The Competition Bureau announced today that criminal charges have been laid following the largest criminal deceptive telemarketing operation investigated by the Competition Bureau and the Toronto Strategic Partnership.

The Toronto Strategic Partnership was formed in May 2001 as part of a broad initiative by the Canadian and American governments to improve the enforcement of deceptive marketing practices laws to protect business and consumers from this criminal activity.

Operating in boiler-rooms in the Toronto area over the past several months, First Capital Consumers Group allegedly defrauded close to 100,000 American consumers with poor credit history, claiming they had been approved for a MasterCard or Visa credit card.

Receipt of one or both cards was conditional on a prior payment for a one-time processing fee. The victims never received a valid credit card. It is estimated that this deceptive telemarketing operation grossed approximately US$20 million in the last year.

The charges stem from a Bureau investigation into cross-border deceptive telemarketing practices carried out by 1492828 Ontario Inc., operating as First Capital Consumers Group, U.S. Guardian United Consumers and Trans America United Benefits Group.

Between October 2001 and July 2002, the Competition Bureau received approximately 1,200 complaints from various sources, including the Phonebusters National Call Centre and Consumer Sentinel, a call centre maintained by the U.S. Federal Trade Commission.

“The Bureau is very proud of the work of the Toronto Strategic Partnership,” said Raymond Pierce, Deputy Commissioner, Competition Bureau, in a news release. “The Partnership has demonstrated that by working together, great success can be realized.”

Charges have been laid under the Competition Act and the Criminal Code by the Toronto Police Service against four directors of the Toronto-based telemarketing operation: David Dalglish; Leslie Anderson; Mark Lennox; Lloyd Prudenza. The charges include: False or misleading representations made in a material respect; Conspiracy to commit an indictable offence; Fraud; Possession of property obtained by crime. Additional charges are expected as the investigation continues.

The Competition Bureau is one of the founding members of the Toronto Strategic Partnership, which also includes the Ontario Ministry of Consumer and Business Services, the Ontario Provincial Police, PhoneBusters National Call Centre, the Toronto Police Service, the U.S. Federal Trade Commission’s Bureau of Consumer Protection and the United States Postal Inspection Service.