Spam King Indicted for Stock Scheme

The indictment against Alan Ralsky, said to be one of the world’s most prolific spammers, indicates that Ralsky used botnets as part of his pump-and-dump stock scheme. While Ralsky was the mastermind behind the scheme, John Hui, a dual national of Canada and Hong Kong, acted as a “conduit” for Chinese companies who wanted their stocks pumped.The jig may be up for the “spam king.” A federal grand jury in Detroit has indicted Alan Ralsky, his son-in-law, and nine others with running a spamming pump-and-dump scheme.”Today’s charges seek to knock out one of the largest illegal spamming and fraud operations in the country, an international scheme to make money by manipulating stock prices through illegal spam e-mail promotions,” U.S. Attorney Stephen Murphy said in a statement.The spam messages promoted Chinese penny stocks and drove up their prices before they were sold for profit, the government charged. Prosecutors described Raksly as a “prolific spammer.”

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