Telemarketer Sentenced to Jail

OTTAWA, September 30, 2005 -- A telemarketer has been sentenced to jail, following an investigation by the Competition Bureau into a deceptive telemarketing scam, operating from call centres in Toronto, Montréal and St. John’s, Nfld.

Earlier this month, Justin Pold, 37, of Montreal, who was in charge of the directories scam for International Business Directories, was sentenced to 18 months in prison. Pold also received two years probation, a seven-year prohibition order under section 34(2.2) of the Competition Act as well as an order prohibiting him from participating in any activity involving the sale of office supplies or business directories by telemarketing.

As part of the scam, not-for-profit organizations, businesses and government agencies in Canada, the United States and the United Kingdom were contacted by telemarketers who claimed to be the regular supplier of office supplies or were renewing a business directory order. The telemarketers failed to disclose material information, such as the terms and conditions of delivery, which included a 20% return fee. Businesses would then receive office supplies or directories that they would not have ordered were it not for these false and misleading representations.

Also charged were the corporations, which operated under a number of businesses, including Commercial Business Supplies, Merchant Transaction Supplies, Merchant Supply Services, and International Business Directories, 153595 Canada Inc., 162013 Canada Inc., 162014 Canada Inc., 174440 Canada Inc., M.M. International Business Directories Ltd., and 3350550 Canada Inc. These companies generated sales of over $100-million during a six-year period.

"Everyone is a potential target of deceptive telemarketing," 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."

Other individuals involved in the scam have already plead guilty and were given sentences: Randolph Misiurak, 40, Montreal, and Stéphane Ouellet, 39, Montreal. Charles McCulloch, 39, Toronto, received a conditional discharge and François Lefort, 37, Montreal, received an unconditional discharge.

A trial date has been set for Michael Mouyal, 42, Montreal, for March 20 - April 28, 2006, before the Court of Québec at the Palais de justice in Montréal. Mr. Mouyal was the alleged directing mind.

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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