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AG Reilly Files Lawsuit, Obtains Emergency Order Shutting Down Internet Spam Gang Believed to Be One of the World’s Largest Spam OperationsSpammers use elaborate network to sell counterfeit prescription drugs, pirated software, and pornography May 11, 2005 CONTACT: SARAH NATHAN (617) 727-2543 BOSTON – Attorney General Tom Reilly today obtained an emergency court order shutting down dozens of websites allegedly operated by a sophisticated ring of Boston area “spammers” who transmit millions of unsolicited, deceptive email messages to lure consumers into buying unapproved counterfeit drugs, pirated software, and pornography. Attorneys from AG Reilly’s Consumer Protection and Antitrust Division (CPAD) today filed a lawsuit against Leo Kuvayev and six other individuals with Massachusetts ties accused of running an elaborate “spam” operation in violation of state and federal consumer protection laws. Also today, Suffolk Superior Court Judge Ralph D. Gants granted AG Reilly’s request for an emergency court order that effectively shuts down multiple websites linked to Kuvayev and the other defendants as well as two Internet companies. Kuvayev, the ring-leader, lists a Newton address as his residence, and he and his associates use a Boston post office box address for their business operations. “The numbers are staggering,” AG Reilly said. “Leo Kuvayev and the other members of his so-called ‘Internet Spam Gang’ are unleashing millions of unsolicited messages on consumers every day.” AG Reilly added, “This type of spam is more than just an annoyance to consumers. It poses a real danger to people who may be fooled into buying counterfeit versions of prescription drugs or unwittingly open email links to sexually explicit websites.” The defendants named in today’s suit include Kuvayev, Vladislav Khokholkov, Anna Orlova, Pavel Tkachuk, Michelle Marco, Dennis Nartikoev, Pavel Yashin and two companies: 2K Services, Ltd., and Ecash Pay, Ltd. All of these individuals, according to the complaint, have worked in some capacity for either 2K Services or Ecash Pay, which are unincorporated and list the same Massachusetts post office box address as their place of business. According to AG Reilly’s complaint, Kuvayev’s scheme involves a complicated web of Internet sites and domain names selling a variety of illegal products including counterfeit drugs, pirated software, pornography, mortgage loans and phony designer watches. While the exact number of emails the defendants have sent out is unknown, they are likely responsible for disseminating hundreds of millions of unsolicited messages to consumers and businesses in Massachusetts and across the United States. Through the use of trap email accounts, set up for the express purpose of determining the names and identity of spammers, Microsoft officials collected more than 45,000 spam messages believed to be from the Internet Spam Gang between June 12 and July 4, 2004. AG Reilly’s investigation, coupled with information provided by the Microsoft Corporation, found that Kuvayev and the defendants regularly and rapidly shifted domain names and websites to different Internet addresses. By following the domain names through several of these shifts, uncovering more domain names linked to identical websites, and obtaining registration information from website hosting companies, investigators were able to determine the identity of Kuvayev and others and link them to websites selling counterfeit prescription drugs, pirated software, mortgage loan offers, counterfeit Rolex watches, and pornography. The Internet Spam Gang’s operations have been tracked to Russia and other countries overseas, with domain names registered in Monaco, Australia and France, and computer servers located in China, Korea, Brazil and Taiwan. Investigators used a variety of tools to track down the Internet Protocol (IP) addresses and web hosting companies the spammers use to post and maintain many of their websites. Kuvayev and his associates, according to AG Reilly’s complaint, are able to send millions of unsolicited emails by recruiting “affiliates” who also generate and transmit emails that link consumers to Kuvayev’s websites. Kuvayev is able to track website hits attributed to emails generated by these affiliates, and the complaint alleges, compensate the affiliates based on the email and website traffic they generate. |