[ISN] Man charged with hiring pump-and-dump spam botnet

From: InfoSec News <alerts_at_private>
Date: Tue, 22 Mar 2011 00:41:55 -0600 (CST)
http://www.computerworld.com/s/article/9214884/Man_charged_with_hiring_pump_and_dump_spam_botnet

By Robert McMillan
IDG News Service
March 21, 2011

A Texas man was charged Monday by the U.S. Department of Justice with 
helping to inflate the prices of penny stock companies by promoting them 
with a spam-spewing botnet of hacked computers.

Christopher Rad, of Cedar Park, Texas, faces a maximum sentence of five 
years in prison and a $250,000 fine on charges that he acted as a 
middleman between unscrupulous stock promoters and Russian hackers, who 
operated the botnet.

Rad allegedly worked with another man, James Bragg, to make the 
companies' stock-prices move in a scheme that ran between November 2007 
and February 2009. In October 2010, Bragg pleaded guilty to his role in 
the scheme. No date has been set for his sentencing.

Prosecutors say that the two men promoted penny stocks for now-defunct 
companies such as RSUV (Remote Surveillance Technologies) and VSHE ( 
VShield Software). They did this not only by using the botnet to spam 
would-be investors, but also by having their Russian hackers take over 
brokerage accounts and purchase the stocks they were pumping, so it 
would look like the companies had market momentum.

[...]


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Received on Mon Mar 21 2011 - 23:41:55 PDT

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