U.S. Files Criminal Charges Over Spam

DETROIT – The Federal Trade Commission plans to announce Thursday the first criminal prosecutions under the government's new "can spam" legislation.

The U.S. Attorney’s Office told XBiz Wednesday that four Internet entrepreneurs – Daniel J. Lin, James J. Lin, Mark M. Sadek and Christopher Chung – have been accused of disguising their identities in millions of email sales pitches for weight-loss products and delivering emails by bouncing messages through unprotected relay computers on the web.

The four, all from the Detroit area, have been charged with federal crimes after U.S. Postal Service investigators received more than 10,000 complaints about unwanted solicitations sent by the company.

Chung and Sadiek appeared in U.S. District Court in Detroit on Wednesday and were released on unsecured bonds, the U.S. Attorney’s Office said. The Lins have not been arrested.

Federal investigators said the company sold a weight-loss patch under the corporate names Phoenix Avatar, AIT Herbal, Avatar Nutrition and others.

The "can spam" legislation requires unsolicited emails to include a device so recipients can indicate they do not want future mass mailings. The federal law went into effect Jan. 1.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Playboy Partners With Creator Platform Tango

Playboy has partnered with creator platform Tango, introducing Playmates to the livestreaming service.

Anti-Porn Senator Introduces Federal Age Verification Bill

U.S. Senator Jim Banks of Indiana, who last month urged the Department of Justice to ramp up obscenity prosecutions, on Wednesday introduced a bill that would make age verification by adult websites federal law.

AEBN Publishes Popular Searches by Country for April, May

AEBN has released the list of popular searches from its straight and gay theaters, by country, for April and May.

Ondato Joins Pineapple Support as Sponsor

Age and identity verification company Ondato has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

2026 XBIZ Amsterdam Website Now Live, Registration Opens

XBIZ is pleased to announce that the website for its annual European conference, XBIZ Amsterdam, is now live.

MyMember.site Integrates FSC's 'PrivateAV' Age Verification Solution

MyMember.site has integrated Free Speech Coalition's PrivateAV age verification tool into its website-building platform.

Pearl Industry Network Opens Beta for Creator Networking App

Industry trade group Pearl Industry Network (PiN) has launched beta testing for the PiN Member App, a networking and collaboration tool for content creators.

FSC: W.V. Age Verification Law Takes Effect June 12

The Free Speech Coalition has issued a reminder notice that West Virginia's age verification law takes effect on June 12, 2026.

Pineapple Support Taps Brad Mitchell, Jean-Micheal Veen for Senior Leadership Positions

Pineapple Support has named Brad Mitchell as its new board president and Jean-Micheal Veen as technology and development chair.

WOW Tech, XR Brands Reach Settlement in Patent Infringement Dispute

XR Brands and Lovehoney Group subsidiary WOW Tech Group have settled a patent dispute over WOW's Pleasure Air Technology.

Show More