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Another Spammer Bites the Dust

Discussion in 'BlackHat Lounge' started by Essential Clix, Apr 30, 2008.

  1. Essential Clix

    Essential Clix Executive VIP Premium Member

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    DENVER - A Colorado man accused of sending hundreds of thousands of spam e-mails has been sentenced to 21 months in prison after pleading guilty to tax evasion and falsifying e-mail headers.

    Thirty-five-year-old Edward "Eddie" Davidson of Louisville was also ordered to pay nearly $715,000 to the Internal Revenue Service. He was sentenced Monday and ordered to report to prison authorities in May.

    Federal prosecutors say Davidson's operation used false e-mail headers to disguise the sender. Prosecutors say some of the spam was meant to dupe stock investors and manipulate markets.

    Authorities say Davidson made at least $3.5 million sending e-mails for nearly 20 companies.

    http://news.yahoo.com/s/ap/20080429/ap_on_hi_te/spammer_punished
     
  2. Shameless

    Shameless Newbie

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    Spamming is still big. And always will be I guess when there are companies paying 175000$ for illegal action.

    [​IMG]
     
  3. vmedia

    vmedia Regular Member

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    wow, that's a lotta cash
     
  4. IsoRipper

    IsoRipper Junior Member

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    If he made over 3 million, paying 715,000 and 20 months in the hole is not that bad i guess. Wait 2 years, get out of prison and on your way to the Bahamas with over 2 million... I would be up for that :)
     
  5. stewmath

    stewmath Jr. VIP Jr. VIP Premium Member

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    it wouldnt surprise me if he will come out of prison to find all his assets had also been seized
     
  6. oscarslater

    oscarslater Regular Member

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    i wouldn't be surprised if he comes out of prison and his ass is well and trully seized

    os..
     
  7. mcmutt

    mcmutt Guest

    What is he going to jail for spamming or tax evasion?
     
  8. Uptownbulker

    Uptownbulker BANNED BANNED

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    He was sued by Amazon back in 2003.

    hXXp://news.lp.findlaw.com/hdocs/docs/amazon/amzned82503cmp.pdf

    I can't find the exact text of the indictment on the net but here is an article with a bit more info:

    http://www.lawfuel.com/show-release.asp?ID=17786

    " DENVER (Lawfuel) ? Edward ?Eddie? Davidson, age 35, of Louisville, Colorado, was sentenced today by U.S. District Court Judge Marcia S. Krieger to serve 21 months (just under 2 years) followed by 3 years of supervised release for sending spam e-mail messages. Judge Krieger also ordered Davidson to pay $714,139 in restitution to the Internal Revenue Service (IRS). As part of the restitution, Davis has agreed to forfeit property he purchased, including gold coins, with the ill gotten proceeds of his offense. Davidson was indicted by a federal grand jury on June 5, 2007. He pled guilty before Judge Krieger on December 3, 2007. Davidson is free on bond, and was ordered to report to a facility designated by the U.S. Bureau of Prisons in May.

    According to the stipulated facts contained in a plea agreement, on July 5, 2002 through April 15, 2007, Davidson conducted a business in Colorado using the name Power Promoters. The primary nature of Davidson?s business consisted of providing promotional services for companies by sending large volumes of unsolicited commercial electronic messages (?spamming?). The spamming was designed to promote the visibility and sale of products offered by various companies. Davidson utilized the services and assistance of other individuals who he hired as ?sub-contractors? to provide spamming at his direction on behalf of his client companies.

    During 2002 through the middle of 2005, Davidson?s spamming activities were provided on behalf of companies to promote watches, perfume, and other items. Beginning in the middle of 2005 through 2006, Davidson sent spam on behalf of a Texas company for purposes of promoting the sale of the company?s stock. The company generated its income through selling stock (commonly referred to as ?penny stock?) on behalf of small companies on the public market. Davidson aided by several sub-spammers sent hundreds of thousands of unsolicited e-mail messages to potential purchasers throughout the United States and the world, which messages touted the penny stock as an excellent investment. Davidson possessed hundreds of thousands of e-mail addresses, which he and his sub-spammers would use to send email messages. Such e-mail messages contained false header information, which concealed the actual sender from the recipient of the e-mail. Davidson provided spammed messages for approximately 19 companies. Davidson operated his spamming activities from his personal residence in Bennett, Colorado, where he had a large network of computers and servers, which facilitated his business.


    ?Spammers who abuse the Internet to manipulate the stock market may find themselves in federal prison,? said Troy A. Eid, United States Attorney for the District of Colorado.

    ?Spamming schemes threaten the financial health of our communities, and cause significant losses to the honest investor,? said James H. Davis, Special Agent in Charge of the FBI Denver Division.

    ?Spamming deceptive messages to dupe potential investors is part of a larger scheme driven by greed, which includes efforts to hide income and assets from the IRS,? said Terry L. Stuart, Special Agent in Charge of the IRS-Criminal Investigation, Denver Field Office. ?Those involved face federal prison, and severe civil penalties and interest on any unpaid taxes from their scheme.?

    This case was investigated by the Federal Bureau of Investigation (FBI) Denver field office, and the IRS Criminal Investigation Division. Assistant U.S. Attorney Tim Neff prosecuted the cass."
     
  9. designer

    designer Junior Member

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    Yeah,

    I don't think that's your average spammer. - It's not like just sending a bunch of emails. When you setup up entire operations to scheme that could certainly attract some of the wrong attention.
     
  10. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    He should head for the border with as much cash as he can take with him.
    Although his accounts are probably under lock by the State. :p

    If he can get to Mexico, then he's home free. :D


    TSP
     
  11. justmeron

    justmeron Power Member

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    It's feds and he said he agreed to forfit property purchased with the money.
     
  12. Diabolik

    Diabolik Newbie

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    It's not really the spamming so much, it's that he was manipulating the stock markets...and that's a BIG Federal no-no. That's like racketeering and gets you a RICO violation...that they could get him for using email as well was just a bonus.
     
  13. samloron

    samloron Junior Member

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    Don't mess with the IRS, last people to f#ck with. I believe the tax evasion influenced the ruling against him more than the spamming.
     
  14. yragcom1

    yragcom1 Junior Member

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    I wonder is that's the dude that sent crappy stock tips VIA email with GIFs as part of the email to avoid the spam filters. I got his stuff ALL the time.
     
  15. Diabolik

    Diabolik Newbie

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    It's kinda hard to pay taxes on money you're earning illegally. That was the only way they could finally nail Capone. Income tax evasion is such a flimsy excuse considering that income tax was introduced as an emergency tax and was supposed to end at some point.
     
  16. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    After Nixon left office, he used the IRS to get back at his enemies.
    Dunno how that worked out tho... :D


    TSP
     
  17. MiLiTARYiV

    MiLiTARYiV Senior Member

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    Actually they got him on not paying taxes. Thats a big no no.