OTTAWA - Charges have been laid against a deceptive telemarketing operation based in Toronto that allegedly defrauded almost 100,000 Americans. The operation is the largest of it’s kind to be charged under the Competition Bureau.

Acting under the name First Capital Consumers Group, the scam offered MasterCard or Visa credit cards to people with poor credit history, with the condition that applicants pay a one time, upfront processing fee. It is estimated that the operation grossed $20 million (US) in these upfront fees over the past year, while no credit cards were ever received by the applicants. The accused also went by the names U.S. Guardian United Consumers and Trans America United Benefits Group.

The charges were laid by the Competition Bureau after a cross-border investigation. In Canada the scam was being run out of boiler rooms in the Toronto area. Approximately 1,200 complaints from people in Canada and the U.S. were made between October 2001 and July 2002.

"Law enforcement agencies on an ongoing basis are working together to combat this sort of crime," said OPP Detective Superintendent William Crate. "If you receive an unsolicited telephone call seeking personal information about you and your assets, REMEMBER, you are talking to a stranger."

The Competition Bureau can be found online at http://strategis.ic.gc.ca/SSG/ct01250e.html.

 

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