I would issue a Cease and Desist letter to Jason, and then contact the ISP hosting their site(s), forwarding a copy of that letter and requesting that the sites be taken down for copyright infringement. This is one case where the DMCA could actually be used for good.
That two-pronged approach should bag this kitty up fairly quickly, especially since they emailed letters with that "opt-out" line in it, which is illegal, and hosting companies are required by federal law to keep copies of all emails sent for a specific period of time.
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