" C" Division - News Releases

COLT Targets an Organization Suspected of Involvement in
Mass Marketing Fraud

MONTRÉAL, Tuesday, October 9, 2007 – COLT Special Squad (Centre of Operations Linked to Telemarketing) conducted a number of searches this morning in Montréal. The police operation targeted a well-structured organization suspected of being involved in mass marketing fraud and believed to have made some 1,500 victims.

So far, the ongoing investigation has led to the arrest of several suspects. The subjects could face charges under the Criminal Code, Competition Act and other relevant acts. The victims of the suspected criminal organization are mainly small and medium size businesses, not only Canadian but also American and even European.   

Three types of scams
The scammers reportedly used three schemes to pocket money illegally. In a first scheme, the telemarketers, pretending to represent a federal health agency, told the persons on the line that businesses were required under the law to have a first aid kit on their premises and offered to sell them such a kit if the company did not already have one. Of course, they never mentioned that the price asked for the kits was much higher than their real value.

In the second scheme, the telemarketers allegedly posed as office supplies dealers and sent paper products to businesses. When a client, surprised by the high cost of the supplies, tried to return the items, the so-called supplier threatened to sue the company claiming that the returns deadline had expired. Finally, in a third scheme, the telemarketers promoted the sale of a telephone directory promising to publish the client’s name and address which, in fact, never appeared in the delivered directory.

A priority for the RCMP
Mass marketing fraud is a serious crime committed through structured criminal operations. The consequences of this form of economic crime, against persons or businesses, are devastating for the victims and consumer confidence. This crime also known as "white-collar crime” constitutes one of the priorities of the RCMP. Integrated policing and international agreements help increase the efficiency of investigations on this type of crime. Criminals operating mass marketing fraud ring as well as individuals engaged in these illegal activities will always be targeted by the partners in COLT.

COLT involves the Royal Canadian Mounted Police (RCMP), Sûreté du Québec (SQ), City of Montreal Police Service, Canada Border Services Agency (CBSA), Canada Competition Bureau – Québec Region, as well as American partners such as the US Homeland Security (ICE), US Postal Service, Federal Trade Commission and Federal Bureau of Investigation.

Keeping informed to prevent fraud
Being aware and keeping informed of the various scams used by criminals will help prevent mass marketing fraud.  Essentially, all mass marketing scams require victims to send money in the form of a certified cheque or money order to receive a prize, a product or a service.

COLT is appealing to the public both in Canada and the United States to report any information on the existence of a mass marketing fraud ring. All criminal intelligence will help us combat criminal organizations involved in this type of crime. Victims are invited to contact the Canadian Anti-Fraud Call Center (Phonebusters) at 1 888 495-8501.

To help consumers protect themselves against this type of crime, they are invited to visit the RCMP Internet site at the following address: www.rcmp-grc.gc.ca/qc/pro_ser/colt/accueil_colt_e.htm.

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For information:

Corporal Élaine Lavergne
Media Relations Officer
Communications Office
514-939-8308