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Topic # 29092 23-Dec-2008 09:01 Send private message

So what does everybody think of yesterday's settlement with the kiwi spammers? Is a $100k fine for being part of the world's largest spam email group nothing more than a polite telling off?

As I see it spamming now effectively legal in NZ providing you pay Internal Affairs $100k for a licence to spam. There are millions to now be made basing your spam haven in NZ.

One thing that the NZ media seems to have completely missed is that these guys were fined US$2.2 million by the FTC in 2005 for spamming. They must be laughing all the way to the bank when Internal Affairs here are celebrating for their first succesful prosecution and they only have to pay $100k!

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  Reply # 186018 24-Dec-2008 18:52 Send private message

This is the official press release issued by the Anti-Spam Compliance Unit, Department of Internal Affairs:


One of three New Zealand citizens has admitted his part in a major international spamming operation and will pay a financial penalty of $100,000 plus costs of $7666.

Lance Atkinson, who lives in Pelican Waters, Queensland, sought settlement soon after the Department of Internal Affairs announced court proceedings against him in October. Two other defendants, his brother Shane Atkinson, and courier Roland Smits, of Christchurch are contesting the claim and have filed statements of defence. Lance Atkinson is still to face court action in the United States brought against him by the Federal Trade Commission.

The settlement with Lance Atkinson was contained in a judgement of the Hon Justice French, in the High Court in Christchurch, issued on Friday (Dec 19).

Internal Affairs’ Anti-Spam Compliance Unit investigated the operation resulting in the first court action under the Unsolicited Electronic Messages Act 2007. More than two million unsolicited electronic messages were sent to New Zealand computers between 5 September 2007 and 31 December 2007. These emails marketed Herbal King, Elite Herbal and Express Herbal branded pharmaceutical products, manufactured and shipped by Tulip Lab of India, through a business known as the Genbucks Affiliate Programme. This business was operated by Genbucks Ltd, a company incorporated in the Republic of Mauritius.

Justice French said in her judgement that the spamming operation was said to be one of the largest in the history of the internet and its impact on New Zealand was therefore proportionately large.

The maximum penalty provided in the UEM Act for an individual is $200,000 but Justice French said Lance Atkinson was entitled to a substantial discount because of his co-operation and candour with authorities at an early stage, his undertaking to comply with the Act and the fact that the spamming began before it became illegal.

Internal Affairs’ Anti-Spam Compliance Unit Manager, Joe Stewart, welcomed the decision.

“This is a first under the new law and is just reward for the effort put in by our investigators and overseas agencies, particularly the FTC,” Joe Stewart said. “The negative effects of spam are significant and far reaching and it’s pleasing to know there’s at least one less spammer plaguing the internet.”





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