Affiliate company ordered to pay for affiliates’ “spamming” of MySpace network.
If you’ve ever been to a TRAFFIC domain name conference, you’ve probably run into Scott Richter, who heads Media Breakaway. He’s one of the guys bidding lots of money on domain names during the auction.
His company just got hit with a $6 million dollar judgment by MySpace, which charged his company with spamming its members. Media Breakaway claims that its affiliates were the guilty party.
Popular blogger and internet entrepreneur Shoemoney had this to say:
I will add my own 2 cents and say that I honestly do not feel that Richter knowingly participated in a phishing scam and if there was evidence to say he had knowledge the judgment would have been for a ton more. When I highlighted fraud that was occurring in the past on CPA Empires network they have been very quick to fix it.
When this story first broke in January of 2007 a lot of people were talking about how this could be the end of CPA Empire much like how Richter’s other company that had to closed its doors and filed bankruptcy after being nailed with a 7 million dollar judgment against Microsoft.
Richter and company have come a long way since then and this 6 million dollar judgment is probably in line with what Myspace figures CPA Empire profited. Course that is just my guess. I think if true revenue numbers were revealed CPA Empire is probably doing the largest revenues of all the privately held affiliate companies and they eat this 6 million for breakfast.
But Shoemoney also embedded one of his favorite videos of Richter when he appeared on The Daily Show. I have to admit, it’s really funny.