Online sellers have one more thing to worry about: employees stealing from their PayPal accounts.
An executive for online merchant Shoplet pleaded guilty on Thursday for embezzling nearly $6 million from his employer.
The General Counsel managed Shoplet’s PayPal accounts exclusively, according to the DA’s press release, which said he embezzled almost $6 million by diverting money from his employer’s PayPal accounts into his own personal PayPal accounts. From there, he transferred the stolen funds into various bank accounts in his name and spent the money on extravagant personal expenses, such as travel, high-end designer shopping, and purchases of a BMW and a Porsche, according to the announcement from the Manhattan District Attorney.
Readers may recall the name – Shoplet was one of eBay’s earliest Diamond powersellers, brought on in 2008 as part of eBay’s stealth “Operation Catalog.” The program was controversial because eBay was reportedly offering large retailers free listings, reduced commission fees, and other special treatment.
According to his LinkedIn profile, Shoplet’s General Counsel also held the title of Senior Vice-President of Business Development. He is scheduled to be sentenced on October 8, 2020, and faces 3 to 9 years in prison and restitution, including his interest in his family home.
The case serves as a lesson to online merchants on the importance of building accountability into their operations.