AOL Wins Three Spam Suits, Files Nine More

America Online in Dulles, VA said it has won three lawsuits against junk e-mailers and filed nine new suits targeting porn-spammers, get-rich-quick
schemers and sellers of spamming software.


In each of the victories, AOL said, the court awarded “substantial
monetary damages.” And, for the first time in one case, the court applied
federal and state computer fraud statutes recognizing that existing computer
fraud statutes apply to the transmission of falsified e-mail.


“These legal victories underscore the court’s recognition that junk e-mail
damages both our members and AOL,” said Randall Boe, AOL’s associate general
counsel. “They also deliver a strong message: AOL will not tolerate junk e-
mail on its network. . .”


In the winning cases:


LCGM in Madison Heights, MI , a spammer for pornographic Web sites, was
ordered to pay damages and costs, including attorney’s fees, for sending
millions of pieces of junk e-mail to AOL members. The court also ordered LCGM
to cease transmission. The court also ruled that LCGM, by employing methods
and software designed to defeat AOL’s spam filtering technologies, had
committed fraud. The court therefore applied both state and federal computer
fraud laws.


The court also ordered Prime Data of Bowling Green, KY and its principal
operator Vernon Hale, to pay damages to AOL for the costs of handling millions
of pieces of junk e-mail. The court also noted that the “malicious” nature of
the defendant’s conduct warranted punitive damages triple the amount of the
actual damages.


In a previous ruling, a case against IMS in Knoxville, TN yielded the first-
ever judicial opinion finding that “AOL.com” forgery violates federal
trademark statutes. In bringing this case to a conclusion, the court ruled
against IMS, its principal Joe Melle and two other spammers: Brian Robbins, a
spammer advertising a dubious “credit repair” scheme, and Neil Byron Goodson,
a Louisiana-based seller of “Floodgate” spam software.


The court found each liable for actual damages and imposed triple punitive
damages. The court also provided AOL with injunctive relief and barred the
defendants from ever again sending e-mail to AOL or its members.


New lawsuits were brought against nine alleged spammers in five different
states.


The cases by state:

Virginia

Power Promo and Forrest Dayton (Marietta, GA): AOL has brought suit against
Power Promo and Dayton not only for their prolific spamming activities, but
also for their alleged selling of the “Stealth” software program, which
encourages and enables junk e-mailers to evade the technological blocks and
filtering software AOL and others use to block spam. Filed in the U.S.
District Court for the Eastern District of Virginia


GreatDeals.Net (Reston, VA): GreatDeals.Net is a seller of computer hardware.
Despite having received a cease and desist request from AOL, GreatDeals.Net
has continued to send junk e-mail to AOL members. AOL is seeking damages and
an end to spam sent from GreatDeals.Net. Filed in the Fairfax, VA County Court.


California

“Virtual Girlfriend” Spammer (Sunland and Tujunga, CA): This suit targets a
ring of spammers that defrauds consumers who attempt to purchase the
advertised software package. Filed in the U.S. District Court for the Southern
District of California.


Michael Persaud, et. al. (San Diego, CA): This suit alleges that Persaud,
operating under the names J.Butterfield, Henry Summers and Brian Crawford, has
sent millions of pieces of junk e-mail to AOL members despite a cease and
desist request. Filed in the U.S. District Court for the Southern District of
California.


USA Home Employment (Studio City, CA): USA Employment has been identified as a
spammer of “get-rich-quick” envelope stuffing schemes.. Filed in the U.S.
District Court for the Central District of California.


Iowa

National Health Care Discounts, Inc. (Sioux City, IA): The suit alleges that
this corporation uses spammers to generate sales leads by deluging AOL members
with messages promoting NHCD’s health insurance products. Filed in the U.S.
District Court for the Northern District of Iowa, Western Division.


Florida

Global Marketing Solutions Inc. (Orange County, FL): This suit targets a
spammer of junk e-mail and purveyor of a “Guaranteed. . .$10,000 cash loan!”
program. Filed in U.S. District Court for the Middle District of Florida.


First Class Advertising (Valusia and Orange County, FL): This suit targets a
bulk e-mailer responsible for sending AOL members junk e-mail advertising the
sale of “Beanie Babies” and bulk e-mail services. Filed in U.S. District Court
for the Middle District of Florida.


New York

The Christian Brothers (Brooklyn, NY): AOL alleges that this spammer has
persistently used junk e-mail to advertise a “miracle cancer cure” (apricot
seeds). Filed in the U.S. District Court for Southern District of New York.

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