MONTRÉAL, Thursday, February 1st, 2007 - The Centre of Operations
Linked to Telemarketing (COLT), led by the Royal Canadian Mounted Police
(RCMP), assisted the Ontario Provincial Police, Barrie Police Service
and US Federal Trade Commission in the execution of a search warrant
this morning at 911, Ogilvy Street, Montréal in order to dismantle
a telemarketing fraud ring. Other searches were also conducted in Barrie
and Toronto, Ontario.
The investigation was launched a few months ago by the Barrie Police
Service, Ontario Provincial Police and US Federal Trade Commission after
complaints were made to the US Federal Trade Commission by victims in
the United States.
The individuals involved in the telemarketing fraud ring were pretending
to represent a company called Select Management. They targeted consumers
with poor credit history and offered them to consolidate their debts
and reduce the interest rates on all their credit cards.
$675 in exchange for lower interest rates
The alleged fraudsters claimed that they had special arrangements with
credit card companies allowing them to obtain interest rates as low
as 4.74% to 9% for their "clients". To take advantage of
this offer, consumers had to pay $675 plus $20 shipping and handling
to receive the documents. Fraudsters told their victims that they could
save them up to $2,500, otherwise they would be refunded.
Upon accepting the offer, victims received a form on which they were
asked to list all their debts: credit cards, medical bills, personal
loans, mortgages, etc. with all the details on each debt: current balance,
credit limit, interest rate, suggested minimum payment, amount normally
paid, etc.
Then, when the so-called Select Company received the information, one
of its "representatives" would phone the consumer in a three-way
call with an alleged credit card company which was asked to reduce the
interest rate on the consumer’s credit card. The answer was no,
and the consumer never recovered the $675 paid.
Colt is calling on the public
COLT was created in 1998
to fight telemarketing fraud. It is made up of members of the Royal Canadian
Mounted Police, Sûreté du
Québec, Montréal Police Service, Competition Bureau of Canada,
US Homeland Security (ICE), US Postal Service, US Federal Trade Commission
and Federal Bureau of Investigation.
The COLT partners encourage the public to help fight criminal organizations
by reporting any information on fraudulent scams to Phonebusters at 1
888 495-8501.
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For information
Montréal search:
Cpl. Élaine Lavergne
Royal Canadian Mounted Police
Montréal Communications Office
(514) 939-8308
Overall operation:
Sgt. Dave Goodbrand
Barrie Police Service
Ontario
(705) 725-7025
