NEW YORK (Dow Jones)--A California man has been charged with trying to extort nearly $200,000 from New York Life Insurance Co. by threatening to send six million disparaging spam email messages about the company.
Anthony Digati, 52 years old, of Chino, Calif., has been charged with one count of extortion through interstate communications. He faces up to two years in prison on the charge.
It was revealed in a court appearance in California on Monday that his alleged target was New York Life. The company's name wasn't initially disclosed when the case was unsealed on Monday.
Digati was arrested in California on Saturday. Bail was set at $50,000 at a hearing in federal court in California on Monday. As a condition of his bail, Digati is prohibited from engaging in Internet use regarding New York Life.
Calls to Digati and his lawyer weren't immediately returned Monday.
"After Mr. Digati contacted the company with his threats, we conducted a thorough investigation and determined the best course of action was to turn this over to the FBI for their assessment," a New York Life spokesman said. The company has no further comment, he said.
Prosecutors from the U.S. Attorney's office in Manhattan alleged that Digati, on Feb. 22, contacted more than a dozen employees and executives of the insurer and one director by email, telling them to visit a Web site he had created.
"I'm sorry it had to come to this, but I guess you won't listen to what customers' concerns are," Digati allegedly said in the email, according to prosecutors. "You enjoy ripping policyholders off with obscure products bought because of the trust you have established over 160+ years. You enjoy misleading the public and I will make it my purpose in life to educate them."
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