Competition Bureau Investigation into Deceptive Telemarketing Operation Concludes

Eleven Guilty Pleas and over $18,000 Returned to Victims

OTTAWA, June 20, 2005 – The last of 11 people involved in a deceptive telemarketing operation targeting consumers in Australia was sentenced today for his role in a prize-pitch scam over a five-week period. Gerald Goldstein was sentenced in the Court of Quebec (Judicial District of Montreal) to a two-years-less-a-day conditional sentence, followed by two years probation and a $20,000 fine.

In addition, Justice Jean-Pierre Bonin authorized the Competition Bureau to return over $18,000 in cheques to 14 victims of the scam which were seized during the Bureau’s investigation.

"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."

A Bureau investigation into the deceptive telemarketing activities of Alexis Corporation (3636135 Canada Inc.) and 3587932 Canada Inc., has resulted in 11 individuals being charged, pleading guilty and receiving sentences for their roles in this scam. 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. The other 10 individuals received the following sentences:

April 1, 2005

- Scarlet Jove: 12-month conditional sentence, two years probation and 50 hours of community service

March 30, 2005

- Armenia Linhares: six-month conditional sentence, two years probation and 100 hours of community service

March 11, 2005

- Sheldon Cutler: 20-month conditional sentence, two years probation and a $20,000 fine

- William Kenwood: six-month conditional sentence, two years probation and 100 hours of community service

January 13, 2005

- Constantina Athanasopoulos: 15-month conditional sentence and two years probation

January 20, 2003

- 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, 12 months probation and 100 hours of community service

- Lawrence Walsh: 12 months probation, 100 hours of community service and a $1,000 fine

October 21, 2002

- Doron Kunin: 16-month conditional sentence

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 telemarketers allegedly 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.

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

For general enquiries, please contact:
Information Centre
Competition Bureau
(819) 997-4282; 1-800-348-5358