Spam News

Chinese penny-stock spammers plead guilty

Monday, June 22, 2009

Five people connected to an illegal spamming campaign that sought to pump up sales of Chinese penny stocks pleaded guilty Monday to wire fraud and violating the CAN-SPAM Act.

According to the U.S. attorney for the eastern district of Michigan, the spam operation sent billions of illegal spam advertisements in 2004 and 2005 to pump up Chinese penny stocks in order to reap profits by causing trades in these same stocks while others bought at the inflated prices.

Alan M. Ralsky and his son-in-law Scott K. Bradley, both of Michigan, pleaded guilty to conspiracy to commit wire fraud, mail fraud and to violate the CAN-SPAM Act. Ralsky and Bradley also pleaded guilty to wire fraud, money laundering and violating the CAN-SPAM Act.

"Alan Ralsky was at one time the world's most notorious illegal spammer," said U.S. Attorney Terrence Berg. "Using the internet to manipulate the stock market through spam email campaigns is a serious crime."

Under the terms of his plea agreement, Ralsky faces up to 87 months in prison and a $1 million fine while Bradley faces up to 78 months in prison and a $1 million fine, prosecutors said.

John S. Bown, 45, of Fresno, California, pleaded guilty to conspiring to commit computer fraud by creating a botnet and violating the CAN-SPAM Act.