Spammer Discovers His Insurance Policy Doesn't Cover $6 Million Spam Fines

from the just-so-you-know... dept

Scott Richter was a bigtime spammer, who was so proud of being a spammer, at one point he planned to release his own line of "Spamking" clothing (seriously). In 2005, though, he filed for bankruptcy (even though it appeared his spamming operations were still rolling in cash. That same year, there were reports that Richter had actually gone legit and he was actually removed from the infamous ROKSO list of known spammers (not an easy list to get removed from). Except... sometimes it's just difficult to stay away. MySpace sued Richter in 2007 and won a $6 million award against him (though, Richter claimed victory since MySpace wanted much more).

Now, Michael Scott alerts us to the news that Richter tried to have his insurance company pay the fines, but a court has now said that these fines were excluded from the policies, and thus Richter is on the hook for the fines instead. That seems like a good thing. It would be pretty troubling if spammers were able to buy insurance against getting fined.

Reader Comments (rss)

(Flattened / Threaded)

  1. identicon
    yozoo, Aug 3rd, 2009 @ 11:03am

    dumb ass

    he should have collateralized the risk into dividend paying bonds then sold them as securities . . . what a moron

    reply to this | link to this | view in thread ]

  2. icon
    Travis (profile), Aug 3rd, 2009 @ 11:38am

    This guy sounds like a real winner.

    reply to this | link to this | view in thread ]

  3. identicon
    DanOfSoCal, Aug 3rd, 2009 @ 11:41am

    Re: dumb ass

    That's hilarious!

    reply to this | link to this | view in thread ]

  4. identicon
    James, Aug 3rd, 2009 @ 12:07pm


    I'd absolutely love to see more rulings like this against spammers.. that and maybe a stoning ;)

    reply to this | link to this | view in thread ]

  5. identicon
    Anonymous Coward, Aug 3rd, 2009 @ 12:09pm


    Richter is still spamming. He's gotten somewhat better about hiding behind front companies, but he's still doing it. And he's running a registrar (Dynamic Dolphin) in part to reduce the cost of the tens of thousands of domain names his activities require.

    reply to this | link to this | view in thread ]

  6. icon
    Otm Shank (profile), Aug 3rd, 2009 @ 1:39pm

    Not necessarily troubling

    It wouldn't be so troubling if you could buy insurance against being fined. Who would underwrite something like that, however, if your business model is based on spamming people?

    reply to this | link to this | view in thread ]

  7. identicon
    Ryan, Aug 3rd, 2009 @ 2:16pm

    Re: Not necessarily troubling

    How would that work? Anybody that provided that would just be inviting insurance "fraud", like a provider that offered fire insurance that covered setting your own place on fire. I think it has less to do with the risks of a business model than on the fact that a spammer would just calculate the expected fine and buy it if it was cheaper than the fine. Probability and risk don't really come into play.

    reply to this | link to this | view in thread ]

  8. identicon
    ted112, Nov 20th, 2009 @ 6:40am

    This is funny

    LOL, this is a hilarious story. I agree with Travis' comments about this guy: "This guy sounds like a real winner." Though he is playing the game by breaking the rules, if he can get himself out of the trouble he is in now, overcome the $6 million dollar fine, and find more ways of making more money and being under the radar, there are few things that will stop him. He should've looked for insurance agents and then talked to a broker about getting insurance for spam fraud! LOL

    reply to this | link to this | view in thread ]

  9. identicon
    James, Aug 28th, 2010 @ 6:53am

    this is funny story. He definitely needed to look into insurance directory and talk to one of the guys!

    reply to this | link to this | view in thread ]

  10. identicon
    Sammy, Mar 22nd, 2013 @ 6:15am

    Insurance company to pay out for his spamming? This guy is more silly than he sounds. Serves him right to pay fines for spamming so much!


    reply to this | link to this | view in thread ]

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