Idaho woman wanted in $163 million internet scam
BOISE, Idaho (AP) - A former Idaho woman believed to be hiding out in the Caribbean owes the U.S. government $163 million, part of a federal civil judgment earlier this year stemming from an Internet scam.
The Idaho Statesman reports Kristy Marie Ross was a student and athlete at high schools in Boise and Eagle before becoming involved in an Internet scam in the early 2000s.
According to the Federal Trade Commission, she participated in an Internet scheme in which people were frightened into buying virus-protection software they didn't need. The verdict came in a judgment in September in U.S. District Court in Maryland.
"They scared millions of people," said Paul Spelman, a Washington, D.C.-based attorney with the Federal Trade Commission. "Do we expect to get the $163 million from her? No. What we try to do is get whatever we can from her."
Others involved in the business, called Innovative Marketing, have paid some $16 million in settlements. But Ross remains on the lam, possibly on the Caribbean island of Nevis.
Her former boyfriend, Sam Jain, is also an international fugitive targeted by the FBI's cybercrimes unit.
Ross' lawyer, Carolyn Gurland, has appealed the federal court verdict, claiming federal officials are targeting Ross unfairly.
The Chicago lawyer, who represented former Illinois Gov. Rod Blagojevich, said Ross is "one of the most amazing people I've ever been privileged enough to meet" - not the high-tech con artist whom the FTC alleges bilked thousands of Internet users for millions of dollars.
Ross was a young woman who worked hard to follow her boyfriend's orders and ended up becoming a victim herself, Gurland said, adding that problems developed when the company hired Ukrainian assistants who resorted to scare tactics that ultimately drew the scrutiny of the FTC.
"She was a baby - she had no idea what the hell these boys were doing," Gurland said. "She was just diligent and smart and hard-working. She tried to rein it in, but she couldn't do it all."
Innovative Marketing pushed advertisements that claimed users had hundreds of viruses or illegal files that needed cleansing and offered software for $39.95 or more. But installing the product didn't help; it gave the user more scareware ads, according to the FTC.
In the September verdict, U.S. District Judge Richard Bennett in Maryland wrote that Ross had much more control over the company than Gurland portrayed.
In a 29-page ruling issued Sept. 24, Bennett concluded "her expertise in marketing was touted by her partners and used to deceive and defraud a large number of consumers."
The Idaho Statesman reports Kristy Marie Ross was a student and athlete at high schools in Boise and Eagle before becoming involved in an Internet scam in the early 2000s.
According to the Federal Trade Commission, she participated in an Internet scheme in which people were frightened into buying virus-protection software they didn't need. The verdict came in a judgment in September in U.S. District Court in Maryland.
"They scared millions of people," said Paul Spelman, a Washington, D.C.-based attorney with the Federal Trade Commission. "Do we expect to get the $163 million from her? No. What we try to do is get whatever we can from her."
Others involved in the business, called Innovative Marketing, have paid some $16 million in settlements. But Ross remains on the lam, possibly on the Caribbean island of Nevis.
Her former boyfriend, Sam Jain, is also an international fugitive targeted by the FBI's cybercrimes unit.
Ross' lawyer, Carolyn Gurland, has appealed the federal court verdict, claiming federal officials are targeting Ross unfairly.
The Chicago lawyer, who represented former Illinois Gov. Rod Blagojevich, said Ross is "one of the most amazing people I've ever been privileged enough to meet" - not the high-tech con artist whom the FTC alleges bilked thousands of Internet users for millions of dollars.
Ross was a young woman who worked hard to follow her boyfriend's orders and ended up becoming a victim herself, Gurland said, adding that problems developed when the company hired Ukrainian assistants who resorted to scare tactics that ultimately drew the scrutiny of the FTC.
"She was a baby - she had no idea what the hell these boys were doing," Gurland said. "She was just diligent and smart and hard-working. She tried to rein it in, but she couldn't do it all."
Innovative Marketing pushed advertisements that claimed users had hundreds of viruses or illegal files that needed cleansing and offered software for $39.95 or more. But installing the product didn't help; it gave the user more scareware ads, according to the FTC.
In the September verdict, U.S. District Judge Richard Bennett in Maryland wrote that Ross had much more control over the company than Gurland portrayed.
In a 29-page ruling issued Sept. 24, Bennett concluded "her expertise in marketing was touted by her partners and used to deceive and defraud a large number of consumers."
Why would she choose my country to spoil its reputation?
Think of how many billions was needlessly spent on Y2K "protection"...Â
That's what money does. In an economy where goods are traded for other goods or services, it's much harder to run scams like these. Imagine, you give me one rabbit and I will clean your PC. Then, if I am successful, what do I do with all the rabbits? It's a brain fart, I know ;-)
 @Komo Dragon For a pig I will fix your computer, laptop, iPad, iPod, and your car.
Deal?
 @Larry*X*K  @Komo Dragon LOL I don't eat pork, but I'd do it for 5 drawn chickens!
These scammers took over peoples computers and messages would pop up saying the PC was infected and they would loose all their Data. They said they would clean the PC for $40. This was a total SCAM not capitalism.
They both should be hunted down and pay back every dime and do a little time .
http://www.time.com/time/business/article/0,8599,1998055,00.html
 @Ronn I just wrote a long post that says the same thing, but then I saw yours that says it better. The victims are often your parents generation, otherwise smart people who just weren't raised with computers. It's straight-up fraud, no question about it; people pay for a product they never get.
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 That being said, I would rather have them do jail time for fraud and pay fines that this phony civil judgment money-grab by the government. I don't think that's the right way to go about it.Â
Just capitalism at work. How many people get suckered into insurance, credit counseling and other scams they don't need. Almost everyone. The people that buy these products just have too much disposable income and just become easy suckers.
Run Kristy Marie, RUN!
 @Harrison into a city bus
 @Harrison LOL Time to break out the T-shirt press
The idiots who bought the software and were convinced by the scare tactics need to take responsibility. What files are on their computers that they believed were illegal and needed purging? I don't expect to recoup my money if I ever fall for a money wiring scam, because it would be the price of my own stupidity.
 @SoTweetie For sure, just like I told the Nigerian Prince Oyengo Boyngo the other day! Apparently, his parents died in a mysterious manner while on holiday and his funds have been frozen by the Arch Minister Peppto Bismolo. He has promised that should I front him some living expense money now, I will be awarded the sum of $1.8 million UK pounds! He assured me it was not some internet scam, although I am not sure why he needs my mother's maiden name as well as my bank account and PIN numbers.Â
 @Getov Mylon  @SoTweetie Nigerian scam is still alive and kicking. I remember my first contact, it was by snail mail not email. 15 years ago.
@Komo Dragon I get an email from them 3-4 times a week.
 @Getov Mylon  @SoTweetie So, did you make up the names or was the scammer really that dumb?
 @stamperzann  @SoTweetie The story is apocryphal.Â
I don' t agree with this or for making judgments against people that can never be fulfilled. She has no choice but to run and hide.