay. The harassment campaign began after Ina wrote an article about eBay suing Amazon for stealing its sellers. Following this article, eBay's then-CEO, Devin Wenig, allegedly sent a message stating, "If we are ever going to take her down... now is the time." Jim Baugh, eBay's former Senior Director of Safety and Security, referred to Ina as a "biased troll who needs to get BURNED DOWN."
The harassment campaign against the Steiners involved disturbing deliveries to their home, including a book on surviving the death of a spouse, a bloody pig mask, a fetal pig, a funeral wreath, live spiders, and cockroaches. It also included private messages criticizing the newsletter's content, surveillance, and the installation of a GPS tracking device on their car. Craigslist posts inviting the public for sexual encounters at the couple's home were part of the harassment.
After the victims contacted local police, Baugh made false statements and deleted digital evidence related to the campaign. Baugh, described as the ringleader, was sentenced to 57 months in prison in September 2022, and other former eBay employees or contractors received sentences ranging from 12 to 18 months in prison.
In a statement, the Steiners emphasized the damaging impact of eBay's actions on them emotionally, psychologically, physically, reputationally, and financially. They also filed a civil lawsuit against eBay and its former employees.
eBay's current CEO, Jamie Iannone, expressed the company's responsibility for the misconduct of its former employees and its commitment to upholding high standards of conduct and ethics. "eBay remains committed to making things right with the Steiners," Iannone stated.
This settlement marks a significant development in a disturbing case of corporate harassment and misconduct, highlighting the legal consequences faced by a major company for its employees' criminal actions.
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