Intellectual Property Law

Man Indicted for ?Cyber-Extortion? Threat Against Insurance Firm

By David Kravets

A California man was hit with an extortion charge this week for allegedly threatening to send out millions of e-mails criticizing his insurance company, if the firm didn’t pay him as much as $3 million.

Anthony Digati, 52, faces a maximum two-year prison term if convicted of charges the Federal Bureau of Investigation is calling “cyber-extortion” (.pdf).

The authorities said Digati erected a website to damage the reputation of New York Life unless it returned his $50,000 premium, and an extra $150,000 for good measure, by a certain date. If the deadline was not meant, the price would climb to $3 million, according to the indictment unsealed late Thursday.

The bureau’s statement said that Digati threatened on his website to “make false public statements and transmit millions of spam e-mails in an effort to damage the reputation of New York Life and cost the company millions of dollars of revenue.”

The authorities declined comment. Digati, of Chino, California, declined to be interviewed when reached by telephone, as did his attorney.

Digati, who is being charged in New York, remains free on bond in connection with the charge of extortion through interstate communications.

According to Thursday’s indictment, Digati became upset with New York Life after having a claim denied. He registered the domain newyorklifeproducts.com, and sent an e-mail to more than 1,000 employees of the insurer demanding payment, adding that if he didn’t get his money by March 8, “the price will then be $3,000,000.”

He told the company through his website that he has “6 million e-mails going out to couples with children age 25-40, this email campaign is ordered and paid for,” according to the indictment.

“I think you get the idea, I’m going to drag your company name and reputation through the muddiest waters imaginable,” he wrote, according to the indictment. “This will cost you millions in lost revenues, trust and credibility not to mention the advertising you will be buying to counter mine.”

“By the way: Yes, I am crazy. Yes, I am vindictive. Yes, I am extremely upset,” Digati allegedly wrote the company. “Yes, I will do everything that I said. I have absolutely nothing to lose or any fear of retaliation, no judge in the world is going to rule for a $200-billion company when there is a lonely customer that you stole from!”

Photo: chotda

See Also:

• Yelp Accused of Extortion
• Wisconsin Teen Gets 15 Years for Facebook Sex-Extortion Scam
• Convicted Hacker Charged With Extortion After Attack on Model?s MySpace Account
• Extortion Plot Threatens to Divulge Millions of Patients’ Prescriptions
• Netscape Dodges Bug, ‘Extortion’ Bullet
• Documents: FBI Spyware Has Been Snaring Extortionists, Hackers for Years

Full post as published by Threat Level on April 23, 2010 (boomark / email).