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A California man has been indicted for attempting to extort approximately $200,000 or more from an insurance company by threatening to spam it and ruin its reputation by making false public statements in emails and on a website he created.
According to the indictment returned yesterday by a grand jury and other documents filed in court, Anthony Digati sought the return of his insurance premiums from New York Life after he bought variable universal life insurance and became unhappy with the performance of that insurance. New York Life advised Digati those premiums would not be returned.
In the end of February, Digati emailed employees, executives and one board member at New York Life and directed them to his website and stated, “I HIGHLY suggest you visit this website and contact me afterwards.” The website included, among other things, the following text:
* These things, unless you honor the below claim, WILL HAPPEN on March 8, 2010.
* As you have denied my claim I can only respond in this way. You no longer have a choice in the matter, unless of course you want me to continue with this outlined plan. I have nothing to lose, you have everything to lose.
* My demand is now for $198,303.88. This amount is NOT negotiable, you had your chance to make me an offer, now I call the shots.
* I have 6 MILLION emails going out to couples with children age 25-40, this e-mail campaign is ordered and paid for. 2 million go out on the 8th and every two days 2 million more for three weeks rotating the list. Of course it is spam, I hired a spam service, I could care less, The damge [sic] will be done.
* I am a huge social networker, and I am highly experienced. 200,000 people will be directly contacted by me through social networks, slamming your integrity and directing them to this website within days.
* I think you get the idea, I am going to drag your company name and reputation, through the muddiest waters imaginable. This will cost you millions in lost revenues, trust and credibility not to mention the advertising you will be buying to counter mine. Sad thing is it's almost free for me!
* The process is in motion and will be released on March 8th, 2010. If you delay and the site goes live, The price will then be $3,000,000.00.
On Feb. 24, 2010, Digati sent another email to New York Life employees, noting that the “[c]lock is ticking” and provided another link to the website.
Digati is charged with one count of extortion through interstate communications. If convicted, he faces a maximum sentence of two years in prison and a maximum fine of $250,000 or twice the gross pecuniary loss or gain derived from the offense.
The indictment also seeks the forfeiture of Digati’s computer and other equipment seized from him at the time of his March 6, 2010 arrest.
