iMad at eBay Auction Fraud
Latest database statistics:
As of June 17, 2002, there are 112 people in the database for a total of:
$322,079 in total purchases
$57,778 in refunds (21 confirmed)
$264,301 outstanding refunds (85 people waiting)
$212,052 in bounced checks (57 people got 72 bad checks)
$14,118 in checks that cannot be deposited
IMPORTANT: These numbers represent those people that have willingly participated in communicating with the group but in no way represents the full scope of the problem. There are bounced checks, people holding checks, outstanding funds as well as refunds that are not included in the database because those individuals have not yet responded to be added to the database.
What we would like to see eBay change
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When an eBay seller fails to deliver, new Macintosh buyers get iMad.
There is much more demand for the new flat screen iMacs than there is supply. Computer stores have backorders for up to six weeks on the most popular models. So when Mel Knowles of Santa Barbara, CA, saw the model he wanted on an eBay auction from ShadowSB, LLC., he snapped it up for $1,594, and paid by Certified Cashier's Check since the seller wouldn't take credit cards or any of the common forms of electronic payment. Many other on-line shoppers familiar with eBay's strict rules of e-commerce did the same.
Weeks went by, then months, and no iMac. Knowles complained to the seller listed as Smith Berkeley Communications LLC and Bulletproof Industries, and their owner, Teresa Smith. Finally, after two months of emails and phone calls, he was sent a refund check for the full amount of his purchase, and it immediately bounced due to insufficient funds. Knowles figured he wasn't the only one who got burned, so he did some research and discovered a "support" group of consumers that were ripped off by the eBay seller.
As of April 24, 2002, 70 people in the iMad support group reported:
$190,390 in total purchases from 12/11/01 through 3/15/02
$ 52,883 in total refunds (17 confirmed refunds)
$137,507 outstanding balance (53 outstanding refunds)
Purchases ranged from $1,594 to $7,800.
33 people have received a total of 43 bounced checks totalling $122,634 that have been confirmed. A number of folks are holding checks they can't cash.
Knowles thinks there are many more unfulfilled buyers out there who have not found the group. To make matters worse, anecdotal evidence has surfaced that eBay may have been aware of the seller's shoddy history but continued to allow her to sell on its on-line auction service. In fact, it appears eBay even contacted the U.S. Postal Inspector a full two months before shutting down ShadowSB.
By the group's estimation, eBay collected over $4,500 in fees from ShadowSB. Unfortunately, their consumer fraud guarantee only protects the first $200 of purchases. To make matters worse, eBay has now prohibited its members from even discussing potential fraud on its online discussion boards. Read more at http://msn.com.com/2100-1106-885783.html. At least two iMad group members report having been defrauded in other recent eBay computer auction scams. Apollo in Nevada wrote, "The only reason I used eBay was I thought that with all their P.R. and hype it would be a safe transaction. I truly believe that eBay is more concerned with profit than with security."
As a result of the consumer mini-revolt, the seller is now being investigated by USPS Inspectors and the Fraud Division of the FBI along, with several local agencies in Worcester, Mass, the headquarters of Smith Berkeley Communications LLC and Bulletproof Industries. For many of the buyers, this has been a real financial hardship as they were counting on new computers for their work and now have neither computers nor their money. Depending on the model ordered, many are out $3,000 or more.
Was it an offer too good to be true? Knowles and other iMad buyers are beginning to think that's the case. In the meantime, he bought a new flat screen iMac from another eBay seller, and it was delivered as promised. Media designer Steve in New York has not been so lucky, "With four young boys and a baby girl, it's been tough to say the least. But the Lord has gotten us through. I didn't (and still don't) have enough cash set aside to purchase another system while waiting for this situation to be rectified. As you know, marital relationships seem to work much better without the extra stress of misappropriated finances too."
Has ShadowSB auction e-fraud reached your friends or business associates? If so, ask them to contact the iMad support group at victimshadowsb@yahoo.com.
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