eBay will pay $3 million to settle criminal charges coming from several of its former workers delivering live spiders, cockroaches, and a fetal pig to a Massachusetts couple who wrote a newsletter critical of the corporation in 2019, according to officials.
The online auction giant was charged with two counts of stalking through interstate travel, two counts of stalking through electronic communications services, witness tampering, and obstruction of justice, according to a statement from the United States Attorney’s Office for the District of Massachusetts.
Prosecutors said eBay agreed to pay the penalty, which is the maximum fine authorized by law for the six felonies, as part of a deferred prosecution deal.
As per federal officials, the corporation must also employ an independent corporate compliance monitor for three years and make adjustments to its compliance program.
“Today’s settlement holds e-Bay criminally and financially responsible for emotionally, psychologically, and physically terrorizing the publishers of an online newsletter out of fear that bad publicity would adversely impact their Fortune 500 company,” said Jodi Cohen, special agent in charge of the FBI’s Boston Division.
EBay subjected the victims to “pure hell,” said Joshua S. Levy, acting US Attorney for the District of Massachusetts, in a statement.
“The company engaged in absolutely horrific, criminal conduct,” according to the complaint. “The company’s employees and contractors involved in this campaign subjected the victims to a terrifying campaign aimed at silencing their reporting and protecting the eBay brand,” Levy said.
eBay stated on its website on Thursday that it accepts “responsibility for the misconduct of its former employees.”
“The company’s conduct in 2019 was wrong and reprehensible,” stated CEO Jamie Iannone.”From the moment eBay first learned of the 2019 events, eBay cooperated fully and extensively with law enforcement authorities.”
“Since these events occurred, new leaders have joined the company, and eBay has strengthened its policies, procedures, controls, and training,” Iannone stated. eBay is still dedicated to sustaining high standards of ethics and conduct.”
In accordance with the statement, the corporation is also committed to making things right with the couple who were mistreated.
As part of the settlement with the federal government, eBay agreed that between August 5 to August 23, 2019, the victims, who lived in Natick, were targeted by eBay’s former senior director of safety and security and six other members of the team.
Prosecutors claimed that the intimidation campaign was intended to “change the content of the newsletter’s reporting.”
“The campaign included sending anonymous and disturbing deliveries to the victims’ home, including a book on surviving the death of a spouse, a bloody pig mask, a fetal pig and a funeral wreath and live insects,” the attorney general’s office stated.
Prosecutors stated that additional harassment included traveling to Natick to spy on the couple and putting a GPS monitoring device on their automobile.
Former members of eBay’s worldwide security staff were prosecuted in 2020. Prosecutors claimed the scheme to harass the couple resulted in the convictions of seven former workers and contractors. The sentences ranged from 57 months to 12 months in prison, with some people condemned to home confinement.