Competition Bureau Investigation Leads to Criminal Charges Against Telemarketers of Toner Supplies

OTTAWA, September 23, 2003 — The Competition Bureau announced today that criminal charges have been laid against two Toronto-based companies engaged in telemarketing office toner products. This telemarketing operation is alleged to have targeted businesses, not-for-profit organizations and government agencies in Canada and the United States, invoicing them for toner products they did not order and did not want.

The charges stem from a Bureau investigation of the telemarketing activities of Lexcan International Corp. and H&P Communications, which also operated as the Calcom Business Centre, Lexam International Corp. and MPL. In addition to the corporate charges, the owner, Edward Harry Leefe, and the office manager, Shirley Herrell, were arrested and charged with offences under the Competition Act and the Criminal Code.

"Deceptive telemarketing operations prey on all facets of the business community bilking unsuspecting companies of millions of dollars," said Raymond Pierce, Deputy Commissioner, Competition Bureau. "Individuals engaged in deceptive telemarketing are warned that the Bureau will continue to combat this criminal activity through rigorous investigation and prosecution of those involved."

The Toronto Strategic Partnership, a law enforcement partnership established to combat deceptive marketing practices across North America, assisted in this investigation. Members of the partnership include the Competition Bureau, Toronto Police Service - Fraud Squad, Project Phonebusters, the Ontario Ministry of Consumer and Business Services, the Ontario Provincial Police, the U.S. Federal Trade Commission, the U.S. Postal Inspection Service and the Ohio Attorney General's Office.

Consumers who suspect they have been the victim of deceptive telemarketing practices or who want information on the application of the Competition Act should contact the Bureau's Information Centre at 1-800-348-5358, or visit our Web site at www.competitionbureau.gc.ca.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It 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