eBay stalking scandal

EcommerceBytes is an online newsletter and e-commerce trade publication founded in 1999, four years after eBay was founded. Initially called AuctionBytes, the website offered advice to buyers in the early days of internet commerce. In the years after its founding, the website became a resource for sellers on a number of platforms, from Etsy to Amazon, a kind of trade publication for anyone whose business is selling items online. It is read primarily by sellers, but also by some corporate staff, including some who posted comments on their website.{{Cite news|last=Damiano|first=Mike|date=2 December 2021|title="Take Her Down": Inside eBay's Stalking Campaign against a Natick Couple|work=Boston Magazine|url=https://www.bostonmagazine.com/news/2021/12/02/ebay-ecommercebytes-stalking/|access-date=2021-12-28|archive-date=2021-12-28|archive-url=https://web.archive.org/web/20211228214914/https://www.bostonmagazine.com/news/2021/12/02/ebay-ecommercebytes-stalking/|url-status=live}} The website not only offers advice, but also critiques of the corporate and policy changes at eBay and other e-commerce platforms. For example, in April 2019, Ina Steiner reported there that eBay's then-CEO Devin Wenig was paid 152 times more than the typical eBay employee.

In January 2019, Elliott Management, a hedgefund, purchased a significant investment in eBay. They sent a letter to its board of directors requesting changes, such as replacing the CEO, saying that eBay "as a public-company investment has underperformed both its peers and the market for a prolonged period of time." This was interpreted as placing additional demands on eBay management to produce results, leading to an atmosphere of heightened stress throughout the company.{{cite news |title=Elliott Management Sends Letter to Board of Directors of eBay |url=https://www.businesswire.com/news/home/20190122005513/en/Elliott-Management-Sends-Letter-to-Board-of-Directors-of-eBay |accessdate=September 29, 2020 |publisher=BusinessWire |date=January 22, 2019 |archive-date=October 29, 2020 |archive-url=https://web.archive.org/web/20201029120323/https://www.businesswire.com/news/home/20190122005513/en/Elliott-Management-Sends-Letter-to-Board-of-Directors-of-eBay |url-status=live }}

Members of eBay's executive leadership had long been bothered by the couple's posts. Under pressure in early 2019 to enhance performance, the company felt a new sense of urgency. For example, in April 2019, eBay’s chief communications officer at the time, Steve Wymer, sent Wenig a post about how outsized Wenig's compensation was compared to typical employees, adding "we are going to crush this lady." One month later Wenig texted Wymer "Take her down." Wymer allegedly took the concerns to the head of eBay's security division, Jim Baugh, whose team began harassing the Steiners at home and online. Wymer texted Baugh that Ina Steiner was a "biased troll who needs to be BURNED DOWN"; that he wanted "to see ashes"; and that Baugh should do "whatever it takes."{{Cite web |title=SanJoseSpotlight |date=5 December 2022 |url=https://sanjosespotlight.com/silicon-valley-elite-defend-nonprofit-ceo-with-dark-past/ |url-status=live |access-date=2023-02-23 |archive-date=2023-02-23 |archive-url=https://web.archive.org/web/20230223223459/https://sanjosespotlight.com/silicon-valley-elite-defend-nonprofit-ceo-with-dark-past/ }}{{Cite web |last=Matuson |first=Roberta |date=29 September 2020 |title=Creating A Corporate Culture Of Crime And Espionage |url=https://www.forbes.com/sites/robertamatuson/2020/09/29/creating-a-corporate-culture-of-crime-and-espionage/?sh=2676c5496432 |url-status=live |archive-url=https://web.archive.org/web/20230223223459/https://www.forbes.com/sites/robertamatuson/2020/09/29/creating-a-corporate-culture-of-crime-and-espionage/?sh=2676c5496432 |archive-date=2023-02-23 |access-date=2023-02-23 |website=Forbes}}

The Steiners were harassed and threatened both online and physically in their home by deliveries of such things as a bloody pig mask, live cockroaches and spiders, a fetal pig, a funeral wreath, and large orders of pizza. Pornographic magazines with David Steiner’s name on them were sent to a neighbor’s house.

Employees flew from California to Boston so they could vandalize the couple's Natick, Massachusetts home as well as stalk their personal vehicle. Plans were even made to break into the couple's garage and place a GPS tracker on their car.

The Steiners were left unable to leave the house; Ina would lie down in the backseat of their car to avoid knowing who was watching. Baugh would show subversive movies to staff and promoted an environment of fear.{{Cite web |last=Balaga |first=Marta |date=28 February 2025 |title=Jenny Carchman Explores ‘Very Crazy Story’ of eBay Harassment Campaign in Fremantle’s ‘Whatever It Takes: Inside the eBay Scandal,’ Debuts Teaser (EXCLUSIVE) |url=https://variety.com/2025/film/global/whatever-it-takes-ebay-fremantle-jenny-carchman-1236323423/ |access-date=29 June 2025 |website=Variety}}

EcommerceBytes was not the only source of criticism; Wenig was also concerned about an anonymous persona named Fidomaster (also known as Dan Davis and unsuckEBAY) who frequently commented about eBay on Twitter, EcommerceBytes, and other online forums.{{Cite web |date=28 February 2023 |title=Inside The eBay Cyberstalking Scandal: Battle For Justice Rages On |url=https://www.valueaddedresource.net/ebay-cyberstalking-scandal-fight-for-justice-rages-on/ |url-status=live |archive-url=https://web.archive.org/web/20230701154122/https://www.valueaddedresource.net/ebay-cyberstalking-scandal-fight-for-justice-rages-on/ |archive-date=1 July 2023 |website=Value Added Resource}}

The stalking and harassment campaign was designed to intimidate EcommerceBytes into changing their coverage of eBay, culminating in the "White Knight Strategy" which enlisted Brian Gilbert to pretend to come to the Steiners' aid in his official eBay capacity as an attempt to win goodwill and gain their help in unmasking the person behind the Fidomaster/unsuckEBAY account. {{Cite web |date=27 March 2023 |title=eBay Cyberstalking: A Threat To Free Speech & First Amendment Values |url=https://www.valueaddedresource.net/ebay-cyberstalking-threat-to-free-speech-first-amendment-values/ |url-status=live |archive-url=https://web.archive.org/web/20230327235321/https://www.valueaddedresource.net/ebay-cyberstalking-threat-to-free-speech-first-amendment-values/ |archive-date=27 March 2023 |website=Value Added Resource}}

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| quote = "This was a determined, systematic effort by senior employees of a major company to destroy the lives of a couple in Natick all because they published content that company executives didn’t like. For a while they succeeded, psychologically devastating these victims for weeks as they desperately tried to figure out what was going on and stop it."

| source = Massachusetts US attorney Andrew Lelling

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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 former employee was charged in July.{{cite news |last=Herrera |first=Sebastian |date=2020-06-15 |title=Justice Department Charges Former eBay Staff With 'Cyberstalking Campaign' |url=https://www.wsj.com/articles/justice-department-charges-former-ebay-employees-with-cyberstalking-campaign-11592241507 |work=The Wall Street Journal |access-date=2020-09-27 |archive-date=2020-09-20 |archive-url=https://web.archive.org/web/20200920001959/https://www.wsj.com/articles/justice-department-charges-former-ebay-employees-with-cyberstalking-campaign-11592241507 |url-status=live }} eBay itself was later charged.

• James Baugh, eBay's Senior Director of Safety & Security pleaded guilty in April 2022. and was sentenced to 57 months in prison.{{Cite web |date=October 11, 2022 |title=Two Former eBay Employees Sentenced for Aggressive Cyberstalking Campaign |url=https://www.justice.gov/usao-ma/pr/two-former-ebay-employees-sentenced-aggressive-cyberstalking-campaign#:~:text=On%20Sept.,Also%20on%20Sept. |url-status=live |access-date=February 24, 2023 |archive-date=February 24, 2023 |archive-url=https://web.archive.org/web/20230224004355/https://www.justice.gov/usao-ma/pr/two-former-ebay-employees-sentenced-aggressive-cyberstalking-campaign#:~:text=On%20Sept.,Also%20on%20Sept. }}
• David Harville, eBay's former Director of Global Resiliency, pleaded guilty to his participation in the harassment in May 2022 and was sentenced to 24 months in prison.
• Stephanie Popp, eBay's Senior Manager of Global Intelligence pleaded guilty in October 2020.{{Cite press release|title=Two Former Ebay Employees Plead Guilty to Aggressive Cyberstalking Campaign Targeting Natick Couple|publisher=U.S. Department of Justice, U.S. Attorney’s Office, District of Massachusetts|date=2020-10-08|url=https://www.justice.gov/usao-ma/pr/two-former-ebay-employees-plead-guilty-aggressive-cyberstalking-campaign-targeting-natick|access-date=2021-12-28|archive-date=2021-12-28|archive-url=https://web.archive.org/web/20211228222957/https://www.justice.gov/usao-ma/pr/two-former-ebay-employees-plead-guilty-aggressive-cyberstalking-campaign-targeting-natick|url-status=live}} and was sentenced to 13 months in prison.
• Stephanie Stockwell, eBay's Global Intelligence Center (GIC) manager pleaded guilty in October 2020{{Cite press release|title=Two Former eBay Employees Plead Guilty to Aggressive Cyberstalking Campaign Targeting Natick Couple|url=https://www.justice.gov/usao-ma/pr/two-former-ebay-employees-plead-guilty-aggressive-cyberstalking-campaign-targeting-nati-0|date=29 October 2020|publisher=U.S. Department of Justice, U.S. Attorney’s Office, District of Massachusetts|access-date=28 December 2021|archive-date=28 December 2021|archive-url=https://web.archive.org/web/20211228223008/https://www.justice.gov/usao-ma/pr/two-former-ebay-employees-plead-guilty-aggressive-cyberstalking-campaign-targeting-nati-0|url-status=live}} and was sentenced to 24 months of probation.
• Veronica Zea who served eBay as an independent contractor working as an intelligence analyst in the GIC, pleaded guilty in October 2020 and was sentenced two years probation including one year of home confinement.{{Cite web |date=2022-11-03 |title=District of Massachusetts {{!}} Former eBay Employee Sentenced for Aggressive Cyberstalking Campaign {{!}} United States Department of Justice |url=https://www.justice.gov/usao-ma/pr/former-ebay-employee-sentenced-aggressive-cyberstalking-campaign |access-date=2025-02-07 |website=www.justice.gov |language=en}}
• Brian Gilbert, a former police captain, and Senior Manager of Special Operations for eBay's Global Security Team pleaded guilty in October 2020 and was sentenced to one year of probation plus time served.{{Cite web |date=2024-07-18 |title=District of Massachusetts {{!}} Final Defendant in eBay Cyberstalking Case Sentenced {{!}} United States Department of Justice |url=https://www.justice.gov/usao-ma/pr/final-defendant-ebay-cyberstalking-case-sentenced |access-date=2025-02-07 |website=www.justice.gov |language=en}}
• Philip Cooke, a former police captain, and supervisor of eBay security operations,{{cite news |date=July 7, 2020 |title=Former eBay Staffer & Santa Clara Police Captain Charged With Harassing Newsletter Editor |work=CBS SF Bay Area |url=https://sanfrancisco.cbslocal.com/2020/07/07/ebay-newsletter-harassment-campaign-7th-employee-former-santa-clara-pd-charged/ |url-status=live |accessdate=September 29, 2020 |archive-url=https://web.archive.org/web/20200927030737/https://sanfrancisco.cbslocal.com/2020/07/07/ebay-newsletter-harassment-campaign-7th-employee-former-santa-clara-pd-charged/ |archive-date=September 27, 2020}} pleaded guilty in October 2020 and was sentenced to 18 months in federal prison and 3 years of supervised release including one year of home confinement.{{cite web | url=https://www.justice.gov/usao-ma/pr/former-ebay-employee-sentenced-role-aggressive-cyberstalking-campaign | title=Former eBay Employee Sentenced for Role in Aggressive Cyberstalking Campaign | date=27 July 2021 | access-date=3 August 2021 | archive-date=3 August 2021 | archive-url=https://web.archive.org/web/20210803171304/https://www.justice.gov/usao-ma/pr/former-ebay-employee-sentenced-role-aggressive-cyberstalking-campaign | url-status=live }}
• eBay agreed to pay a $3 million criminal penalty as part of a deferred prosecution agreement related to six criminal charges in the matter and were further required to retain an independent 'compliance monitor' for 3 years whilst making extensive enhancements to its own compliance policies. {{Cite web |date=2024-01-11 |title=District of Massachusetts {{!}} eBay Inc. to Pay $3 Million in Connection with Corporate Cyberstalking Campaign Targeting Massachusetts Couple {{!}} United States Department of Justice |url=https://www.justice.gov/usao-ma/pr/ebay-inc-pay-3-million-connection-corporate-cyberstalking-campaign-targeting |access-date=2025-02-07 |website=www.justice.gov |language=en}}{{cite news | title=Justice Department charges eBay over employees who sent live spiders and cockroaches to Natick couple; company to pay $3 million | date=January 11, 2014 | publisher=The Boston Globe | url=https://www.bostonglobe.com/2024/01/11/business/ebay-criminal-charges-natick-couple/ }}

In July 2021, Ina and David Steiner filed suit against eBay Inc.; former CEO Devin Wenig; former Chief Communications Officer Steve Wymer; the seven defendants in the criminal case; and Progressive F.O.R.C.E. Concepts (PFC), an independent security firm.{{Cite web |date=21 July 2021 |title=Lawsuit: eBay tried to "terrorize, stalk, and silence" couple that ran news site |url=https://arstechnica.com/tech-policy/2021/07/lawsuit-ebay-tried-to-terrorize-stalk-and-silence-couple-that-ran-news-site/ |url-status=live |access-date=1 March 2023 |website=ArsTechnica |archive-date=1 March 2023 |archive-url=https://web.archive.org/web/20230301213658/https://arstechnica.com/tech-policy/2021/07/lawsuit-ebay-tried-to-terrorize-stalk-and-silence-couple-that-ran-news-site/ }} eBay's former SVP Global Operations Wendy Jones and Progressive F.O.R.C.E Concepts' CEO Steve Krystek were also added to an amended version of the complaint on March 1, 2023.

The lawsuit claims that Wenig and Wymer "provided the other Defendants with carte blanche authority to terminate the reporting of the Steiners by whatever means necessary, with Defendant Wymer expressing '... I want to see ashes. As long as it takes. Whatever it takes.' Defendant Wymer promised the defendants he would 'embrace managing any bad fallout' if the plan went south, further directing, 'We need to STOP her.' The lawsuit further claims that "All of the horrific, vicious and sickening conduct that followed was committed by employees of eBay and PFC, while acting in the scope of their employment under the authority of and for the benefit of eBay and PFC."

The civil trial is scheduled to begin on March 3, 2025.{{cite web |title=eBay to pay $3 million after couple became the target of harassment, stalking |url=https://www.cbsnews.com/news/feds-charge-ebay-stalking-scandal-ina-david-steiner/ |publisher=CBS News |access-date=2 December 2024 |date=11 January 2024}}

After being contacted by law enforcement, eBay hired a law firm to investigate the harassment. The investigation concluded in September 2019, and all of the people charged with crimes plus the chief communications officer Steve Wymer were fired. The investigation found that neither Wenig nor Wymer "directed or knew that criminal acts would follow."{{Cite web |last=Morton |first=Liz |date=2022-12-07 |title=eBay Sued By Insurance In Cyberstalking Case, Exec Political Ties Revealed |url=https://www.valueaddedresource.net/ebay-insurance-cyberstalking-wymer-political-ties/ |url-status=live |archive-url=https://web.archive.org/web/20230301012243/https://www.valueaddedresource.net/ebay-insurance-cyberstalking-wymer-political-ties/ |archive-date=2023-03-01 |access-date=2023-03-01 |website=Value Added Resource |language=en}} Wymer was hired the next year as the head of a local branch of the Boys & Girls Clubs of America, a children's charity that knew about Wymer's involvement in the harassment scandal.{{cite web |date=10 September 2020 |title=Boys & Girls Clubs of Silicon Valley Names Steve Wymer President and Chief Executive Officer |url=https://www.bgclub.org/news/boys-girls-clubs-of-silicon-valley-names-steve-wymer-president-and-chief-executive-officer/ |website=Boys & Girls Clubs of Silicon Valley |access-date=28 March 2023 |archive-date=28 March 2023 |archive-url=https://web.archive.org/web/20230328010645/https://www.bgclub.org/news/boys-girls-clubs-of-silicon-valley-names-steve-wymer-president-and-chief-executive-officer/ |url-status=dead }}{{cite web |last=Howey |first=Brian |last2=Nguyen |first2=Tran |date=4 January 2023 |title=Disgraced eBay exec wielded power at San Jose City Hall |url=https://sanjosespotlight.com/disgraced-ebay-exec-wielded-power-at-san-jose-city-hall/ |website=San Jose Spotlight}}

The CEO Wenig's messages were deemed "inappropriate" by eBay, but eBay's internal investigation concluded that the CEO did not know about the stalking and harassment activities. Wenig left eBay in September 2019, with a US$57 million severance package. After the harassment scandal became news, Wenig was re-elected to the board of General Motors.

{{reflist}}

• [https://www.ecommercebytes.com/ ecommercebytes.com]

Category:2019 scandals

Category:Corporate crime

Category:Corporate scandals

Category:EBay