NZ spam king fined $21 million 

Source: ONE News

The New Zealand "mastermind" behind an international spam network has been ordered to pay $US15.15 million ($NZ21.33 million) by a US federal judge.

Lance Atkinson, originally from Christchurch but now living in Queensland, was identified by anti-spam organisation Spamhaus as the ringleader of the world's largest spam gang, marketing male enhancement pills, prescription drugs and weight-loss pills, the US Federal Trade Commission (FTC) says.

Atkinson pleaded guilty in the High Court in Christchurch last year to his role in the network and was fined $100,000.

In the same court last month his brother Shane Atkinson and Ronald Smits, both of Christchurch, admitted similar charges.

Shane Atkinson was fined $100,000 and Smit $50,000.

The FTC took its own action against Lance Atkinson as ringleader of the operation.

It said that Atkinson and US resident Jody Smith recruited spammers from around the world and sent billions of e-mail messages directing consumers to websites operated by an affiliate program called Affking, the FTC said.

"The defendants' spam messages deceptively marketed (the drugs) in violation of federal law.

"They falsely claimed that the medications came from a US-licensed pharmacy that dispenses FDA-approved generic versions of drugs such as Cialis, Propecia and Viagra."

The drugs were shipped from India and had not been approved by the FDA.

The FTC also said Atkinson and Smith made false claims about the security of customers' credit card information and other personal data provided when they bought goods.

Smith is awaiting sentencing and could face up to five years in prison.

He has been ordered to pay up to US$212,000 but could also be liable for a penalty of up to US$3.77 million.