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3 Kiwis nabbed for spamming

2008-10-15 14:11

Wellington - Three New Zealand men face fines of up to NZ$200 000 for their role in one of the world's largest spamming operations, which was shut down this week by US and other regulators, officials said on Wednesday.

The alleged spammers were part of a ring that sent billions of e-mails in recent years encouraging people to click through to websites that allegedly used false claims to peddle prescription drugs, "male enhancement" products and weight-loss pills.

New Zealand's Department of Internal Affairs alleges company director Shane Atkinson, his brother Lance Atkinson and an associate Roland Smits were involved in sending more than two million spam e-mails to New Zealand addresses alone between September and December 2007.

Lance Atkinson is also subject to a US Federal Trade Commission complaint in the US District Court that names several Americans involved in the ring, department spokesperson Trevor Henry said.

Genbucks Affiliate Programme

Under New Zealand anti-spam laws, the activity is not criminal and carries no prison term but the men are being sued in civil court by the department.

In a statement of claim filed in New Zealand's High Court, the department claims the trio earned more than US$2m in sales commissions from the global operation.

The department alleges Shane Atkinson was co-manager of the Genbucks Affiliate Programme and that Lance Atkinson, trading under the name of Sancash, recruited and paid spammers to market Genbucks products, adult sex toys and replica watches.

It said Roland Smits registered the domain names used in the Sancash spam e-mails and created alternative subject lines used to avoid interception by internet service providers' spam filtering software.

The e-mails marketed pharmaceutical products manufactured and shipped by Tulip Lab of India.

The defendants have 30 days to lodge a defence to the claim, and are expected to face civil trial next year, Henry said.

- AP

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