When techies become criminals? $100 Million 'scareware' CEO Was Already a Fugitive

The CEO of a company accused of making more than US$100 million selling harmful "scareware" antivirus products was already a fugitive from U.S. authorities, following his arrest in 2008 on criminal counterfeiting charges. Shaileshkumar "Sam" Jain is one of three men who were charged by the U.S. Department of Justice on Wednesday for allegedly operating a massive scareware distribution ring. Jain ran a Ukrainian company called Innovative Marketing, which prosecutors say sold an astounding 1 million copies of fake antivirus products such as WinFixer, Antivirus 2008 and VirusRemover 2008. The company would set up fake advertising agencies with names such as BurnAds and NetMediaGroup, and then buy online advertising, pretending that it was for legitimate buyers, prosecutors say. These ads would be programmed to deliver scary-looking pop-up windows straight to users' desktops. The windows would typically look like Windows error messages or security alerts. To dismiss them, the victim would have to pull out a credit card and pay between $30 and $70 to buy Innovative Marketing's dubious products, prosecutors say. Before the scareware came the fake Symantec software. Prosecutors allege that in 2003 and 2004, Jain operated a handful of Web sites -- Discountbob.com, shopenter.com, winantivirus.com and others -- that all sold fake Symantec products. Jain allegedly drummed up new business by spamming victims or using pop-up ads to flog the fake software, which was then mailed out by someone identified in court documents as "J.R." of Amelia, Ohio -- presumably James Reno. Profits from the businesses -- which took in more than $100 million from victims in 60 countries -- were funneled offshore, prosecutors say. http://www.pcworld.com/article/197527/100_million_scareware_ceo_was_already_...
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