BOSTON (AP) — eBay Inc., an online retailer, has agreed to pay a $3 million fine to settle criminal charges related to a harassment campaign carried out by its own employees. The employees sent live spiders, cockroaches, and other disturbing items to the home of a Massachusetts couple, as revealed in court documents filed on Thursday.
The US Justice Department has accused eBay of stalking, witness tampering, and obstruction of justice. The employees involved in the scheme to intimidate David and Ina Steiner, who run the online newsletter EcommerceBytes, have already been prosecuted. The newsletter had drawn the ire of eBay executives due to its coverage.
Under a deferred prosecution agreement, eBay could have the charges against it dismissed if it adheres to certain conditions, according to the US attorney’s office in Massachusetts. Acting Massachusetts US Attorney Josh Levy condemned eBay’s conduct, calling it “absolutely horrific, criminal conduct” that caused immense suffering to the victims and aimed to silence their reporting and protect the eBay brand.
eBay has not yet commented on the matter in response to an email from The Associated Press.
The Steiners, the publishers and editors of the newsletter, have also filed a federal lawsuit against eBay, detailing the cyberstalking and unsettling deliveries of anonymous packages that disrupted their lives. In addition to the live spiders and cockroaches, the couple received a funeral wreath, a bloody pig mask, and a book on surviving the loss of a spouse. Their home address was also posted online with invitations for strangers to attend yard sales and parties.
The harassment against the Steiners began in 2019 after Ina Steiner wrote an article about a lawsuit filed by eBay against Amazon, accusing them of stealing its sellers. eBay’s then-CEO, Devin Wenig, sent a message to another executive shortly after the article was published, suggesting taking action against Ina Steiner. James Baugh, eBay’s senior director of safety and security, called Ina Steiner a “biased troll who needs to get BURNED DOWN.” Baugh was one of seven former eBay employees who pleaded guilty in the case. He was sentenced to nearly five years in prison, while another executive, David Harville, received a two-year sentence.
Devin Wenig, who stepped down as CEO in 2019, was not charged criminally and has denied any knowledge of the harassment campaign or instructing anyone to engage in illegal activities. In the civil lawsuit, his attorneys argued that his comment about “taking her down” was taken out of context and referred to lawful action rather than criminal acts.
According to prosecutors, Baugh, whom they described as the mastermind of the scheme, even recruited Harville to spy on the Steiners in Boston. The plan involved installing a GPS tracker on their car, but they were unable to gain access to their garage. Harville then purchased tools to break in. Harville’s attorneys maintain that he had no involvement in or knowledge of the threatening messages or deliveries sent by his colleagues. Baugh’s lawyers claimed that their client faced constant pressure from Wenig and other executives to take action against the Steiners. They alleged that Baugh was eventually pushed out by the company to protect its top executives from prosecution.
In conclusion, eBay has agreed to pay a $3 million fine to resolve criminal charges stemming from a campaign of harassment carried out by its employees. The company’s actions targeted a Massachusetts couple who ran an online newsletter critical of eBay. The employees involved have been prosecuted, and eBay could see the charges against it dismissed if it meets certain conditions. The Steiners have also filed a lawsuit against eBay, detailing the cyberstalking and unsettling deliveries they experienced. eBay’s former CEO, Devin Wenig, denied any knowledge of the harassment campaign.