Daniel Sundin and Sam Jain

Mar. 28, 2010 - A federal grand jury in Chicago indicted three men on charges that accused them of ?conning people in more than 60 countries into buying $100 million in bogus software by convincing them their computers were infected by malicious programs,? according to a May 27 Associated Press story.

The Federal Trade Commission first filed a complaint against these scam artists on Dec. 2, 2008. A Dec. 10, 2008 FTC press release explained that in response to the complaint, ?a U.S. district court has issued a temporary halt to a massive ?scareware? scheme, which falsely claimed that scans had detected viruses, spyware, and illegal pornography on consumers? computers. According to the FTC, the scheme has tricked more than one million consumers into buying computer security products such as WinFixer, WinAntivirus, DriveCleaner, ErrorSafe, and XP Antivirus.?

The three men indicted on Wednesday were 26-year-old James Reno of Amelia, Ohio; Bjorn Daniel Sundin, a 31-year-old Swedish citizen who is believed to be living in Sweden; and Shaileshkumar Jain, a 40-year-old American who is believed to be living in the Ukraine. None of the men are in custody.

?The indictment says Jain and Sundin sold a pieces of bogus software through their company, Innovative Marketing Inc,? the AP story said. ?Reno is accused of running call centers for Innovative Marketing.?

AP:

?These defendants allegedly preyed on innocent computer users, exploiting their fraudulently induced fears for personal gain,? Robert D. Grant, the special agent in charge of the FBI?s Chicago office, said in a news release.

While authorities say they expect Reno to turn himself in at some point, none of the three are in custody. U.S. Department of Justice spokesman Randall Samborn declined to discuss when Reno will turn himself in or how authorities plan to pursue Sundin and Jain. There was no immediate response to messages left by The Associated Press on Thursday at a telephone number listed for James Reno in Amelia, Ohio.

Jain, Sundin and others used a company they incorporated in Belize called Innovative Marketing Inc. and a series of fictitious advertising agencies to place fake ads on legitimate Web sites from December 2006 through October 2008, the indictment says.

The ads contained hidden computer codes that redirected browsers on any computer used to view the ads to Web sites that would display error messages ? known as scareware ? telling users their computers were infected with malicious software. Computer users were prompted to use their credit cards to buy Innovative Marketing software with names such as ?DriveCleaner? and ?ErrorSafe? for anywher from $30 to $70, authorities said.

The money, according to the indictment, was deposited in bank accounts around the world. The indictment charges Sundin and Jain each with 24 counts of wire fraud, and Reno with 12 counts of wire fraud. Each also was charged with one count of conspiracy to commit computer fraud and computer fraud.

Each wire fraud count carries a maximum sentence of 20 years in prison and a $250,000 fine, plus restitution and further potential fines based on the money lost by victims. The indictment also seeks the forfeiture of about $100 million and all money held in an account at Swedbank located in Kiev, Ukraine.