Posted on: Thursday, November 4, 2004
Verdict may deter spread of spam
Advertiser News Services
A Virginia jury's conviction yesterday of a brother and sister in the nation's first felony prosecution of spammers is a landmark victory in the war against unwanted junk e-mail, industry experts said.
Jeremy Jaynes, considered one of the nation's biggest spammers, and Jessica DeGroot were found guilty of masking their return Internet addresses last summer to send thousands of bulk e-mail peddling software and stock picks to America Online and other Internet customers.
The 12-member jury recommended Jaynes, 30, be sentenced to nine years in a Virginia prison, and DeGroot, 28, be fined $7,500. Judge Thomas Horne is expected to sentence them next year.
Prosecutors likened Jaynes and DeGroot to old-time snake oil salesmen who instead use the Internet to peddle junk like a "FedEx refund processor" that supposedly let people earn $75 an hour working from home.
In one month alone, Jaynes received 10,000 credit card orders, each for $39.95, for the processor.
Prosecutor Russell McGuire said Jaynes amassed a net wealth of $24 million peddling worthless products like the refund processor and other products like a "penny stock picker" and an Internet history eraser.
A third defendant, Richard Rutowski, was acquitted.
The convictions are the latest sign that government and industry crackdowns on spam are inching forward. A yearlong Justice Department cybersting netted 160 arrests in August. The FBI also is stepping up efforts. And Internet service providers, such as No. 1 AOL and EarthLink, are pressing more lawsuits to shut down spamming firms.
"This is very significant. Spam may not go away, but if you're caught, you will go to prison," Lisa Hicks-Thomas, Virginia's senior assistant attorney general, said of the verdict.
David Oblon, Jaynes' attorney, filed a motion to reverse the verdict — considered a long shot by legal experts. Yesterday's convictions could prompt more indictments against spammers with operations in Virginia, where 80 percent of Internet traffic flows, security experts say.
USA Today and The Associated Press contributed to this report.
