California man charged with extorting NY insurer

* Man was angry about a denied insurance claim-prosecutor

* Man threatened to send spam, damage insurer-prosecutor

NEW YORK, March 8 (Reuters) - A California man angry about a denied insurance claim was arrested and charged with extortion after he sent an email to a New York-based life insurer threatening to damage its business, federal prosecutors in New York said on Monday.

Anthony Digati, 52, of Chino, California, also threatened to send computer spam to the insurer in his attempt to extort about $200,000, according to Preet Bharara, U.S. attorney for the Southern District of New York.

"I have 6 MILLION emails going out to couples with children age 25-40, this e-mail campaign is ordered and paid for," the criminal complaint quoted a Feb. 22 email as saying.

"2 million go out on the 8th and every two days 2 million more for three weeks rotating the list," it went on. "Of course it is spam, I hired a spam service, I could care less, The damge [sic] will be done."

Digati could not immediately be reached at his home telephone number.

The government alleged that Digati bought variable universal life insurance from the insurer, which was not identified. It said the defendant sent the email to more than a dozen employees, executives and one board member at the insurer.

"As you have denied my claim I can only respond in this way," Digati allegedly wrote. "You no longer have a choice in the matter, unless of course you want me to continue with this outlined plan. I have nothing to lose, you have everything to lose."

Digati is expected to appear later Monday before a federal magistrate judge in Riverside, California. He faces up to two years in prison and a possible $250,000 fine if convicted.

The case is U.S. v. Digati, U.S. District Court, Southern District of New York, No. 10-mag-00451. (Reporting by Grant McCool; editing by John Wallace)