Feeds

eBay jewellery store fined $400,000 for shill bidding

eBay reports offender to authorities

New hybrid storage solutions

A jewellery company which allegedly bid on its own eBay auctions to "illegally drive up prices by as much as 20 per cent" will pay $400,000 (£204,000) in "restitution and penalties", Reuters reports.

The New York state attorney general's office said Ezra Dweck of EMH Group and his employees made over 232,000 bids on auctions in the company's Jewellery by Ezra eBay store. The store regularly held no-reserve auctions, but Dweck "ensured his employees knew of which auctions to bid at along with a predetermined price".

In around a year, these bids totalled some $5m, the attorney general's office claimed. Attorney general Andrew Cuomo said: "This scam highlights the growing vulnerability of online auction shoppers. Consumers should not have to surf with sharks."

Dweck and EMH deny the claims, and a lawyer for the company said it had agreed to cough up the cash "only to avoid an interminable, costly battle with the AG's office". He explained: "EMH and Mr Dweck did not intentionally encourage any fraudulent bidding. A buyback program, which was vetted by two attorneys, was created to give winning bidders an incentive to sell back to EMH certain items."

The attorney general's office was alerted to the alleged scam by eBay, which "helped in the investigation over several months". eBay spokeswoman Nichola Sharpe said: "We do not tolerate criminal activity and proactively assist law enforcement to prosecute any individual who may try to defraud our users."

Cuomo's office added that Dweck and EMH Group have also been "banned from the online auction industry for four years under the terms of the settlement agreed to by the parties". ®

Security for virtualized datacentres

More from The Register

next story
Italy's High Court orders HP to refund punter for putting Windows on PC
Top beaks slam bundled OS as 'commercial policy of forced distribution'
Net neutrality protestors slam the brakes on their OWN websites
Sites link up to protest slow lanes by bogging down pages
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Uber alles-holes, claims lawsuit: Taxi biz sued by blind passengers
Sueball claims blind passengers ditched, guide dogs abused
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
Heavy VPN users are probably pirates, says BBC
And ISPs should nab 'em on our behalf
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.