Court sentences Demon Internet founder for intercepting emails

The founder of Demon Internet, Cliff Stanford, was fined and given a six month prison sentence after being found guilty of unlawfully intercepting emails.

Mr Stanford resigned as a director of Redbus Interhouse plc after a dispute with the Chairman of the company. Both he and the Chairman had a significant shareholding in the company and Mr Stanford retained his shareholding after he resigned. The prosecution alleged that Mr Stanford wanted to win control of the company and that he required the Chairman to resign.

It was further alleged that Mr Stanford hired a private detective to attempt to gather information which might discredit the Chairman. The prosecution had evidence that a “mirror wall” was set up on Redbus’ email server such that all of the Chairman’s emails were sent to a hotmail account set up by the private detective. The intercepted emails contained numerous personal details, including bank details, privileged legal documents and business memos.

The Regulation of Investigatory Powers Act 2000 makes it a criminal offence to intentionally intercept any communication in the course of its transmission by means of a public or private telecommunication system. The Judge found Mr Stanford guilty of this offence. Mr Stanford was sentenced to six months in prison and was fined £20,000.

This article first appeared in our Technology Annual Review, March 2006. To view this publication, please click here to open in a new window.