SEC brings case against pump-and-dump spammers

Posted by   Virus Bulletin on   Jul 11, 2007

Scam spotted after spammed mail sent to SEC lawyer.

Two men from Texas have been charged with a range of spam and fraud offences after a 20-month campaign using botnets to spam pump-and-dump mails aimed at pushing up the price of a range of 'penny' stocks. Their scam came to the attention of the US Securities and Exchange Commission (SEC), who have brought the case against them, after a spam pushing the stocks was received by a lawyer working for the Commission.

The two, 40-year-old Darrel Uselton and his 69-year-old uncle Jack Uselton, are described by the SEC as 'recidivist securities law violators', and allegedly used zombie networks to send out spam promoting stocks in at least 13 companies, swindling gullible recipients out of over $4.6 million in investments. $4.2 million of this has already been seized from accounts linked to the two men.

The SEC froze several of the 'scalped' stocks in March after noticing suspect activity, and vow to continue to punish perpetrators of such scams. Full details of the charges brought, which include money laundering and organised crime charges brought by Texas state and local law enforcement bodies, are in a release from the SEC here.

Posted on 11 July 2007 by Virus Bulletin

twitter.png
fb.png
linkedin.png
googleplus.png
reddit.png

 

Latest posts:

Necurs pump-and-dump spam campaign pushes obscure cryptocurrency

A Necurs pump-and-dump spam campaign pushing the lesser known Swisscoin botnet is mostly background noise for the Internet.

Alleged author of creepy FruitFly macOS malware arrested

A 28-year old man from Ohio has been arrested on suspicion of having created the mysterious FruitFly malware that targeted macOS and used it to spy on its victims.

The threat and security product landscape in 2017

At the start of the new year, Virus Bulletin looks back at the threats seen in the 2017 and at the security products that are available to help mitigate them.

Spamhaus report shows many botnet controllers look a lot like legitimate servers

Spamhaus's annual report on botnet activity shows that botherders tend to use popular, legitimate hosting providers, domain registrars and top-level domains when setting up command-and-control servers.

Tips on researching tech support scams

As tech support scammers continue to target the computer illiterate through cold calling, VB's Martijn Grooten uses his own experience to share some advice on how to investigate such scams.