Con artist faces jail term for sending millions of e-mails

Published on Friday 5 November 2004 01:05

A MAN who sent millions of junk e-mails offering phoney get-rich schemes is facing nine years in prison after becoming the first person in the United States to be convicted under tough new anti-spam laws.

Jeremy Jaynes, 30, and his sister, Jessica DeGroot, 28, who were compared to modern-day snake-oil salesmen, were convicted on Wednesday of three counts each of sending e-mails with fraudulent and untraceable routing information.

The pair used the internet to peddle such rubbish as a "FedEx refund processor" that supposedly allowed people to earn $75 (40) an hour working from home.

In one month alone, Jaynes received 10,000 credit card orders of $39.95 each for the processor.

A prosecutor, Gene Fishel, told the court in Leesburg, Virginia: "This is a snake-oil salesman in a new format."

Another prosecutor, Russell McGuire, said Jaynes amassed a net wealth of $24 million peddling worthless products such as the refund processor, a "penny stock picker" and an internet history eraser.

"He’s been successful in ripping people off all these years," Mr McGuire said.

Jurors recommended that Jaynes, 30, be sentenced to nine years in prison and fined DeGroot, 28, $7,500.

Prosecutors had asked the jury to impose a maximum sentence of 15 years in prison for Jaynes, and to consider a jail term for his sister, who they acknowledged was less culpable.

Defence lawyers asked the jury not to send the defendants to jail.

David Oblon, representing Jaynes, argued it was inappropriate for prosecutors to seek an "excessive punishment", given that the prosecution was the first under Virginia law. He also noted that his client, a North Carolina resident, would have been unaware of the Virginia law.

Mr Oblon called the jury’s recommendation of nine years in prison shocking. "Nine years is absolutely outrageous when you look at what we do to people convicted of crimes like robbery and rape," he said.

When Jaynes and DeGroot are formally sentenced in February, the judge, Thomas Horne, will have the option of reducing the jury’s sentence or leaving it intact. He cannot increase it.

Mr Horne also has not yet ruled on an earlier motion asking that the cases be dismissed. He said during the trial that he had a hard time allowing the prosecution of DeGroot and another defendant, Richard Rutkowski, who was acquitted, to go forward to the jury.

Mr Oblon said Jaynes "is convinced of his innocence" and expects the conviction will be set aside eventually.

Virginia prosecuted the case under a law that took effect last year and that bars people from sending bulk e-mail that is unsolicited and masks its origin. Many computer firms, such as AOL, are based in the state.