CPA Empires Loses SIX Million Dollar Judgement To Myspace

I always try to come up with a reason to show the Daily Show video with Scott Richter. Its pretty frickin hilarious.

A good reason came up today. Just so happens CPA Empire Scott Richter got drilled with a 6 million dollar fastball right in the nuts. To quote the story:

MySpace can collect $6 million from a notorious Internet marketer accused by the popular online hangout of spamming its users.

An arbitrator has ruled that Scott Richter and his Web marketing company, Media Breakaway LLC of Westminster, Colo., must pay MySpace $4.8 million in damages and $1.2 million in attorney’s fees for barraging MySpace members with unsolicited advertisements. Media Breakaway and its employees were also banned from the site.

MySpace, a unit of News Corp. (NWS), had alleged that some of the messages were sent from accounts whose sign-on information had been hijacked by “phishing.” Media Breakaway countered that rogue business affiliates – independent contractors who sent messages for Media Breakaway – were to blame for phishing and other improper behavior.

Shawn Collins, Close personal friend of Richter, and owner of the Affiliate Summit linked us up with CPA Empires press release which is a interesting spin on the situation mostly talking about how CPA Empire got away with paying 95% less then what was originally demanded.

Shawn’s comments –

“Big headache as a result of rogue affiliates. Any affiliate programs still automatically approving affiliates should take heed.”

I agree with Shawn on this one. There are a lot of companies that embrace any and all comers. HUGE MISTAKE. Fraudsters love to jump from company to company.

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.

58 Comments