Saturday, November 28, 2009

Spam, Spam, Spam

Spam is the bane of the Internet and we all spend time building rules and junking these unwanted pest. So it was good news to read that Alan Ralsky, "Godfather of spam" has been sent to jail along with his team for some 4 years for wire fraud, mail fraud, and violations of the CAN-SPAM act.

Ralsky conned many into investing in IPO stocks which in turn boosted their stock price and enabled the owners to quickly exit and forward tens of thousands of dollars from Hong Kong to the Standard Federal Bank in Troy, Michigan. In July 2005 over $1.5 million was transferred! The operation was sophisticated with operations in New York, Brazil, California, Hong Kong, and Dayton, Ohio.

It is claimed Ralsky earned more than $2.6 million between May 1 and December 1, 2005. alone, but the feds were closing in. A three-year investigation by the FBI, the US Postal Inspection Service, and the Internal Revenue Service (with a little help from the SEC) untangled the conspiracy. In 2007, the government moved to indict the entire conspiracy.

The only issue is that someone no doubt will step up to fill Ralsky’s shoes.

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