The Federal Trade Commission announced on Tuesday that, in
collaboration with authorities in New Zealand, they’ve managed to shut down a
vast international spam ring that crowded our e-mails with prescription drugs
and Viagra offers. The “spam gang,” as they called it, was the world’s largest.
The FCT demanded the court to issue a temporary injunction prohibiting the
conspirators from spamming and making false product claims, and has frozen all
of their assets in anticipation for the trial.
The spam gang is an international network active that
includes Jody Smith, and Lance Atkinson -- well-known spammer and former
partner of Mike van Essen in the ROSKO case, according to Spamhous, the
anti-spam organization. In 2005, the FTC won a $2.2 million judgment against
Atkinson and his then business partner for similar spam activities that
marketed herbal products.
Together, Atkinson and Smith controlled four companies, Inet
Ventures Pty Ltd., Tango Pay inc., Click Fusion inc., and TwoBucks Trading
Limited. FTC filed a lawsuit against the two for spamming, holding Atkinson responsible
for all product claims, and Smith liable for claims made for the pharmaceutical
products. The two spammers marketed a variety of products though spam messages,
such as mail-enhancement pills, prescription drugs and weight-loss pills.
The spammers claimed in their e-mails that the prescription drugs came from an US-licensed pharmacy which dispensed generic versions of drugs such as Levitra, Avodart, Cialis, Propecia, Viagra, Lipitor, Celebrex and
Zoloft, with FDA's approval. Tests revealed
that the dugs came from India, didn’t have FDA’s approval and were potentially
unsafe.
In that respect, the FDA tested the herbal male-enhancement
pill “VPXL” which the spammers promoted as a wonder pill that supposedly permanently
increased the size of the user’s penis, and revealed that not only was the pill
inefficient, but it was also unsafe. VPXL were found to contain sildenafil, which
is normally contained in Viagra; the ingredient is known to potentially drop
the blood pressure in men also taking nitrate-containing drugs to treat
diabetes, high blood pressure, high cholesterol or heart disease.
Furthermore, the claims that their weight-loss pills contained
Hoodia gordonii, a plant that supposedly could help people lose up to six pounds
in just one week, were not only false, but also broke the federal law, FTC
reported.
The spammers also assured consumers that their websites, “Target
Pharmacy” and “Canadian Healthcare,” were encrypted with SSL technology, which
protected their personal information, such as credit card information. However,
the investigators found this was also a false claim.
The FTC reported that the spam gang sent billions of
spam e-mails, with false header information, directing consumers to a website
operated by them. In addition to that, they also violated the CAN-SPAM (Controlling
the Assault of Non-Solicited Pornography and Marketing) Act of 2003, by failing
to provide an opt-out link and a physical postal address.
Despite the announcement, the spam kept on coming, but
according to Spamhous, this is normal, considering that the spammers were using
botnet spam system that automatically sends the messages without being
controlled.