Albertans Charged for Scamming American Businesses

Competition Bureau investigation rounds up telemarketing scammers

OTTAWA, June 15, 2006 - Seven people involved in a Calgary-based scam have been charged following a Competition Bureau investigation into Ambus Registry Inc., a telemarketing operation that allegedly used deceptive techniques to peddle business directories and listings to businesses throughout the United States.

Those charged are:  Garther Cheung, 31; Sukhraj Singh Chana, 27; Janene Cheung, 32; Andrea Kyweriga, 26; Pritpal Chana, 29; and Ranjit Sangha, 26, all of Calgary; as well as Sarah Schaefer, 28, of Crossfield. 

Charges include the following:

• one count each under s.380(1)(a) of the Criminal Code of Canada
• one count each under s.52.1(2)(b) of the Competition Act
• two counts each under s.52(1) of the Competition Act
• two counts each under s.52.1(2)(a) of the Competition Act
• two counts each under s.52.1(3)(a) of the Competition Act

The Competition Bureau received over 170 complaints from American businesses who paid as much as $399 (U.S.) for the business directory. Over a three-year period, between 2000 and 2003, Ambus telemarketers allegedly used an “assumed sale” technique to dupe U.S. businesses and convince them that the purchase of the directory had already been made.

Deceptive telemarketers use this technique to make unsuspecting employees believe that the product in question has already been ordered by their company. Scammers rely on the trust of people, glitches in the accounting system or poor internal communication to get employees to confirm generic information over the phone, which is then used as confirmation of the order.  In this particular case, over 7,000 businesses were allegedly scammed by this type of assumed sale technique.

“Today’s announcement shows that deceptive telemarketers who believe they can hide behind our borders are sadly mistaken,” said Raymond Pierce, Deputy Commissioner.  “The Bureau will not hesitate to go after those who set up shop in Alberta and target Americans, and along with our U.S. partners, will pursue U.S. scammers targeting Albertans.”

This investigation was possible due to efforts of the Alberta Partnership Against Cross-Border Fraud, a bi-national partnership of law enforcement agencies working to combat deceptive marketing practices and/or fraudulent criminal activities originating from Alberta, targeting American citizens, and those activities originating from the U.S. targeting Albertans.

Members of the Alberta Partnership Against Cross-Border Fraud include: Alberta Government Services, Calgary Police Service, Edmonton Police Service, RCMP, United States Federal Trade Commission, United States Postal Inspection Service and the Competition Bureau.

The prosecution of these individuals highlights cooperation between the federal and Alberta governments.  The investigation was undertaken by the Competition Bureau and the prosecution is being conducted by Alberta Justice, Special Prosecutions Branch.

The Bureau produces CD-ROMS and publications on various aspects of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. To find out more about our CD-ROMs and publications, contact the Information Centre: Information Centre Competition Bureau 50 Victoria Street Gatineau QC K1A 0C9 Toll-free: 1 800 348-5358 National Capital Region: (819) 997-4282 TDD (for hearing impaired): 1 800 642-3844 Fax: (819) 997-0324 E-mail: compbureau@cb-bc.gc.ca Web site: www.competitionbureau.gc.ca This publication is only a guide. It provides basic information about the Competition Bureau and the acts it administers. For further information, you should refer to the full text of the acts or contact the Competition Bureau at one of the numbers listed above.

Cat. No. Iu54-5/2006
ISBN 0-662-49102-5

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

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