Feds charge eBay over employees who sent live spiders and cockroaches to couple; company to pay $3M
Online retailer eBay has agreed to pay a $3 million fine to resolve criminal charges over employees who harassed a Massachusetts couple by sending live spiders, cockroaches and other disturbing items to their home
BOSTON — Online retailer eBay Inc. will pay a $3 million fine to resolve criminal charges over a harassment campaign waged by employees who sent live spiders, cockroaches and other disturbing items to the home of a Massachusetts couple, according to court papers filed Thursday.
The Justice Department charged eBay with stalking, witness tampering and obstruction of justice more than three years after the employees were prosecuted in the extensive scheme to intimidate David and Ina Steiner. The couple produced an online newsletter called EcommerceBytes that upset eBay executives with its coverage.
California-headquartered eBay accepted responsibility for the employees' actions and entered into a deferred prosecution agreement that could result in the charges against the company being dismissed if it complies with certain conditions, according to the U.S. attorney's office in Massachusetts.
“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,” acting Massachusetts U.S. Attorney Josh Levy said in an emailed statement.
The deferred prosecution agreement calls for an independent monitor to oversee the company for three years to ensure its compliance with the terms and federal law. The $3 million criminal penalty was the maximum possible fine under the charges.
Ebay CEO Jamie Iannone called the company's conduct in 2019
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