The Federal Trade Commission has shut down one of the largest global spam operations that promoted prescription drugs and bogus male-enhancement products
The FTC says it has received more than three million complaints about spam messages connected to the operation known as HerbalKing. It estimates that it may be responsible for sending billions of illegal spam messages.
At the request of the FTC, a U.S. district court has issued a temporary injunction prohibiting the defendants from spamming and making false product claims, and has frozen the defendant’s assets. Authorities in New Zealand also have taken legal action, working along with the FTC.
One product called “VPXL” was promoted as an herbal male-enhancement pill. It was advertised as “100% herbal and safe.” The FTC had the pills tested by the FDA and found they were not 100% herbal or safe. The pills contained sildenafil, the active ingredient in Viagra that can lead to an unsafe drop in blood pressure in people taking drugs to treat diabetes, high blood pressure, high cholesterol or heart disease.
According to papers filed with the court, the defendants recruited spammers around the globe to send billions of spam messages directing people to Web sites operated by an affiliate program called “Affking.” By using false header information to hide the origin of the messages, not offering an opt-out link, and failing to provide a physical postal address, the defendants violated the CAN-SPAM Act.
Some security researchers believe that at one time, nearly one-third of the world’s spam came from a network of compromised computers. The spam network included participants in Australia, New Zealand, China, India, Russia, Canada, and the U.S.
The primary defendants are Lance Atkinson, a New Zealand citizen living in Australia, and Jody Smith of Texas. The FTC’s complaint charges that both Atkinson and Smith are liable for the spamming. It holds Atkinson responsible for all product claims, and Smith liable for claims made for the pharmaceutical products.
