Contempt Charges Levied Against Notorious Spyware Marketers

WASHINGTON — Two spyware marketers and a company were ordered by a federal judge Thursday to forfeit $550,000 for disobeying a previous court order that barred them from their business practices.

“Spamford” Sanford Wallace, Walter Rines and Rines’ business, Online Turbo Merchant, Inc., were ordered to pay after U.S. attorneys representing the Federal Trade Commission told a U.S. district judge that Rines violated a provision in a 2006 settlement order that required him to post a $500,000 performance bond before downloading or installing computer code or other content that causes the display of ads or collects personal information.

The court granted the FTC’s request to hold Rines’ business partner Wallace in contempt because he had notice of the order and helped Rines collect personal information online without users’ prior consent, in violation of the order.

In its original 2005 complaint, the FTC charged Odysseus Marketing and owner Rines with luring consumers to their MySpace websites by offering free software, including a program that supposedly allowed them to engage in anonymous peer-to-peer file sharing.

The bogus software was bundled with spyware that intercepted and replaced search results and barraged consumers’ computers with popup ads, according to the FTC. The agency charged that the defendants subjected MySpace users to phishing, pagejacking and mousetrapping scams.

In May 2008, MySpace won a $234 million judgment against Wallace and Rines.

And Wallace, earlier this year, was hit with another FTC complaint. Regulators said that he and others were responsible for phishing attacks and CAN-SPAM violations by posting spam messages on Facebook members' walls.

Just last month, Wallace, who has promoted himself as the “original Spam King,” filed Chapter 7 bankruptcy.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

UPDATED: Supreme Court Rules Against Adult Industry in Pivotal Texas AV Case

The U.S. Supreme Court on Friday issued its decision in Free Speech Coalition v. Paxton, striking a blow against the online adult industry by ruling in support of Texas’ controversial age verification law, HB 1181.

North Carolina Passes Extreme Bill Targeting Adult Sites

The North Carolina state legislature this week ratified a bill that would impose new regulations that industry observers have warned could push adult websites and platforms to ban most adult creators and content.

Supreme Court Ruling Due Friday in FSC v. Paxton AV Case

The U.S. Supreme Court will rule on Friday in Free Speech Coalition v. Paxton, the adult industry trade association's challenge to Texas’ controversial age verification law, HB 1181.

Ofcom: More Porn Providers Commit to Age Assurance Measures

A number of adult content providers operating in the U.K. have confirmed that they plan to introduce age checks in compliance with the Online Safety Act by the July 25 deadline, according to U.K. media regulator Ofcom.

Aylo Says It Will Comply With UK Age Assurance Requirements

Tech and media company Aylo, which owns various adult properties including Pornhub, YouPorn and Redtube, plans to introduce age assurance methods in the United Kingdom that satisfy government rules under the Online Safety Act, the company has announced.

Kyrgyzstan Parliament Approves Measure Outlawing Internet Porn

The Supreme Council of Kyrgyzstan on Wednesday passed legislation outlawing online adult content in the country.

Trial Set for Lawsuit by U Wisconsin Professor Fired Over Adult Content

A trial date of June 22, 2026, has been set for the civil lawsuit filed by veteran communications professor Joe Gow against the University of Wisconsin board of regents, which fired him for creating and appearing in adult content.

New UK Task Force Meets to Target Adult Content

The architect of an influential report that recommended banning adult content deemed “degrading, violent and misogynistic” has convened an “Independent Pornography Review task force” aimed at translating that report’s findings into action in the U.K.

11:11 Creations Launches Affiliate Program

11:11 Creations principal Alicia Silver has launched 11:11 Cash for creators and affiliates.

Pineapple Support, Pornhub to Host 'Self Love' Support Group

Pineapple Support and Pornhub are hosting a free online support group for performers to develop self-love.

Show More