A federal judge has ordered an Arizona couple to pay more than $236 million for sending millions of spam messages to a small
Iowa ISP.
Henry Perez and his wife Suzanne Bartok were ordered to pay the damages -- amounting to $10 per bulk e-mail -- following a
four-year court case in which the judge found that they had bombarded CIS Internet Services of Clinton, Iowa, over a four-month
period in 2003.
According to a ruling by Judge John Jarvey of Iowa federal court, Perez and Bartok used a program called Bulk Mailing 4 Dummies
to send millions of e-mails to CIS servers, forcing the company to undergo an expensive server upgrade and to dedicate three
servers to blocking spam. (Compare antispam products)
Starting in 2001, CIS gradually became overwhelmed by unsolicited e-mail that came from a variety of sources, according to
company owner Robert Kramer III. By 2003, the company was processing about 500 million spam messages every day.
Kramer thinks that he may have been hit with extra spam because his company's cis.net domain was confusingly similar to the
cis.com domain once used by CompuServe, at one time one of the largest ISPs in the U.S.
The attacks cut into CIS's bandwidth, making it harder for customers to surf the Web and ultimately costing Kramer a lot of
business. His company's client base dropped from about 5,000 customers in 2001 to just 1,200 by late 2004.
"There were millions of e-mails being delivered to us for each spam campaign to users that didn't exist on our servers," Kramer
said in an interview. "It was do or die: it wasn't just a nuisance for us."
Perez and Bartok had argued that they were not spammers and that the e-mail messages they used were legitimately generated,
but the judge didn't buy it, writing in his Sept. 30 order that their explanation was simply "not credible."
"The court simply does not believe Mr. Perez or Ms. Bartok," Jarvey wrote.
Since the dark days of 2003, CIS has filed suit against many spammers and so far it has received about 10 judgments in its
favor, Kramer said. Collecting the money has proven to be difficult, however. Many of the spammers have gone out of business,
moved their money overseas or simply hidden from sight, he said.
In fact, Kramer was awarded a judgment against Perez and Bartok's company, AMP Dollar Savings, in late 2004, but he has so
far been unable to collect.
The IDG News Service is a Network World affiliate.