The eBay Stalking Scandal: A Campaign of Harassment

Introduction

In 2019, a series of unsettling events unfolded that would later be known as the eBay stalking scandal. This chilling campaign of harassment targeted two e-commerce bloggers, Ina and David Steiner, whose website, EcommerceBytes, frequently critiqued eBay's corporate policies. What started as online commentary spiraled into a nightmare orchestrated by eBay employees, including senior members of the corporate security team. Though seven employees were convicted, questions remain about the involvement of two senior executives who were not charged.

The Background

The Birth of EcommerceBytes

EcommerceBytes, originally AuctionBytes, was born in 1999, a mere four years after eBay's inception. It quickly became a trusted resource for e-commerce sellers, offering advice and industry news. The site, read by sellers and corporate staff alike, was not shy about critiquing corporate practices. One such critique in April 2019 highlighted that eBay's then-CEO, Devin Wenig, earned 152 times more than a typical eBay employee.

Investor Pressure

In January 2019, Elliott Management, a hedge fund, acquired a significant stake in eBay. Their letter to eBay's board demanded changes, including the replacement of the CEO, citing the company's prolonged underperformance compared to its peers. This demand intensified the pressure on eBay's leadership to deliver results, setting the stage for the subsequent scandal.

Stalking and Harassment

Escalating Tensions

eBay's leadership had long been irked by the Steiners' posts. Under the new pressure to improve performance, Steve Wymer, eBay's chief communications officer, shared a post about Wenig’s excessive compensation with the ominous comment, "we are going to crush this lady." A month later, Wenig texted Wymer, "Take her down."

The Campaign Unfolds

Wymer communicated these concerns to Jim Baugh, head of eBay's security division. Baugh and his team began a relentless campaign of harassment against the Steiners. This campaign included sending grotesque items to the Steiners' home in Natick, Massachusetts. These deliveries included a bloody pig mask, live cockroaches, spiders, a funeral wreath, and unwanted pizzas. Pornographic magazines addressed to David Steiner were sent to a neighbor’s house.

Employees were dispatched from California to Boston to vandalize the Steiners' home and stalk their vehicle. Plans to break into their garage and plant a GPS tracker on their car were also made. The campaign aimed to intimidate EcommerceBytes into altering their coverage of eBay. The "White Knight Strategy" involved Brian Gilbert, who pretended to assist the Steiners in his official capacity to gain their trust and uncover the identity behind an anonymous critical account.

Criminal Charges

Legal Repercussions

In June 2020, the U.S. Department of Justice charged six former eBay employees and contractors with conspiracy to commit cyberstalking and conspiracy to tamper with witnesses. A seventh employee was charged in July. The former head of eBay's Safety & Security, James Baugh, pleaded guilty and received a 57-month prison sentence. David Harville, the former Director of Global Resiliency, also pleaded guilty and was sentenced to 24 months. Other employees received sentences ranging from probation to prison time.

eBay itself faced charges and agreed to pay a $3 million penalty as part of a deferred prosecution agreement related to six criminal charges.

The Civil Lawsuit

Seeking Justice

In July 2021, the Steiners filed a lawsuit against eBay Inc., former CEO Devin Wenig, former Chief Communications Officer Steve Wymer, the seven defendants from the criminal case, and Progressive F.O.R.C.E. Concepts (PFC), a security firm. The lawsuit alleged that Wenig and Wymer gave "carte blanche authority" to end the Steiners' reporting by any means necessary. The civil trial is scheduled for March 2025.

Internal Corporate Investigation

eBay’s Response

Prompted by law enforcement, eBay initiated an internal investigation led by a law firm. Concluding in September 2019, the investigation resulted in the firing of those involved, including Steve Wymer. It found no direct orders from Wenig or Wymer for criminal acts, though Wenig's messages were deemed inappropriate. Wenig left eBay in September 2019 with a $57 million severance package and was re-elected to the board of General Motors.

Media Coverage and Public Reaction

The 60 Minutes Revelation

In 2023, CBS News' "60 Minutes" profiled the scandal, highlighting the terror experienced by the Steiners. David Steiner recounted receiving a book about surviving a spouse's death, followed by a funeral wreath, interpreting them as death threats. Rosemary Scapicchio, the Steiners' attorney, accused Wymer of deleting incriminating texts, characterizing it as obstruction of justice.

Wymer defended himself, claiming his texts were mischaracterized and that he was unaware of the employees' actions. Wenig expressed being appalled by the events and insisted he would have intervened if aware.

Conclusion

The eBay stalking scandal remains a sobering example of how corporate power can be abused. Though justice has been served to some extent, the full extent of accountability for those at the top remains a subject of ongoing legal and public scrutiny. The Steiners' ordeal underscores the vulnerability of individuals in the face of corporate might, raising critical questions about the limits of executive influence and the importance of safeguarding journalistic freedom.

Sources

For more detailed information, please visit the original Wikipedia article.