eBay to Pay $3 Million to Settle Criminal Probe into Employee Harassment Campaign
E-commerce giant eBay has agreed to a $3 million settlement to resolve a U.S. criminal probe surrounding a disturbing campaign orchestrated by several of its employees. The campaign targeted a Massachusetts couple, David and Ina Steiner, creators of the online newsletter EcommerceBytes, which had been critical of eBay’s practices.
In a deferred prosecution agreement, eBay accepted responsibility for the actions of seven former employees involved in the extensive harassment campaign that unfolded in 2019. This campaign included sending the Steiners various disturbing items, such as cockroaches, fly larvae, and a bloody Halloween pig mask.
Federal prosecutors in Boston charged eBay with six counts, including stalking, obstruction of justice, and witness tampering, characterizing the conduct as “absolutely horrific.” The $3 million fine represents the maximum penalty, reflecting the severity of the charges.
Acting U.S. Attorney Joshua Levy stated, “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.”
Under the terms of the settlement, eBay has agreed to retain an independent corporate compliance monitor for three years and implement changes to its compliance program. Charges will be dropped after three years if the company complies with the agreement.
CEO Jamie Iannone acknowledged the wrongdoing, calling the conduct in 2019 “wrong and reprehensible.” He expressed eBay’s commitment to upholding high standards of conduct and ethics, emphasizing the company’s dedication to rectifying the situation with the Steiners.
The prosecution revealed that senior executives at eBay perceived the Steiners’ newsletter as critical, leading former CEO Devin Wenig to text an executive in 2019 that it was time to “take her down,” referring to Ina Steiner. Wenig, who stepped down in September 2019, was not charged, and his spokesman maintained his lack of knowledge about the employees’ actions.
Jim Baugh, a former CIA employee and eBay’s then-senior director of safety and security, oversaw the harassment campaign. Baugh directed the Steiners received anonymous Twitter messages, disturbing emails, and unsettling deliveries to their home. In August 2019, Baugh and others attempted to surveil the Steiners in Natick and install a GPS tracking device on their car.
Baugh was sentenced to 57 months in prison in September 2022, while others involved in the case received punishments ranging from home confinement to two years in prison.
The Steiners’ lawsuit against eBay is still pending and set for trial in March 2025. In a statement, the couple expressed determination to protect First Amendment rights, stating, “We are determined to do whatever we possibly can to ensure that no corporation ever feels that the option exists for them to squash a person’s First Amendment rights.”
Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.