GreenZap Successful in Bringing Down Scam Website

April 20, 2007; 06:04 AM
GreenZap®, Inc., (Pink Sheets: GZPN) an online payment provider, announced that it has identified the owner and developer of greenzapscam.com and in doing so, forced the termination of the scam website and subsequently acquired the domain.

According to GreenZap, a graduate student of computer sciences living in Singapore is responsible for the libelous website. The student is also partial owner and operator of Vodien Internet Solutions; the same company that GreenZap filed a lawsuit against in February, along with Vodien website-hosting-company, Liquid Web, Inc. for a total of $57.5 million. It was shortly after filing that suit that GreenZap uncovered the scam-site-owner’s identity. GreenZap believes that the graduate student’s sole purpose for creating the harmful site existed for his own financial gain.

“Riding on the coattails of a popular site that generates a lot of web-traffic like GreenZap enabled the young man to collect monies from advertisements. He was able to generate revenue by allowing GreenZap competitors to post ads. Greenzapscam’s presence significantly increased on Google and Yahoo search engines, making it impossible for one to search GreenZap (the company), and not be exposed to the libelous scam website,” said GreenZap CEO Damon Westmoreland.

Once his identity was established, GreenZap’s attorneys contacted the young student and demanded that the site be taken down and that the domain be transferred to GreenZap, Inc. effective immediately. Within a day of receiving these demands, the student promised to comply noting in an email that GreenZap’s claims were “substantiated.” Yet, according to GreenZap, it took the student several weeks to officially transfer the domain to the company.

“The site itself has been a distraction for our company, especially due to the fact that the owners and posters operated anonymously. They were posting false claims about GreenZap, its employees, and its business dealings, and then hiding behind their anonymity,” said Mr. Westmoreland.

GreenZap maintains that greenzapscam.com caused a strain in the company’s relations with clients and strategic partners who were disturbed by the content being posted. Moreover, GreenZap believes that the fabricated claims made on greenzapscam.com had a major impact on its market value and as such, reflected in the company’s share price.

GreenZap says it is continuing to aggressively pursue any other sites and individuals that are purporting false and malicious information about the company, or its officers and employees.

About GreenZap, Inc.

GreenZap, Inc., a San Diego, California-based company, enables any business or individual with an email address to send and receive money securely and cost-effectively online. GreenZap’s system resembles PayPal® (eBay’s payment processor), which reports over 100 million users and a 2005 total dollar volume of payments of $27.5 billion. GreenZap differentiates itself by charging flat-rate fees versus a percentage of each transaction, and rewards its customers for using GreenZap’s services. Since opening June 1, 2005, GreenZap has grown to over 760,000 users. In October 2006, the company expanded its services to include a classifieds section called ZapExchange.