Alleged fraud ring busted in Montreal
October
2007 MONTREAL – A total of more than 160 police officers from various
forces executed search warrants on five Montreal-area locations Tuesday
in connection with an alleged international telemarketing fraud ring
that targeted small businesses.More than 100 arrests were expected at
what RCMP Cpl. Elaine Lavergne described as the suspected headquarters
of the ring downtown Montreal.Complaints were received from Canada, the
U.S., Belgium, France, Switzerland and other European locations, said
Diane L’Ecuyer, assistant deputy commissioner of the Competition
Bureau.She said an investigation involving the Competition Bureau has
been underway for more than one year and that initial complaints were
received in 2004.
The alleged ring sold first-aid kits, toner
and ink supplies and directory listings at what L’Ecuyer described as
“inflated prices.” She said that a first-aid kit valued at $40 was
being sold for almost $500. Other supplies being sold included fax
paper, ink, ribbons and toner, she said.The forces involved in the
investigation include the RCMP, Surete du Quebec, Montreal police, the
U.S. Postal Service, the U.S. Federal Bureau of Investigation and the
U.S. Federal Trade Commission, Lavergne said.In the early afternoon
small groups of what appeared to be office workers were being escorted,
some with hands bound with tie-wraps, onto three school buses.Some were
carrying what appeared to be personal possessions. Some had coats on
their heads masking their faces. They appeared to be a diverse group in
age range.No charges have been laid yet, but charges are expected,
Lavergne said. The basis for charges would be under anti-fraud
provisions in the federal Criminal Code and under the federal
Competition Act, Lavergne and L’Ecuyer said.