Oregon man to pay $84,000 in spyware case

An Oregon man will pay nearly $84,000 in fines and consumer restitution for using e-mail to market bogus anti-spyware software called Spyware Cleaner, Washington state officials said in announcing a settlement.

State Attorney General Rob McKenna said the penalties are the first under an anti-spyware law the Legislature passed last year.

"We will not tolerate those who try to profit by preying on consumers' fears of spyware and other malware," McKenna said Tuesday in a statement.

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The settlement with Zhijian Chen of Portland, Ore., follows a five-month investigation by the attorney general's consumer protection high-tech unit.

Officials say Chen made thousands of dollars in commissions by sending e-mail meant to mislead people into believing their computers were infected by a virus and that Spyware Cleaner sold by Secure Computer was the fix.

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The lawsuit filed in January in U.S. District Court names Secure Computer LLC of White Plains, N.Y., along with company executives and other associates.

Chen will pay $16,000 in restitution to consumers who bought Spyware Cleaner as a result of receiving his message, the attorney general's office said. He will also pay $24,000 in civil penalties and nearly $44,000 in attorneys' fees and costs.