Aussie net scammers stung after $1.2m haul

 

"Quacks" shut down by joint U.S.-Australia investigation.

Two internet scammers from NSW have had a series of "quack" medical websites shut down in a cooperative effort by U.S. and local authorities.

The Australian Competition and Consumer Commission said it had obtained final orders in the Federal Court against two individuals, Leanne Rita Vassallo and Aaron David Smith of Cecil Hills "for false, misleading and deceptive conduct in relation to a health cure scam".

The scam involved a series of websites that offered electronic books purported to describe cures to medical conditions including acne, asthma, multiple sclerosis, fibromyalgia, menopause and prostate cancer.

More than 60,000 books were sold internationally, netting the scammers over US$1 million ($1.2 million), according to evidence provided to the Court.

"The ACCC's expert evidence was to the effect that the treatments would not have any therapeutic benefits for, or medical efficacy in the treatment of the health conditions," the commission said.

The scam was brought to the ACCC's attention by the Washington State Attorney General's Department.

An investigation was carried out by the ACCC, Washington and the NSW Police.

"[Washington investigators] have also filed their own proceedings against Ms Vassallo and Mr Smith in the King County Court, Washington State," the ACCC said.

The ACCC had already obtained interlocutory injunctions against the scammers already that required them to take down the websites.

At the final hearing on August 20, Justice Graham, in an ex tempore [at the time] judgment, found the pair had engaged in false, misleading and deceptive conduct.

He described them as "purveyors of quack medical advice and of quack medicine", according to an ACCC statement.

"This is a warning to all internet scammers," ACCC chairman Graeme Samuel said.

"It is becoming more and more common for agencies such as the ACCC to work with international agencies to bring about the demise of international scams like this".


Aussie net scammers stung after $1.2m haul
"I'm thinking recovery via the US proceedings since they referred the case to the ACCC to shut them down in the first instance...."
By rycrozier
 
 
 
Comments: 2
Slatts
Aug 26, 2009 8:24 PM
Did I miss something there?
They were made to shut the site down?
Nothing about any fines or confiscations or refunding of the $1.2 M?
Did they get to keep it?
rycrozier
Aug 26, 2009 8:34 PM
I'm thinking recovery via the US proceedings since they referred the case to the ACCC to shut them down in the first instance....
Comments have been disabled for this article.
 
 
 
Top Stories
Vito Forte: A CIO for tough times
Fortescue Metals CIO talks vendor management and innovation.
 
Telstra shifts BigPond email to Windows Live
All data to be migrated to Microsoft cloud.
 
Vodafone Australia churn nears half a million for 2011
British joint owners 'not pleased'.
 
Sign up to receive iTnews email bulletins
   FOLLOW US...

Latest VideosSee all videos »

Latest Comments
Polls
Would you be concerned about your business' email data being hosted offshore?

   |   View results
Yes
  85%
 
No
  15%
TOTAL VOTES: 229

Vote