HUGE FRAUD AT CHINA ECOMMERCE GIANT ALIBABA.COM: Management Out, 100+ Employees Dismissed

Jack Founder Jack Ma


Alibaba, the biggest e-commerce company in China, is suddenly gripped by scandal.CEO David Wei and COO Elvis Lee have resigned, along with 100 sales people, after more than 2,300 fraud accounts were discovered, The Guardian reports.

Alibaba is often referred to as the “eBay of China” but it’s really a listings marketplace for small and medium businesses, which can set up storefronts. The company’s staff have “intentionally or negligently” approved as verified vendors thousands of accounts that were really fraud. An internal investigation demonstrated that the company disregarded rising amounts of fraud complaints over the past nine months.

David Wei and Elvis Lee were not personally involved or personally benefited from the fraud, the company says, but they’re taking responsibility and resigning. The company will pay $1.7 million dollars in fraud reimbursements.

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