Spammers ordered to pay $1 billion

DAVENPORT, Iowa – A federal judge has awarded an Internet service provider more than $1 billion in what is believed to be the largest judgment ever against spammers.

Robert Kramer, whose company provides e-mail service for about 5,000 subscribers in eastern Iowa, filed suit against 300 spammers after his inbound mail servers received up to 10 million spam e-mails a day in 2000, according to court documents.

U.S. District Judge Charles Wolle filed default judgments Friday against three of the defendants under the Federal Racketeer Influenced and Corrupt Organizations Act and the Iowa Ongoing Criminal Conduct Act.

AMP Dollar Savings Inc. of Mesa, Ariz., was ordered to pay $720 million and Cash Link Systems Inc. of Miami, Fla., was ordered to pay $360 million. The third company, Florida-based TEI Marketing Group, was ordered to pay $140,000.

“It’s definitely a victory for all of us that open up our e-mail and find lewd and malicious and fraudulent e-mail in our boxes every day,” Kramer said after the ruling.

Kramer’s attorney, Kelly Wallace, said he is unlikely to ever collect the judgment, which was made possible by an Iowa law that allows plaintiffs to claim damages of $10 per spam message. The judgments were then tripled under RICO.

“We hope to recover at least his costs,” Wallace said.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

The Victorian home sits on Whidbey Island. (Alyse Young for The Washington Post)
Whidbey couple thought they found their dream home — then came the bats

The couple had no recourse after unknowingly buying a home infested with thousands of bats.

The Snohomish County Jail is pictured on Thursday, Oct. 26, 2023, in Everett, Washington. (Ryan Berry / The Herald)
Report reveals cause of Everett man’s death in Snohomish County Jail

Terry Crusha was booked into the jail on May 17. He died three days later, part of a string of deaths there.

Boeing workers file into Angel of the Winds Arena to vote on the latest contract proposal from the company on Monday, Nov. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Boeing Machinists prepare to go back to work after strike ends

After voting no twice, 59% of union members approved the latest contract.

Twede’s Cafe is pictured at the corner of Bendigo Boulevard and North Bend Way on Sunday, June 9, 2024, in North Bend, Washington. (Ryan Berry / The Herald)
Relive ‘Twin Peaks’ with cherry pie and damn fine coffee at Twede’s Cafe

The North Bend cafe, known as Double R Diner on the campy cult-classic, serves up nostalgia and a damn good breakfast.

From left to right, Lt. Cmdr. Lyndsay Evans and Lt. Serena Wileman. (Photos provided by the U.S. Navy)
Remains of Whidbey Island pilots to return this week

Lt. Cmdr Lyndsay Evans and Lt. Serena Wileman died in a crash on Oct. 15.

Everett
Everett men arrested in huge bust of Seattle drug ring

On Wednesday, investigators searched 31 locations, but suspects from Lynnwood and Edmonds remained at large, officials said.

Washington Attorney General Bob Ferguson speaks at the Snohomish & Island County Labor Council champions dinner on Tuesday, Oct. 10, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Ferguson, WA Democrats prepare for new era of showdowns with Trump

Gov.-elect Bob Ferguson and Attorney General-elect Nick Brown are readying their legal teams.

Benson Boone (Photo provided by AEG Presents)
Monroe’s Benson Boone snags Grammy nomination for Best New Artist

The Monroe High grad this year has opened for Taylor Swift and won an MTV Video Music Award.

From left to right, Ron Muzzall and Janet St. Clair
Muzzall pulls ahead of St. Clair in tight WA Senate race

Incumbent state Sen. Ron Muzzall, a Republican, led by about 600 votes Thursday night.

Lynnwood
Lynnwood caregiver accused of $674K check fraud

Prosecutors allege Sheila Saluquen defrauded the elderly owner of a car dealership for over a year.

Deborah Rumbaugh
‘Very hostile work environment’: Stanwood-Camano school supe resigns

Superintendent Deborah Rumbaugh said Tuesday she’ll be gone at the end of the school year.

Crews from Reece Construction Company mill asphalt off of Madison Avenue during the beginning of construction on Tuesday, May 16, 2023, in Everett, Washington. (Ryan Berry / The Herald)
Everett shares details on upcoming budget cuts

Street improvements, libraries and communications could see significant cuts as the city tackles a deficit.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.