Deferred Prosecution Agreement Resolves Stalking, Witness Tampering, and Obstruction of Justice Charges
Online retailer eBay Inc. has agreed to pay a $3 million fine to settle criminal charges related to a harassment campaign orchestrated by its employees against a Massachusetts couple. The Justice Department filed charges against eBay more than three years after employees engaged in a scheme to intimidate David and Ina Steiner, who produced an online newsletter called EcommerceBytes that covered eBay executives critically.
The charges against eBay include stalking, witness tampering, and obstruction of justice. The harassment campaign involved sending live spiders, cockroaches, and other disturbing items to the Steiners’ home. eBay has accepted responsibility for the employees’ actions and entered into a deferred prosecution agreement. Under this agreement, the charges against the company may be dismissed if it complies with specified conditions.
As part of the deferred prosecution agreement, eBay will be subject to oversight by an independent monitor for three years to ensure compliance with terms and federal law. The $3 million criminal penalty represents the maximum fine possible under the charges.
eBay’s CEO, Jamie Iannone, acknowledged the company’s wrongful conduct in 2019, describing it as “wrong and reprehensible.” He highlighted changes in leadership and strengthened policies, procedures, controls, and training since the incident.
The Steiners have also filed a federal lawsuit against eBay, detailing the cyberstalking and disturbing deliveries that disrupted their lives. In addition to live spiders and cockroaches, the couple received items such as a funeral wreath, a bloody pig mask, and a book about surviving the loss of a spouse.
The harassment campaign began after Ina Steiner wrote a story about a lawsuit between eBay and Amazon in 2019. The then-CEO of eBay, Devin Wenig, allegedly sent a message indicating a desire to take her down. Seven former eBay employees, including Wenig, pleaded guilty to charges in the case.
The deferred prosecution agreement and fine highlight the legal consequences companies may face for the actions of their employees, particularly in cases involving criminal activities. The independent monitor’s oversight aims to ensure eBay’s adherence to legal requirements and ethical standards.