Kenneth Fetterman, one of three men who allegedly spearheaded a fraudulent bidding scheme on eBay for nearly two years, was sentenced May 25 to 46 months in prison and ordered to pay $94,000 in restitution by the Eastern District Court of California.
The $94,000 in restitution will go to those who purchased art on eBay, the price of which was inflated by the shill-bidding scheme run by the trio. The case involves more than 20 purchasers, according to Patrick Hanly, the U.S. attorney for the Eastern District Court of California.
Fetterman, along with Kenneth Walton and Scott Beach, pled guilty to using made-up identifications on eBay to boost up the bidding on fake artwork, including a bogus Richard Diebenkorn painting. One bidder went as high as $135,805 for a fake Diebenkorn painting. Their scheme lasted from November 1998 to June 2000 and involved the sale of hundreds of paintings.
Walton and Beach will be sentenced on June 29.
Fetterman's sentencing was considered "a stiff sentence in such a case," Hanly wrote in an email.
Fetterman pled guilty to six counts of money laundering in March 2004. This came after his indictment in March 2001, which prompted him to flee and evade authorities for two years. He was arrested in Wichita, Kansas, on January 11, 2004.
eBay's policy against shill bidding results in a temporary suspension in a first-time offense after an investigation by the company. One characteristic of shill bidding according to eBay is when a seller bids on their own item. eBay also does not allow replica or counterfeit items such as a purse with a Chanel logo that wasn't made by the designer. Bidding on those types of items will be ended early by the company and the seller may face suspension.
