Affiliate Cookie Stuffers Face 20 Years in Jail and Millions in Fines if Found Guilty

[Linda Buquet]

I've said it before and I'll say it again! Cookie stuffing doesn't pay and here's the proof!

Way back in August 08 I reported that <strong><a href="http://affiliate-blogs.5staraffiliateprograms.com/1640/ebay-sues-high-profile-affiliate-for-cookie-stuffing-and-fraud.html">eBay Sued a High Profile Affiliate for Cookie Stuffing and Fraud</a></strong>. That civil case is still ongoing.

In that post I said: <strong>"For the blackhatters out there that say “cookie stuffing isn’t illegal and all is fair in love and affiliate marketing” – I say you better take a very close look at this case!</strong>

<strong>Well, I just found out <a href="http://www.revenews.com/kelliestevens/affiliates-indicted-for-cookie-stuffing/"><strong>CRIMINAL CHARGES</strong> were filed</a></strong> on June 24, 2010 and 2 indictments were handed down by the grand jury against the same people - Shawn Hogan, whom many in the industry know as the owner of the popular Digital Point forums and his associate Brian Dunning. The indictments charge Hogan and Dunning with 15 counts of wire fraud and criminal forfeiture, following an FBI investigation by the Cyber Crimes Department.

The two reportedly made millions from the alleged eBay cookie stuffing.<strong> However the maximum penalty they are facing, if found guilty, is imprisonment for 20 years and a Maximum fine of $250,000 or twice the gross gain/loss (whichever is greater). That could amount to MILLIONS in fines. </strong>So think about it - was it worth it? To say nothing of the money and jail time - think of all the stress, legal costs and TIME spent over the last 2 years due to all these civil and criminal charges.

Kellie Stevens broke the story over at Revenews and added great insights and lots of additional details. Head over there to read the full story. <strong><a href="http://www.revenews.com/kelliestevens/affiliates-indicted-for-cookie-stuffing/">Affiliates Indicted For Cookie Stuffing</a></strong>

Here's the previous discussion about the original civil suit for cookie stuffing here at the 5 Star forum.
http://affiliate-marketing-forums.5.../12823-dp-owner-cookie-stuffer.html#post38634

What do you think???

 

[djbaxter]

Just wow.... will they look back and say it was worth it?

 

[MostHeather]

Re: Affiliate Cookie Stuffers Face 20 Years in Jail and Millions in Fines if Found Gu

A bit of followup on this story.

Some other guy from Nevada was recently sentenced to six months in prison for his cookie stuffing scheme and ordered to pay about $500,000 in restitution..

 

[Linda Buquet]

Re: Affiliate Cookie Stuffers Face 20 Years in Jail and Millions in Fines if Found Gu

Wow Heather, thanks for that link!

I found the story fascinating when I 1st reported on in and followed it for a long time, then forgot about it. So interesting to read the whole thing.

And they quoted me via Kellie Stevens. I said "For the blackhatters out there that say, "cookie stuffing isn't illegal and all is fair in love and affiliate marketing" I say you better take a very close look at this case!?"

 

[MostHeather]

Re: Affiliate Cookie Stuffers Face 20 Years in Jail and Millions in Fines if Found Gu

You're welcome! I happened to catch it while I was checking out the news..

Cookie stuffing can lead to very severe consequences .. Definitely not recommended..

 

[djbaxter]

Re: Affiliate Cookie Stuffers Face 20 Years in Jail and Millions in Fines if Found Gu

No. But the part of the story that interests me is Shawn Hogan's claim that eBay unofficially encouraged him in the practice because of all the sales he was bringing in. In fact, he states that at one point he discontinued the scheme and was asked by eBay to reinstall it. Given the testimony about eBay regaling him with dinners and their jet, I wonder if there might not be some truth to that.

Not an easy thing for him to prove, of course, given that everything was entirely off the record - even if true, eBay isn't likely to admit that now.

 

[Linda Buquet]

Re: Affiliate Cookie Stuffers Face 20 Years in Jail and Millions in Fines if Found Gu

A little follow up on the article from Matt at MarketingLand:
Cookie-Stuffing Could Land eBay's Top Two Affiliates In Jail

 

[MostHeather]

Re: Affiliate Cookie Stuffers Face 20 Years in Jail and Millions in Fines if Found Gu

I hear you, Minstrel but without evidence or proof (legal hold compliant Email) he's going to have a hard time proving his innocence.

He's still bound by the TOS which says no cookie stuffing, regardless of what an employee may have told him. If they did encourage him to do more of it, it was probably to help them build an air tight defense against him.

At least he's been 'too busy' to think much about it. I would be a nervous wreck.. 20 years is a LONG time!

 

[operationoffers]

Re: Affiliate Cookie Stuffers Face 20 Years in Jail and Millions in Fines if Found Gu

Here is what irritates me at times about this industry. Some people use black hat methods to take short cuts and make quick money while never thinking of the advertiser or anyone else they are hurting in the process not to mention the overall view of this industry. It will take some time but these people who insist on taking short cuts and manipulating the system will eventually be evacuated onto the sidewalk.

Excuse the imagery but it was for a purpose