eBay fined $3mn after employees sent live cockroaches to couple
eBay will pay a $3 million fine to settle a harassment case filed by a Massachusetts couple. The victims, Ina and David Steiner, were targeted for publishing a newsletter criticizing eBay's business practices. Senior executives at eBay didn't like the tone and content of the newsletter. Hence, seven employees, including senior executives, sent the couple online threats, conducted surveillance at their home, and mailed them disturbing items like a bloody pig mask, live insects (spiders, cockroaches), and a funeral wreath.
Charges against eBay
In this shocking case from 2019, the US Department of Justice (DOJ) has charged eBay with six felony offenses, with Acting US Attorney Joshua S. Levy calling the company's actions "absolutely horrific, criminal." The charges against eBay consist of stalking via interstate travel and electronic communications services, witness tampering, and obstruction of justice. The victims claimed to have experienced "pure hell" as a result of the harassment campaign by eBay employees.
Prison sentence for executives
Back in 2022, former eBay Security Director James Baugh, and ex-Director of Global Resiliency, David Harville, were sentenced to prison. The other five employees were also charged. Now, as part of a deferred prosecution agreement, the DOJ has ordered eBay to employ a corporate compliance monitor for three years. eBay CEO Jamie Iannone said the company "takes responsibility for the misconduct of its former employees" and is dedicated to maintaining high ethical standards.
More trouble for eBay
eBay's legal issues have not ended here. The Steiners also filed a lawsuit against eBay and ex-CEO Devin Wenig in 2021, over allegations of intimidation, threats to kill, torture, stalking, and silencing them. In December 2022, a judge ruled that the couple's case could proceed.
