According to a Monday announcement by the US Department of Justice, the spam linchpin Alan Ralsky has pleaded guilty to federal fraud and money laundering charges. The recent development implies that the 64-year-old Ralsky, of Bloomfield Hills, Michigan, might face more than seven years in prison.

Along with Ralsky, four other persons pleaded guilty in the stock fraud case, thereby joining the three others who had pleaded guilty earlier. The defendants were charged in 2007, in the Eastern District of Michigan.

Elaborating on the activities of the group, the Department of Justice said that in 2004 and 2005, they were involved in a series of related conspiracies, using false and misleading spam messages to manipulate stocks, especially pumping up Chinese "penny" stocks.

The connivers gained by trading in the shares following the post-spam boost in the trading volume and prices of the sparsely-traded stocks - with many of the shares being low-priced "pink sheet" stocks for US companies owned by individuals in China and Hong Kong.

Noting that Ralsky was the world's "most notorious illegal spammer," US Attorney Terrence Berg, said: "Using the Internet to manipulate the stock market through spam e-mail campaigns is a serious crime, and this case serves notice that federal law enforcement has the both the capability and the will to successfully investigate, prosecute and punish such cybercrimes."