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New York City jeweler Ezra Dweck and employees at EMH Group, LLC, are accused of more than 232,000 shill bids, according to State Attorney General Andrew M. Cuomo's office. The company must pay $400,000 in restitution and penalties, and Dweck and his company are now banned from the online auction industry for four years.
Ezra's lawyer said in an article on www.i4u.com, "they had resolved the matter 'only to avoid an interminable, costly battle with the AG's office. [They] did not intentionally encourage any fraudulent bidding.'"
In the same article, spokesperson for eBay, 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."
EBay brought the case to Cuomo's office to show buyers and sellers that it is making efforts to stop frauds on its sites.
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