ARAPAHOE COUNTY, Colo. -- Escaped "Spam King" Edward 'Eddie' Davidson, his wife and 3-year-old daughter were found slain outside a farm house Thursday east of Denver in an apparent murder-suicide.

U.S. Attorney Troy Eid confirmed the identity of the three bodies found in a rural part of Bennett, about 25 miles east of Denver.

Authorities had been searching for Davidson, 35, since Sunday when he and his wife drove away from a minimum-security federal prison in Florence.

"What a nightmare, and such a coward," Eid said. "Davidson imposed the 'death penalty' on family members for his own crime."

Arapahoe County undersheriff Mark Campbell said deputies rushed to a home in a subdivision in Bennett after receiving reports of shots fired.

Deputies found Davidson, who appeared to be the gunman on the driver's side of the SUV in a driveway, and a woman dead on the passenger side. A girl was also found dead in the back of the car.

An 7- or 8-month-old baby boy was found in a car seat uninjured.

Campbell said a teenage girl was shot in the neck and ran to a neighbor's house for help.

"She was coherent and was talking to the deputies and rescue workers when they arrived on the scene," said Undersheriff Mark Campbell.

The infant was also transported to a hospital with "dehydration issues," Campbell said.

The shooting scene was on an extended driveway leading to a home on East Arkansas Place, near County Road 129.

"It's just tragic," said Rick Kagen, who lives near Davidson's former home.

Kagen said he had no knowledge Davidson's federal prison sentence.

"He talked about doing internet programs overseas," Kagen said.

Davidson had told Kagen the reason for moving in October was to be closer to his wife's family.

"He obviously snapped, to see somebody that nice then do what he did, it's just tragic," Kagen told 7NEWS Thursday.

Davidson, 35, was serving 21 months after pleading guilty to tax evasion and falsifying e-mail headers as part of a massive spam operation, according to federal officials. He was referred to by the U.S. Attorney's Office as a "spam king."

Davidson apparently escaped when his wife came to visit him Sunday. He was last seen leaving with her in her silver Toyota Sequoia.

As part of his sentence, Davidson had to pay $714,139 in restitution to the IRS and to forfeit property he bought with the money he earned by sending spam.

After he escaped, he was last seen in Lakewood on Sunday. His whereabouts after that were not known until authorities were called to the home near Bennett on Thursday.

7NEWS Reporter Lane Lyon contributed to this report.