Spammers Plead Guilty to Multi-Million Dollar Email Stock Fraud Scheme
By Anna Johnson on June 29th, 2009Last week, five people pleaded guilty in U.S. federal court in Detroit for their roles in an international stock fraud and spam email scheme.
The main co-conspirators, Alan M. Ralsky, 64, and Scott K. Bradley, 38, both of West Bloomfield, Michigan, pleaded guilty to conspiracy to commit wire fraud, mail fraud and to violate the CAN-SPAM Act. They also pleaded guilty to wire fraud, money laundering and violating the CAN-SPAM Act.
Under the terms of his plea agreement, Ralsky faces up to 87 months in prison and a $1 million fine under the federal sentencing guidelines, while Bradley may get up to 78 months in prison and a $1 million fine.
John S. Bown, 45, of Fresno, Calif., and James E. Fite, 36, of Culver City, Calif., also pleaded guilty to conspiracy to commit wire fraud, mail fraud and to violate the CAN-SPAM Act, among other crimes.
William C. Neil, 46, of Fresno, pleaded guilty to conspiring to violate the CAN-SPAM Act and violating the CAN-SPAM Act. They each face significant fines and jail time. All five will be sentenced on October 29, 2009.
So what did they do?
According to court records, between January 2004 and September 2005, the group (along with others who either previously pleaded guilty or are yet to face court for their roles in the scheme) sent billions of spam emails enticing people to buy certain ‘pink sheet’ stocks and then, after people bought such stocks, sold them at a profit.
“Alan Ralsky was at one time the world’s most notorious illegal spammer,” said U.S. Attorney Terrence Berg for the Eastern District of Michigan Terrence Berg.
As you can see from the sentences and fines involved, the authorities are not shying away from making scammer-spammers pay the price for their wrongdoing…
