E-Fraudsters Plead Guilty In Stock Scam
Five individuals pleaded guilty in a Detroit, Mich., federal court Monday for their roles in a wide-ranging international stock fraud scheme involving the illegal use of bulk commercial e-mails, or spamming, Assistant Attorney General Lanny Breuer and U.S. Attorney for the Eastern District of Michigan Terrence Berg announced. Alan Ralsky faces up to 87 months in prison and a $1 million while his son-in-law Scott Bradley faces up to 78 months in prison and a $1 million fine. Berg said Ralsky was at one time the world's most notorious spammer. He, Bradley and three co-conspirators stand convicted for an operation that sent billions of illegal e-mail advertisements to pump up Chinese "penny" stocks and then reap profits by causing trades in these same stocks while others bought at the inflated prices.
"Using the Internet to manipulate the stock market through spam e-mail campaigns is a serious crime, and this case serves notice that federal law enforcement has the both the capability and the will to successfully investigate, prosecute and punish such cybercrimes," Berg said. The pair's cohorts -- John Bown and William Neil -- also face stiff penalties. Under the terms of his plea agreement, Bown acknowledged he faces up to 63 months in prison and a $75,000 fine. Neil faces up to 37 months in prison and a $30,000 fine under the federal sentencing guidelines. A fifth man, James Fite, faces up to two years in prison and a $30,000 fine. The group is scheduled to be sentenced on Oct 29. Breuer said the prosecution is the largest to date under the CAN-SPAM Act and it underscores the agency's "strong and steadfast commitment to ridding our financial markets and cyberspace of e-fraudsters looking to prey on innocent victims."
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