Competition Bureau investigation leads to criminal charges related to deceptive telemarketing operations

Ottawa, March 17, 2008 – Criminal charges were laid against four individuals allegedly involved in deceptive telemarketing activities in Quebec, the Competition Bureau announced today.

These activities are estimated to have generated approximately $9.3 million in revenue during the alleged scam which targeted small and medium businesses by charging them for CD directories that they did not order.

“Small and medium sized firms are especially vulnerable to being victimized by deceptive telemarketers,” said Andrea Rosen, Acting Deputy Commissioner of Competition. “Fraudulent activities that target companies and consumers are of great concern to the Competition Bureau. We encourage consumers and companies alike to recognize fraud, report it and stop it.”

The accused are Hiep Manh (Ty) Nguyen, 35, of Victoria, owner and president of Global Management Solutions-GMS (9125-8954 Quebec Inc.) and Commutel and Marketing USA (9125-8947 Quebec Inc.); Anh-Phong Vo, 35, of Edmonton, president of Commutel and Marketing USA; Byron Stezko, 28, of Montreal, president of Commutel; and Cory Kornelson, 35, of Montreal, president of Global Management Solutions-GMS.

Telemarketers promoting a CD directory containing information about various companies and organizations contacted small and medium businesses between January 1, 2003, and February 23, 2005. The telemarketers allegedly led victims to believe that they were already a customer of the telemarketing company or that the product was being offered free of charge. However, victims were sent an invoice if they kept the CD, or if the CD was returned, they had to pay a separate charge.

The Bureau received 720 complaints, through the U.S. Federal Trade Commission, the Better Business Bureau and the Canadian Anti-fraud Call Centre (PhoneBusters). The investigation was conducted with the assistance of the Service de police de la Ville de Montréal.

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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Pamela Wong
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