Competition Bureau investigation leads to additional guilty pleas in deceptive telemarketing operation

OTTAWA, March 15, 2005 — Following a Competition Bureau investigation into the deceptive telemarketing activities of Alexis Corporation (3636135 Canada Inc.) and 3587932 Canada Inc., five participants pleaded guilty in the Court of Quebec (Judicial District of Montreal) for their role in a prize-pitch scam over a five-week period targeting consumers in Australia.

The sentences were as follows:

• Sheldon Cutler received a 20-month conditional sentence, two years probation and a $20,000 fine;
• William Kenwood received a 6-month conditional sentence, two years probation and 100 hours of community service;
• Scarlet Jove will be sentenced on March 30, 2005;
• Armenia Linhares will be sentenced on March 30, 2005; and
• Gerald Goldstein will be sentenced on June 20, 2005.

The guilty pleas, which fall under the deceptive telemarketing provisions of the Competition Act, follow a criminal investigation into the Montreal-based companies by the Bureau that used wiretaps to gather evidence.

In January 2005, Constantina Athanasopoulos was sentenced to a 15-month conditional sentence and two years probation.

In January 2003, sentences were also imposed on four co-accused following guilty pleas:

• Jerry Browman: 15-month conditional sentence and 150 hours of community service;
• Marcus Miller: 8-month conditional sentence, 12 months probation and 100 hours of community service;
• Michel Rosenberg: 6-month conditional sentence, 6 months probation and 100 hours of community service; and
• Lawrence Walsh: 12 months probation, 100 hours of community service and a $1,000 fine.

In October 2002, Doron Kunin agreed to a 16-month conditional sentence in the Court of Quebec (Judicial District of Montreal).

"Deceptive telemarketing is a serious crime that preys upon the most vulnerable in society," said Raymond Pierce, Deputy Commissioner. "The Bureau will continue to vigorously pursue enforcement action against illegal telemarketers, regardless of where their victims may reside."

Between May 2000 and June 2001, the Competition Bureau and PhoneBusters received numerous complaints alleging that telemarketers were explicitly telling consumers they had won valuable prizes such as a Toyota Corolla or up to $20,000 (U.S.), his and her diamond watches, a washer and dryer set or up to $2,500 (U.S.), a tri-coloured gold genuine sapphire bracelet or a video camera or up to $2,000 (U.S.). However, customers were required to make a purchase of a promotional item, such as a Columbus map, Sirius Flagship, or Napoleon Collectible, in order to receive these prizes.

The Bureau investigation resulted from allegations that the telemarketers greatly deceived and misled consumers about the quantity and value of these prizes.

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

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