The government's case against Wallace is that he used spyware to infiltrate computers, overwhelming them with ads and other programs. Then, he tried to sell programs he claimed would fix the problems that did not work.
No trial date has been set. US District Judge Joseph DiClerico issued a temporary restraining order against Wallace in October to prevent him from sending ads. Hearings on that order planned for this week were canned because the out-of-court agreement made them unnecessary.
Wallace claims he is being persecuted by the government because of his past involvement in junk Internet mailings.
His previous form included running an outfit called Cyber Promotions in the 1990s that sent as many as 30 million junk e-mails daily to consumers. He left the company after lawsuits from America Online and CompuServe.
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