A California man has been indicted for cyber extortion after demanding New York Life Insurance pay him $200,000 if they didn't refund his insurance premiums.
According to the Department of Justice, Anthony Digati, 52, allegedly threatened in emails and on a website he created to make false public statements and send millions of spam emails in an effort to damage the reputation of New York Life and cost the company millions of dollars.
In January, Digati sought the return of his Life Insurance premiums from New York Life after he purchased variable life insurance and became dissatisfied with the performance of the insurance. New York Life told Digati that those premiums would not be returned.
In response, Digati sent an email to more than a dozen employees, executives, and one board member of New York Life directing them to visit the website he created. On the website Digati wrote," My demand is now for $198,303.88. This amount is NOT negotiable."
"I am going to drag your company name and reputation, through the muddiest waters imaginable. This will cost you millions in lost revenues, trust and credibility. The process is in motion and will be released on March 8th, 2010. If you delay and the site goes live, The price will then be $3,000,000.00."
He added, "By the way: Yes, I am crazy. Yes, I am vindictive. Yes, I am extremely upset. Yes, I will do everything that I said. I have absolutely nothing to lose or any fear of retaliation, no judge in the world is going to rule for a 200 billion dollar company when there is a lonely customer that you stole from!"
Digati is charged with one count of extortion through interstate communications. If convicted he faces a maximum sentence of two years in prison and maximum fine of $250,000.