Competition Bureau Investigation Leads to Guilty Pleas by Deceptive Telemarketers

OTTAWA, January 21, 2003 — A Competition Bureau investigation into the deceptive telemarketing activities of two Montreal-based companies has resulted in guilty pleas from five people who were involved in a prize-pitch scam targeting consumers in Australia and New Zealand.

The pleas, which fall under the misleading advertising and deceptive telemarketing provisions of the Competition Act, follow a criminal investigation by the Bureau that primarily used wiretaps to gather information about the operation of 3636135 Canada Inc., which conducted business in Montreal as Alexis Corporation (Alexis), and 3587932 Canada Inc., its administrative affiliate.

Following the guilty pleas, the Court of Quebec (Judicial District of Montreal) imposed the following sentences: Jerry Browman: 15-month conditional sentence and 150 hours of community service; Marcus Miller: eight-month conditional sentence, 12 months probation and 100 hours of community service; Michel Rosenberg: six-month conditional sentence, six months probation and 100 hours of community service; Lawrence Walsh: 12 months probation, 100 hours of community service and a $1,000 fine. Doron Kunin agreed to a 16-month conditional sentence in the Court of Quebec (Judicial District of Montreal) on October 21, 2002.

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

All of the parties received a 10-year prohibition order banning them from working in telemarketing operations, and an order prohibiting them from communicating with any of the co-accused. The remaining co-accused, Sheldon Cutler, Scarlet Jove, Gerald Goldstein, Constantina Athanasopoulos, Armenia Linhares and William Kenwood, will appear in a Montreal court for a preliminary hearing in September 2003.

Between May 2000 and June 2001, the Competition Bureau and Phonebusters received numerous complaints alleging that Alexis 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. These practices are illegal under the Competition Act.

The Competition Bureau is an independent law enforcement agency that ensures all Canadians enjoy the benefits of a competitive economy. The Bureau oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For media enquiries, please contact:
Maureen McGrath
Senior Communications Advisor
Communications Branch
819-953-8982, or 613-296-2187 (cell)

For general enquiries, please contact:
Information Centre
Competition Bureau
1-800-348-5358