New Zealanders fined for international spam operation

Nov 2, 2009, 2:28 GMT

   Wellington - Two New Zealanders have been fined for their roles in the biggest pharmaceutical spamming operation in the history of the internet, officials said on Monday.

   They were part of a business based in Christchurch that sent more than 2 million unsolicited emails promoting Indian-made herbal products to New Zealand addresses over four months in 2007, the Department of Internal Affairs reported.

   Shane Atkinson was fined 100,000 New Zealand dollars (71,600 US dollars) and Ronald Smits 50,000 New Zealand dollars in the Christchurch High Court last week, the department said in a statement.

   The operation paid affiliates around the world to send spam emails marketing Herbal King, Elite Herbal and Express Herbal branded pharmaceutical products, which were manufactured and shipped by Tulip Lab of India.

   The business was operated by Genbucks Ltd, a company incorporated in Mauritius, the statement said.

   The department's Deputy Secretary Keith Manch said officials worked with overseas agencies, including the United States Federal Trade Commission (FTC), on the operation, bringing prosecutions under New Zealand's Unsolicited Electronic Messages Act.

   Three other New Zealanders, including Atkinson's brother, Lance Atkinson, of Queensland, Australia, have also been fined. Manch said Lance Atkinson is also facing court action in the United States brought by the FTC.

   'Current estimates suggest that around 120 billion spam messages are sent every day,' he said. 'These emails clog up the internet, disrupt email delivery, reduce business productivity, raise internet access fees, irritate recipients and erode people's confidence in using email.'