A Toronto businessman has been given a two-year prison term after being convicted in a fraudulent, $158-million telemarketing scheme, the federal Competition Bureau says.
"The Bureau welcomes this decision, which sends a strong message to scammers who deliberately cause harm to businesses and consumers through deceptive telemarketing schemes," said Andrea Rosen, deputy commissioner of competition, in a news release issued Monday.
She was commenting of the case of Bernard Fromstein, 57.
He is the founder and former president of DataCom Marketing Inc. He pleaded guilty recently in Ontario Superior Court to five charges of deceptive marketing under the telemarketing provisions of the Competition Act.
The scheme stemmed from a business directory scheme.
Telemarketers from DataCom contacted businesses in Canada and the U.S. claiming to be updating information in their business directory listings.
They used something the bureau calls an "assumed sale" technique. They would imply the businesses and previously ordered a listing and that someone in the company had already authorized a new order.
"The telemarketers failed to disclose which company they represented, the price of the product, the terms and conditions to return it, the purpose of the call and the nature of the product, as required by the telemarketing provisions of the Competition Act," the release said.
Another man, Paul Barnard, 57, has previously received a two-year conditional sentence in connection with this matter. He has been given a life prohibition from participating in telemarketing activities.
Fromstein received a 10-year ban.
Charges are pending against three other individuals, along with the corporate entities DataCom Marketing Inc. and DataCom Direct Inc.
Two of those individuals are located in St. Hubert, Que., a Montr�al suburb.
"Recognizing the seriousness of deceptive telemarketing, the bureau recently launched Operation Mirage, a campaign designed to combat business directories scams, targeting 50 locations in the greater Montreal area," the release said.
"This action was conducted under the newly amended Competition Act, which allows for significantly higher penalties for those convicted of criminal telemarketing offences."
