The creator of software designed to surreptitiously observe individuals' online activities has been indicted for allegedly violating U.S. federal computer privacy laws, local and federal authorities said Friday. If convicted, Carlos Enrique Perez-Melara could face a maximum sentence of 175 years in prison and fines of up to $8.75 million. His current whereabouts are unknown. Four individuals who purchased the Loverspy software to illegally spy on others were also indicted. His indictment was returned on July 21 by a federal grand jury sitting in the U.S. District Court for the Southern District of California in San Diego but wasn't unsealed until last week.

"This federal indictment -- one of the first in the country to target a manufacturer of 'spyware' computer software -- is particularly important because of the damage done to people's privacy by these insidious programs," John Richter, acting assistant attorney general of the U.S. Department of Justice's Criminal Division, said in a statement. "Law enforcement must continue to take action against the manufacturers of these programs to protect unsuspecting victims and seek punishment for those responsible for wreaking havoc online."

Perez-Melara, 25, was indicted on 35 counts of manufacturing, sending and advertising a surreptitious interception device (the Loverspy program), unlawfully intercepting electronic communications, disclosing unlawfully intercepted electronic communications and obtaining unauthorized access to protected computers for financial gain. Each count carries a maximum penalty of five years in prison and a maximum fine of $250,000.

Perez-Melara advertised and sold Loverspy and EmailPI software over the Internet for $89 a copy to people looking to secretly monitor another computer user's e-mail, passwords, chat sessions, instant messages and the Web sites they visited. Purchasers of the program could log into a Loverspy Members Area on the Loverspy or EmailPI Web sites and choose an e-card and greeting that would be sent to the victim.