Washington State

Office of the Attorney General

Attorney General

Bob Ferguson

The Federal Trade Commission announced today that it shut down the world's largest spam gang, known as "HerbalKings" among spam-fighing organizations. To spread their junk messages, the group used a botnet (a global network of computers infected with malicious software), often without the knowledge of PC owners. That's a good reason to make sure your computer is protected by a firewall, anti-virus software and anti-spyware software and that you've downloaded the latest updates.

The defendants include a Texan named Jody Smith and Lance Atkinson, a New Zealand citizen living in Australia, and four companies they control:  Inet Ventures Pty Ltd., Tango Pay Inc., Click Fusion Inc., and TwoBucks Trading Limited. The men are accused of recruiting spammers from around the world to send unsolicited junk mail related to bogus male-enhancement products, prescription pills, watches and other items.

The FTC received more than 3 million complaints about spam messages connected to this operation, and estimates the defendants may be responsible for sending billions of junk e-mails. Servers in China hosted the sites and the drugs were shipped from India, while operatives in Cyprus and the former Soviet republic of Georgia processed credit card information, according to reports. A federal court has frozen the defendants’ assets pending trial.

It’s not the first time Atkinson has come under federal fire. In June 2005, the FTC obtained a $2.2 million judgment against him and another business partner for running a similar spam affiliate program that marketed herbal products.

 

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