OPP Crack Major Cross Border Telemarketing Scheme

COLLINGWOOD, ON, April 9 /CNW/

Members of the Ontario Provincial Police Anti-Rackets Section have arrested and charged four individuals and three corporations in connection with a Canadian telemarketing scheme that may have cost more than 10,000 Americans in excess of $3,000,000 U.S. An arrest warrant has been issued for a fifth individual.

The charges are the result of an intensive 11-month investigation into cross border telemarketing agencies being operated by a group of Collingwood, Ontario companies under the names of Consumer Alliance, Cranberry Place Promotions and Bio Source Financial. These agencies represented locations from Collingwood, Walkerton, Barrie and Owen Sound. Three search warrants were executed this morning in Collingwood.

High pressure sales pitches were used to target elderly American consumers in the sale of low interest rate credit cards for an advance fee ranging from $299 to $399 in U.S. funds. After the sale, some of the consumers received a package of worthless information that did not include the low interest rate credit card that was offered and purchased.

"This scheme took advantage of the vulnerability and trust of elderly people who did not fully understand what was being offered to them, and were often not aware a charge was being immediately applied to their credit card account," said OPP Detective Superintendent Bill Crate.

Combining their efforts in the investigation were: OPP Anti-Rackets, the United States Federal Trade Commission, the United States Postal Inspection Service, the Toronto Strategic Partnership, Toronto Police Fraud Squad, Barrie Police Service, Owen Sound Police Service, the Ministry of Consumer and Business Services, and Canada's Competition Bureau.

"Older Americans that bought credit card protection did need protection -- from the telemarketers who were selling it," said C. Steven Baker, Director of the U.S. Federal Trade Commission's Midwest Region. "Today's action shows that law enforcement agencies are working closely to target scams that want to reach out and touch consumers' wallets across the border."

OPP D/Supt. Bill Crate said: "Telemarketing crimes are a major problem nationally and globally, generating millions of dollars for criminal organizations. These victims, who are predominately seniors, have been known to lose their life savings, leading to a decline in their quality of life."

The following people have been charged with fraud over $5000: Gordon Floyd LEVOY, 55, of Mariners Haven, Collingwood, Ont. Jason WILLIAMS, 29, of First Street, Collingwood, Ont. Pauline BRANDT, 23, of Patton Road, Barrie, Ont. Sheryl CAMPBELL, 34, of Jackson Street, Walkerton, Ont. An arrest warrant has been issued for: Daniel Vincent LONGO, 41, of 33rd Street, Wasaga Beach, Ont.

The following companies have also been charged: Cranberry Place Promotions 101 Pretty River Parkway Collingwood, Ont. Bio Source Financial Inc. 115 Hurontario Street Suite 217 Collingwood, Ont. 1299153 Ontario Inc. 115 First Street Suite 217 Collingwood, Ont.

Note: the commercial address listed above are postal boxes only. Photographs of the locations used by these companies are available at http://www.gov.on.ca/opp/ or by clicking on http://files.newswire.ca/156/CollingwoodBoilerRoom.jpg http://files.newswire.ca/156/OwenSoundBoilerRoom.jpg http://files.newswire.ca/156/WalkertonBoilerRoom.jpg The investigation continues.