A Michigan man faces up to 3.5 years in prison for his part in a penny stock spam scheme that involved the sending of millions of emails.  63-year-old Alan Ralsky and his son-in-law Scott Bradley faced a 41 count indictent under the CAN-SPAM Act. Ralsky also pleaded guilty to stock fraud and money laundering.

          “Alan Ralsky was at one time the world’s most notorious illegal spammer,” U.S. Attorney Terrence Berg said after the plea. “Today Ralsky, his son-in-law Scott Bradley, and three of their co-conspirators stand convicted for their roles in running an international spamming operation that sent billions of illegal e-mail advertisements to pump up Chinese ‘penny’ stocks and then reap profits by causing trades in these same stocks while others bought at the inflated prices.”

The pair and nine others operated a penny stock pump and dump scheme. They sent out unsolicited emails to millions hyping a worthless Chinese penny stock. When unsuspecting victims fell for the come ons and bought shares, it artificially inflated the stock’s worth. Ralsky and the others then sold their shares for huge profits and left their victims hanging.

They used forged headers, proxy computers and domains registered under fake names to send their spam without being detected. Prosecutors plan to recommend 35 to 43 months in prison, a term Ralsky agreed to as part of his plea deal. The deal also includes a fine of up to $1 million and an agreement on Ralsky’s part to assist government in future investigations.