I hadn't heard anything about this - quite interesting in context of the discussion, and also in that it only has a grain of truth.

His company was sued for violations of the Consumer Protection Act (for making shitty misleading 'you may have a virus! Click here for free scan' popups and shady apps like 'RegistryCleaner', as you allude), which they settled for $150k plus $40k in court fees.

He was never charged with fraud nor convicted - that is something much more serious.