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From: InfoSec News (alertsinfosecnews.org)
Date: Thu Mar 19 2009 - 01:16:15 CDT
By Austin Modine in San Francisco
19th March 2009
When running a botnet to spam millions with emails touting your illegal
stock-scalping scheme, it's rarely a good idea to include a US
Securities and Exchange Commission lawyer's work address on the mailing
Alas, these kinds of oversights sometimes need to be learned the hard
way, as allegedly is the case of two Texas men who recently settled a
civil lawsuit with the SEC.
Darrel Uselton and his uncle Jack Uselton were charged with fraud by US
regulators in 2007 based on claims they orchestrated a series of spam
email campaigns using an array of botnets. The Useltons allegedly
flooded inboxes across the country with spam emails pitching
near-worthless penny stock using baseless price projections and other
According to the Commission's complaint, the Useltons bilked investors
out of more than $4.6m between May 2005 and December 2006 with their
fraudulent activities. The SEC said the Useltons typically received
unrestricted shares from penny-stock companies for little or no money in
return for purported promotional activities.
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