U.S. authorities said on Thursday they had arrested two men and were searching for two more, in the first cases brought under a new law designed to stop spam e-mail.

The four Detroit-area men are accused of disguising their identities in sending out millions of e-mail advertisements for a fraudulent weight loss product selling at $59.95 US.

The product was sold under a range of corporate names that include AIT Herbal, Avatar Nutrition, Phoenix Avatar.

To disguise the origin of the emails they reportedly relayed their messages through others' computers, including at the U.S. Army Information Centre and the Ford Motor Company, according to the E-Commerce Times, an industry publication.




They could face up to five years in jail under the U.S.'s "can spam" law, passed in January, and up to another 20 years for mail fraud.

A court seized the assets of the spam operation, which made estimated profits of about $100,000 per month, the FTC said.

U.S. attorney in Detroit Jeffrey G. Collins warned, "cyber scam artists who exploit the internet for commercial gain should take notice".

"Federal law makes it a felony to use falsehood and deception to hide the origin of the spam messages hawking your fraudulent wares," Collins said, according to The Associated Press.

The four defendants were identified as Daniel J. Lin, James J. Lin, Mark M. Sadek and Christopher Chung of West Bloomfield, Mich., near Detroit.

The Lins have not yet been arrested, while Chung and Sadek were released on bail by a court.

Sadek's lawyer, James L. Feinberg, said his client would plead innocent.

The investigation, led by officials from the Federal Trade Commission, reportedly involved the help of AOL, where the four had e-mail accounts, and Hotmail, whose subscribers were bombarded with the e-mails.

The FTC also announced legal action against Global Web Promotions Pty Ltd., an Australian company investigators said pitched fraudulent weight-loss and growth-hormone products.