Montréal, Wednesday, July 9, 2008 - The Centre of Operations Linked to Telemarketing Fraud (COLT) specialized team dealt a blow this morning to a well-structured organization suspected of engaging in mass marketing fraud and identity theft. As a result of this still ongoing investigation, a number of money transfer outlets used by the criminal organization relying on employees as accomplices were shut down today.
The organization allegedly stole money from more than 500 people who fell prey to one of the scams devised by the suspects. Some of the victims lost the money they sent believing they were participating in a lottery. These victims received a call from so-called telemarketers telling them they had won a large sum of money in a lottery. In order to receive their prize, which they never did, the victims were asked to send money to pay duties or some administrative fees. The money they sent was stolen from them.
Others never recovered the money they sent to the suspects after they were led to believe they were helping someone in distress. The victims received from the alleged fraudsters a cheque that was supposed to be used to help the person in distress and were asked to deposit it and send back part of the money. Since the cheques sent by the suspects were bogus, the victims, in addition to losing their money, had to pay bank fees.
Some 150 police and peace officers took part in today's police operation, called Project Calculateur. They conducted nineteen searches in businesses located in Verdun, La Salle and Lachine.
The purpose of these searches carried out as part of an ongoing investigation was to obtain further evidence that could lead to the prosecution of the suspects linked to the alleged criminal organization. The searches targeted businesses with MoneyGram and Western Union outlets. Both these companies are cooperating with the investigation and will close 25 suspected offending locations where it is believed the alleged criminal ring asked the victims to deposit their money to take part in the fake lottery or help someone in distress.
Identity Theft
The criminal ring is also suspected of making counterfeit drivers' licences and social insurance cards with data stolen from genuine cheques. With these forged documents, the counterfeiters were able to open bank accounts and obtain payment cards under false identities, and then use these cards to steal from financial institutions.
No charge has been filed for the moment. The investigation is still ongoing. The suspects taken in for questioning this morning could face fraud charges under the Criminal Code.
The Royal Canadian Mounted Police, which has made economic integrity a priority, wants to raise awareness about this ongoing investigation and warn consumers against mass marketing fraud which may take many forms.
The Many Forms of Mass Marketing Fraud
Mass marketing fraud refers to the sale of all kinds of products and services, including appeals for charitable donations. Essentially, all mass marketing scams require victims to send money in the form of a certified cheque, money order or electronic money transfer to receive a prize, a product or a service.
This type of crime is growing – it knows no boundaries. Mass marketing fraud can be committed using an array of communications mediums: postal service, e-mail, telephone and the Internet.
To help consumers protect themselves against this type of crime, we invite them to visit the RCMP Internet site at the following address: www.rcmp-grc.gc.ca/qc/pro_ser/colt/accueil_colt_e.htm
$25 Million Returned to Victims
Mass marketing fraud is a serious crime often committed by structured criminal organization. The consequences of this form of economic crime, against persons or businesses, can be devastating for the victims and consumer confidence. The COLT team will focus its efforts on the fight against criminal organizations specialized in the types of fraud that pose a threat to Canada's economic integrity.
COLT is one of the most efficient mass marketing fraud prevention and disruption programs. Since it was created, this program has made it possible to return $25 million to victims of this type of fraud in North America.
COLT includes the Royal Canadian Mounted Police, Sûreté du Québec, City of Montréal Police Service, Canada Border Services Agency, Canada Competition Bureau as well as American partners such as the US Homeland Security, US Postal Service, Federal Trade Commission and Federal Bureau of Investigation. For Project Calculateur, the COLT team also relied on the cooperation of Canada Post.
All criminal intelligence information will help us stop criminal organizations involved in this type of crime. Victims are invited to contact the COLT team at 514-939-8304 or the Canadian Anti-Fraud Centre at (Phonebusters) at 1-888-495-8501.
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Constable Kathy Brousseau
Media Relations Officer
Communications Office
514-939-8308
