Online auction company eBay, which sells everything from Elvis memorabilia to Beanie Babies on the Internet, has suspended a user who is under investigation for cheating customers out of as much as US$100,000, according to a report in the latest issue of Newsweek.
But the high-flying San Jose, California, company has refused to give refunds to the duped customers, Newsweek reported, suggesting that eBay (EBAY) may be unable to protect its customers from fraud.
The Oklahoma regional postal inspector's office is investigating suspended eBay user Sonny Stemple for allegedly bilking eBay customers out of at least $30,000. Newsweek reported that Stemple got customers to send money orders for auction items he failed to deliver.
"We feel badly for [the victims] but [they] really do need to take it up with local law enforcement," eBay chief Meg Whitman told the magazine.
The online auction house, among the fastest growing online commerce sites, has seen its stock prices skyrocket prices from an initial public offering price of $18 in September to a November high of $234.125. The stock closed Friday at $192.
