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July 4th, 2009 at 4:26 pm

Danger! Weight-loss pills

A U.S. district court has ordered members of an alleged international spam ring to give up US$3.7 million that they made while sending out illegal e-mail messages selling weight-loss products and human growth hormone pills. Located in Canada and St. Kitts, they emailed web sites selling an extract of the hoodia gordonii claiming significant weight-loss and a “natural human growth hormone enhancer” that would reverse the aging process, the U.S. Federal Trade Commission said.

The Federal Trade Commission, in a complaint filed in U.S. District Court for the Northern District of Illinois, Eastern Division, called the claims false or unsubstantiated and charged the defendants with violations of the FTC Act and the CAN-SPAM Act. For the first time, the FTC also used powers granted under the U.S. Safe Web Act, a law passed by Congress in 2006 that enhances the agency’s ability to exchange information with foreign counterparts and helps protect consumers from cross-border spam and other Internet fraud.

The FTC’s complaint, filed in October 2007, charged eight defendants — Spear Systems, three other corporate defendants, and four individuals.

The commission settled with three defendants in the case — Spear Systems and two individuals, one in the U.S. and one in Australia — in May 2008.

The FTC was unable to reach settlements with the remaining five defendants, and they are subject to the order announced Thursday. Those defendants are Xavier Ratelle and Abaragidan Gnanendran, both of Quebec, Canada; and corporate defendants 9151-1154 Quebec, 9064-9252 Quebec and HBE.

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