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EarthLink Wins $16 Million in Spam Case
PC World/IDG News Service ^ | Wednesday, May 07, 2003 | Paul Roberts

Posted on 05/07/2003 6:47:13 PM PDT by anymouse

A district court in Atlanta has awarded EarthLink $16 million in damages against a New York state man that it alleged used illegal means to send out more than 825 million unsolicited e-mail messages, commonly referred to as spam.

The court also permanently banned the defendant from spamming and from a host of related activities. These include distributing mass e-mail software and selling e-mail addresses, according to Pete Wellborn, legal counsel for EarthLink and the company's lead litigator in the case.

In a statement issued Wednesday morning, EarthLink said that a ring led by Howard Carmack obtained Internet accounts by means of stolen credit cards, identity theft, and bank fraud, and then used those accounts to send out reams of spam.

Carmack could not be reached for comment.

Carmack used the accounts of family members, including a brother, and of third parties to mask his activities. He sent out now-familiar spam messages promoting work-at-home and get-rich-quick schemes and cable television descramblers, according to Wellborn.

"This was the worst of the worst of the worst of what you see in spam," the attorney says.

Spammer Still Loose

The company began investigating the spam ring in March 2002 after what it describes as a "spike" in spam e-mail from the Buffalo, New York, area.

By October, an EarthLink team led by Mary Youngblood, EarthLink's network abuse team manager, had identified and contacted a number of people involved in the ring with Carmack. Those people fingered Carmack as the ringleader.

EarthLink pursued Carmack and shut down several accounts he used. Nevertheless, Carmack's spamming activities continued to be "a big enough nuisance" that EarthLink turned to the courts for relief, according to an EarthLink spokesperson.

Carmack did not appear in court in Atlanta on Wednesday, nor was he represented by legal counsel, according to Wellborn.

Referring to conversations he had had with Carmack, Wellborn said the defendant did not appear to take the charges seriously.

"He thumbed his nose at the lawsuit and me and the judicial system. He told me 'Nothing is in my name, so you'll never catch me,'" Wellborn says.

Unopposed by a counsel for the defendant and armed with sworn affidavits from one of Carmack's business associates and his own brother concerning his illegal spamming activity, EarthLink's attorneys had little trouble convincing the judge to rule against Carmack.

Wellborn says the ruling is a "best-case scenario" for EarthLink and Internet users weary of spam e-mail messages.

"The court's permanent injunction protects Internet users everywhere, and the $16 million damages award sends a message to everyone out there that if you keep spamming there will be a financial death penalty," he said.

ISPs Take Action

Faced with a flood of spam e-mail, major ISPs such as EarthLink have increasingly used the courts, in addition to antispam technology, to stem the tide of junk messages.

In April, America Online filed five separate lawsuits against alleged spammers as part of its antispam campaign.

Those lawsuits, filed in AOL's home state of Virginia, charge over a dozen companies and individuals with sending an estimated 1 billion spam messages to AOL members. It names suspects from Maryland and Washington state, as well as a number of John Doe defendants.

And in another sign of the increasingly litigious environment surrounding the issue of spam, the SpamCon Foundation, a nonprofit antispam group, said Wednesday that it had created a legal fund to assist antispam litigants caught up in lawsuits.

The first beneficiaries of the fund will be defendants named in a case brought by EMarketersAmerica.org, an association representing e-mail marketers, against several antispam organizations.

SpamCon is also forming a legal advisory board to help antispammers in select cases, and it hopes to help shape evolving laws and legal principles regarding spam, organization representatives said.


TOPICS: Business/Economy; Crime/Corruption; News/Current Events; Technical; US: Georgia; US: New York
KEYWORDS: earthlink; internet; lawsuit; spam
Death to spammers!
1 posted on 05/07/2003 6:47:14 PM PDT by anymouse
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To: anymouse
Why isn't he in jail?
2 posted on 05/07/2003 6:51:48 PM PDT by doug from upland (my dogs ran from the room when they heard Hillary shrieking on the radio)
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To: anymouse
Death to Spammers, Hackers, and Virus creators!!!!!!!!!!!

We just signed up with Earthlink broadband this week. We like them so far!!!!!!!!
3 posted on 05/07/2003 6:56:46 PM PDT by buffyt (The Democrat Whiners are Jealous of President Top Gun Bush's GRAVITAS!!!!!!!!!!!!!!!!)
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To: anymouse
Carmack the Maggot-ificent
4 posted on 05/07/2003 7:04:45 PM PDT by jlogajan
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To: anymouse
Carmack did not appear in court in Atlanta on Wednesday, nor was he represented by legal counsel. Referring to conversations he had had with Carmack, the defendant did not appear to take the charges seriously. "He thumbed his nose at the lawsuit, me, and the judicial system. He told me 'Nothing is in my name, so you'll never catch me,'" Wellborn says.

So where is the Spam creep? Did they get him or not? Did Earthlink get their money? Has Spam been defeated??

This type of reporting sucks. They ask lots of questions but never report any answers.

5 posted on 05/07/2003 7:13:47 PM PDT by jrushing
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To: doug from upland
Be patient, dfu. He's got specific court orders not to spam and he will spam. That means he can be held in contempt of court. And that means jail. And with a federal contempt citation, he can be held up to 18 months in a federal jail (not prison). Jail is much more unpleasant than being in a Club Fed.
6 posted on 05/07/2003 7:51:45 PM PDT by Catspaw
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To: anymouse; TroutStalker; All
See also the Wall Street Journal piece posted here.
7 posted on 05/07/2003 7:57:12 PM PDT by dighton (Amen-Corner Hatchet Team, Nasty Little Clique, Vulgar Horde)
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To: jlogajan
I use earthlink for my email address, and have for years. They have managed to eliminate most of the spam emails, but I still get several each week wanting me to increase the size of an organ that I don't happen to have. Hope they will soon get rid of this one, too!
8 posted on 05/07/2003 9:47:11 PM PDT by basil
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To: doug from upland
"Why isn't he in jail?"

Why aren't his ba** nailed to a fence post as a warning to others. This creep is in the same camp as the assh@els who pester people on the telephone at dinner time.

9 posted on 05/07/2003 9:58:11 PM PDT by blackbart.223
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To: blackbart.223
I usually have fun when they call me at home. I start by saying I'm so glad they returned my call. Then, I try to sell them a piece of income property. I ask for their yearly income, financing ability, amount of down payment, etc. It doesn't long at all for them to not want to talk to me anymore.
10 posted on 05/07/2003 10:13:48 PM PDT by doug from upland (my dogs ran from the room when they heard Hillary shrieking on the radio)
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To: anymouse
a ring led by Howard Carmack obtained Internet accounts by means of stolen credit cards, identity theft, and bank fraud

Howard Carmack and Bill Clinton have something in common -- we wonder why they're not behind bars where they belong.

11 posted on 05/08/2003 6:09:42 AM PDT by steve-b
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To: dighton
Thanks for the flag. Glad to see this guy going down.
12 posted on 05/08/2003 7:25:39 AM PDT by TroutStalker
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To: anymouse
if you keep spamming there will be a financial death penalty

There should be an actual death penalty. Preferable something cruel and unusual.

13 posted on 05/08/2003 7:28:57 AM PDT by Alouette (Why is it called "International Law" if only Israel and the United States are expected to keep it?)
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To: basil
but I still get several each week wanting me to increase the size of an organ that I don't happen to have

Female, or French?

;)

14 posted on 05/08/2003 10:53:37 AM PDT by kezekiel
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To: kezekiel
Female--certainly not french--LOL, but I like your sense of humor.
15 posted on 05/08/2003 8:50:32 PM PDT by basil
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To: doug from upland
"I usually have fun when they call me at home. I start by saying I'm so glad they returned my call. Then, I try to sell them a piece of income property. I ask for their yearly income, financing ability, amount of down payment, etc. It doesn't long at all for them to not want to talk to me anymore."

That sounds like a good reponse. I'll try it when they catch me off guard and I don't pay close attention to caller ID.

Having said that, phone solicitors are lower than used car salesmen and personal injury attorneys.Hell, They are even lower than Bill and Hillary. Well, maybe not, but close.

16 posted on 05/08/2003 9:52:14 PM PDT by blackbart.223
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To: anymouse
He is going to have to sell ALOT of Viagra and Goat porn to come up with that money
17 posted on 05/08/2003 9:54:27 PM PDT by ContentiousObjector
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To: Alouette
There should be an actual death penalty. Preferably something cruel and unusual.

I'd settle for entertaining. And, I want popcorn. With lots of butter. And napkins so I don't have to wipe the smut on my shirt.

18 posted on 05/08/2003 9:58:34 PM PDT by strela ("Use up the Irish!" "Its MY Island!")
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To: anymouse
$16 million... Earthlink could use it to lower its monthly subscription rates for its regular customers. This is one benefit of making the spammers pay up front for inflicting their unwanted garbage on the rest of us.
19 posted on 05/08/2003 10:00:42 PM PDT by goldstategop ( In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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