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Business Impact

Man described as 1 of world's top 10 spammers arrested in US

SEATTLE (AP) – A man described as one of the world’s most prolific spammers was arrested, and U.S. authorities said computer users across the Web could notice a decrease in the amount of junk e-mail.

Robert Alan Soloway, 27, is accused of using networks of compromised ”zombie” computers to send out millions of spam e-mails.

”He’s one of the top 10 spammers in the world,” said Tim Cranton, a Microsoft Corp. lawyer who is senior director of the company’s Worldwide Internet Safety Programs. ”He’s a huge problem for our customers. This is a very good day.”

A federal grand jury last week returned a 35-count indictment against Soloway charging him with mail fraud, wire fraud, e-mail fraud, aggravated identity theft and money laundering.

Soloway pleaded not guilty Wednesday afternoon to all charges after a judge determined that – even with four bank accounts seized by the government – he was sufficiently well off to pay for his own lawyer.

Soloway has been living in a ritzy apartment and drives an expensive Mercedes convertible, said prosecutor Kathryn Warma. Prosecutors are seeking to have him forfeit $773,000 (euro576,005) they say he made from his business, Newport Internet Marketing Corp.

A public defender who represented him for Wednesday’s hearing declined to comment.

Prosecutors say Soloway used computers infected with malicious code to send out millions of junk e-mails since 2003. The computers are called ”zombies” because owners typically have no idea their machines have been infected.

He continued his activities even after Microsoft won a $7 million civil judgment against him in 2005 and the operator of a small Internet service provider in Oklahoma won a $10 million judgment, prosecutors said.

U.S. Attorney Jeff Sullivan said this case is the first in the country in which federal prosecutors have used identity theft statutes to prosecute a spammer for taking over someone else’s Internet domain name. Soloway could face decades in prison, though prosecutors said they have not calculated what guideline sentencing range he might face.

Soloway used the networks of compromised computers to send out unsolicited bulk e-mails urging people to use his Internet marketing company to advertise their products, authorities said.

People who clicked on a link in the e-mail were directed to his Web site. There, Soloway advertised his ability to send out as many as 20 million e-mail advertisements over 15 days for $495 (euro368), the indictment said.

Soloway remained in federal detention pending a hearing Monday.

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