Ottawa, July 30, 2008 – The Competition Bureau announced today that three Canadians who operated a deceptive telemarketing scheme based in Toron nto, which purported to offer credit cards to Americans for a fee but never delivered the cards, have been found guilty. Two of the three have been sentenced to a combined 42 years in prison by the U.S. Federal Court in the Southern District of Illinois. This is the first time a Competition Bureau investigation has resulted in extradition.
Lloyd Prudenza and David Dalglish pleaded guilty, while Leslie Anderson was found guilty on charges of conspiracy, mail fraud and wire fraud. Dalglish was sen tenced to 19 years and seven months in prison, and Anderson was sentenced to 23 years and four months in prison. Both Dalglish and Anderson were also sentenced to five years of mandatory supervision on release, and were ordered to pay over $5 million U.S. in restitution. Prudenza's sentencing has been delayed to Oct. 1, 2008.
"These sentences send a clear warning to deceptive telemarketers everywhere that there is no such thing as a safe haven for fraud," said Andrea Rosen, Act ing Deputy Commissioner of Competition. "Law enforcement is working together on all fronts and across all borders to bring them to justice."
Prudenza, Dalglish and Anderson were the principal operators behind First Capital Consumers Group, which defrauded close to 40,000 American consumers who had poor credit histories. Working out of boiler rooms in Toronto in 2001-2002, telemarketers targeted U.S. residents, claiming they had been approved for a MasterCard or Visa credit card. The victims were required to pay a one-time processing fee (approximately $200 U.S.) prior to receiving one or both cards, but never received a valid credit card. This deceptive telemarketing operation generated approximately $8 million U.S.
Prude nza, Dalglish and Anderson were originally arrested in 2002, following an investigation led by the Competition Bureau. They were charged with offences under the Competition Act and the Criminal Code. The charges included: deceptive telem arketing; conspiracy to commit an indictable offence; fraud, and possession of property obtained by crime. The U.S. Department of Justice made a formal request in 2003 to the Canadian Minister of Justice for the extradition of the accused to stand trial i n the United States. In 2007, after exhausting all levels of appeal, Prudenza, Dalglish and Anderson were extradited to the U.S.
The Bureau worked on this investigation with its partners in the Toronto Strategic Partnership, which also includes the Ontario Provincial Police, the Toronto Police Service, the RCMP, the Ontario Ministry of Small Business and Consumer Services, PhoneBusters: the Canadian Anti-Fraud Call Centre, the U.S. Federa l Trade Commission, the U.S. Postal Inspection Service and the UK's Office of Fair Trading. The partnership is a multi-law enforcement agency task force formed to combat cross-border fraudulent mass marketing.
The Competition Bureau is an indepe ndent agency that contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.
For media enquiries, please contact:
Pamela Wong
Communications Advisor
External Relations and Public Affairs Branch
819-953-7734
For general enquiries, please contact:
Information Centre
Competition Bureau
819-997-4282
Toll free: 1-800-348 -5358
TDD (hearing impaired): 1-800-642-3844
compbureau@cb-bc.gc.ca