Michigan Woman Pleads Guilty for Involvement in a Major Spam Operation

Judy M. Devenow, 56, of Lansing, Michigan, has pleaded guilty for assisting notorious spammer Alan M. Ralsky orchestrate a global complex spam and fraud operation back in 2004. According to her plea agreement, she is facing a maximum of 41 months in prison and a fine of $7,500.

A press release from Acting United States Attorney Terrence Berg indicates that the woman “pleaded guilty to Conspiracy, Fraud in Connection with Electronic Mail ('CAN SPAM'), Mail and Wire Fraud, along with Aiding and Abetting Electronic Mail Fraud”.

During 2004 and 2005, while working for Alan Ralsky, Devenow personally transmitted or convinced others to send millions of spam e-mails. The e-mails were promoting the stock of several Chinese companies like CDGT, WWBP, CWTD and PGCN. The purpose was to artificially inflate their stock value in what is known as a “pump and dump” stock market fraud operation. It's estimated that in the summer of 2005 alone, the scheme netted $3 million.

According to the authorities, the operation was very complex in nature as the defendants used the latest techniques available at the time in order to evade spam filters and blockers. The e-mails had fake headers and were sent through proxies set up on infected computers that formed a botnet.

The spam fighting organization, Spamhaus explained that they used “innocent people's virus infected PCs to do this and also forge the addresses of innocent people onto the spam's 'From:' line ('spoofing') causing untold damage and costs“. They also noted that according to Devenow's own statements, her cut was $150,000. Meanwhile, The Register reports that Richard E. Zuckerman, Devenow's lawyer said that the prosecutors had agreed to make a recommendation to the judge in order for her to get only a 15 to 21 months prison sentence because she also agreed to testify against her former associates.

Acting United States Attorney Terrence Berg, commented that “using the Internet to manipulate the stock market through spam e-mail campaigns is a serious crime. This defendant played a significant role in the Alan Ralsky spamming conspiracy, which is charged with sending e-mail through proxy computers, using false e-mail headers, and touting Chinese penny stocks”. Francis A. Tribble, of Los Angeles, California, another person indicted in this case, is also expected to plead guilty.