California-based online retailer eBay Inc. has agreed to pay a $3 million fine to resolve criminal charges related to a harassment campaign orchestrated by its employees against a Massachusetts couple, David and Ina Steiner. The Justice Department filed charges of stalking, witness tampering, and obstruction of justice more than three years after the employees were prosecuted for sending live spiders, cockroaches, and other disturbing items to the Steiners’ home.
The Steiners, publishers, and editors of the online newsletter EcommerceBytes, became targets after producing content that upset eBay executives. The couple’s coverage, including a story about eBay suing Amazon for allegedly poaching sellers, triggered a harassment campaign against them.
eBay’s Acceptance and Deferred Prosecution Agreement
eBay, headquartered in California, accepted responsibility for its employees’ actions and entered into a deferred prosecution agreement. This agreement, filed in court, could lead to the dismissal of charges against the company if it complies with specified conditions. The U.S. attorney’s office in Massachusetts emphasized the severity of eBay’s conduct, characterizing it as “absolutely horrific” and a “petrifying campaign.”
eBay’s CEO, Jamie Iannone, acknowledged the company’s wrongful conduct in 2019, describing it as “wrong and reprehensible.” He highlighted leadership changes since the events occurred and emphasized eBay’s efforts to strengthen policies, procedures, controls, and training. Iannone affirmed eBay’s commitment to upholding high standards of conduct and ethics.
Statement from eBay CEO Jamie Iannone:
“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.
David and Ina Steiner have filed a federal lawsuit against eBay, detailing the emotional, psychological, physical, reputational, and financial impact of the cyberstalking and disturbing deliveries. In a statement on their website, the Steiners expressed frustration that more executives were not charged and revealed the damaging and permanent impact eBay’s actions had on them.
Statement from the Steiners
“EBay’s actions had a damaging and permanent impact on us emotionally, psychologically, physically, reputationally, and financially.”
Details of the Harassment Campaign
The harassment campaign against the Steiners involved Twitter messages, strange emails from various groups, and anonymously sent packages. The disturbing deliveries included live spiders, cockroaches, a funeral wreath, a bloody pig mask, and a book about surviving the loss of a spouse. Additionally, their home address was posted online, inviting strangers to yard sales and parties.
Seven former eBay employees, including James Baugh, described as the mastermind, pleaded guilty to charges related to the harassment scheme. Baugh, sentenced to almost five years in prison in 2022, allegedly recruited another executive, David Harville, to spy on the Steiners. The trio attempted to install a GPS tracker on the Steiners’ car but faced challenges when the garage was locked.
Statement from eBay CEO Jamie Iannone “Since these events occurred, new leaders have joined the company, and eBay has strengthened its policies, procedures, controls, and training. eBay remains committed to upholding high standards of conduct and ethics and to making things right with the Steiners.”
Devin Wenig’s Role and Denial of Criminal Charges
eBay’s then-CEO, Devin Wenig, who stepped down in 2019, was not criminally charged. Despite a message he sent suggesting to “take her down,” Wenig denied any knowledge of the harassment campaign or instructing anyone to engage in illegal activities. In the civil case, his lawyers argued that the quote was taken out of context, and he referred to “lawful action” rather than criminal acts.
“EBay remains committed to upholding high standards of conduct and ethics and to making things right with the Steiners.”
Statement from eBay CEO Jamie Iannone
In their statement, the Steiners expressed disappointment over the lack of charges against more executives. They strongly urged federal prosecutors to pursue further indictments to deter corporate leaders from fostering cultures where stalking and harassment are tolerated or encouraged.
“We strongly pushed federal prosecutors for further indictments to deter corporate executives and board members from creating a culture where stalking and harassment is tolerated or encouraged.”
Statement from the Steiners
Conclusion: eBay’s Commitment to Change
The $3 million criminal penalty, the maximum possible fine under the charges, reflects the severity of eBay’s actions. The deferred prosecution agreement requires an independent monitor to oversee eBay for three years, ensuring compliance with specified terms and federal law. eBay’s commitment to change, as expressed by its CEO, signals an effort to rectify past wrongs and prevent such incidents in the future.
In summary, eBay’s settlement and acceptance of responsibility for the harassment campaign against the Steiners mark a significant chapter in the company’s history. The legal proceedings underscore the need for corporate accountability and the consequences of fostering a culture that tolerates harmful behavior. The Steiners’ lawsuit and the criminal charges against eBay employees serve as reminders of the impact of online harassment and the importance of taking swift and decisive action to address such misconduct.
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