08 May 2014
Ex eBay affiliate marketer Shawn Hogan has been sentenced to serve five months in prison for defrauding eBay of $28 million in affiliate fees, according to Small Business Trends.
He also received three years on probation after reaching a settlement with eBay and the federal government. Hogan’s affiliate fraud was investigated by eBay and the FBI since 2006, and the trial dates back to 2008.
eBay had alleged that Hogan had rigged the company’s system so that it falsely credited him for sales he did not generate.
“He did it by seeding unknowing users with hundreds of thousands of bits of tracking code, or `cookies’,” said The Business Insider Magazine. “If any of those people bought something on eBay, the code signaled to eBay that Hogan should get a cut of the sale — even though he had done nothing to promote eBay.”