Spam pays -- the Securities and Exchange Commission

Several years ago, a spammer named Rodona Garst had her private files published on the Internet when her computer was cracked in the process of using someone else's machine to send bulk mail. The files, which are still online, included ICQ and e-mail transcripts of Garst participating in pump-and-dump stock scams, a file containing 1,300 stolen AOL accounts, and two ill-advised nude photos.

The SEC Web site describes what happened next: After lying to investigators and then recanting, Garst settled a securities fraud case by agreeing to pay $15,600. The stock promoter she was working for, Mark E. Rice, was ordered to pay $1.44 million.

In honor of the most unprofitable spam in history, here's a quote from an e-mail exchange in which Rice advises Garst on how to invest in stocks before pumping them in millions of spam:

Due to the fact you have inside knowledge of a potential rise in the stock price guess what...... the SEC would say you are an insider! Not to fret there is the right way of doing it. If an unrelated entity (new corporation) set up an e-trade www.etrade.com account and did the buys and sells, that is the way to avoid the issues. This is very sensitive and I caution you to "stay silent" about our campaigns with the many stocks I feel we shall do.

Oops.

Comments

Hi there,

Would you really like this type of filtering?

Add a Comment

These HTML tags are permitted: <p>, <b>, <i>, <a>, and <blockquote>. A comment may not include more than three links. This site is protected by reCAPTCHA (for which the Google Privacy Policy and Terms of Service apply).