Competition Bureau Canada

Competition Bureau Canada

December 18, 2008 09:58 ET

15 Years in Jail for Canadian Extradited to U.S. in Deceptive Telemarketing Case

OTTAWA, ONTARIO--(Marketwire - Dec. 18, 2008) - The Competition Bureau announced today that Lloyd Prudenza has been sentenced to 15 years in jail by a U.S. court for his part in a cross-border deceptive telemarketing scheme that defrauded close to 40,000 consumers.

Prudenza, along with David Dalglish and Leslie Anderson, operated a deceptive telemarketing scheme based in Toronto, which purported to offer credit cards to Americans for a fee but never delivered the cards. Earlier this year, Dalglish was sentenced to 19 years and seven months in prison, and Anderson was sentenced to 23 years and four months, for their roles in this scheme. The U.S. Federal Court in the Southern District of Illinois explained, in sentencing Prudenza, the more lenient penalty was due to health problems. All three individuals were jointly ordered to pay over $5 million U.S. in restitution to the victims.

"Our cross border efforts have succeeded in bringing the last individual involved in a scam that defrauded many consumers to justice," said Andrea Rosen, Deputy Commissioner of Competition. "The severity of these sentences should serve as a warning that deceptive telemarketing is treated seriously on both sides of the border."

Prudenza, Dalglish and Anderson were the principal operators behind First Capital Consumers Group, which defrauded close to 40,000 vulnerable 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.

Prudenza, Dalglish and Anderson were arrested following an investigation led by the Competition Bureau. They were charged with offences under the Competition Act and the Criminal Code, including: deceptive telemarketing; conspiracy to commit an indictable offence; fraud; and possession of property obtained by crime. Following a formal request by the U.S. Department of Justice, Prudenza, Dalglish and Anderson were extradited to stand trial in the U.S.

The Competition Bureau acknowledges the initiative and substantial efforts of all its partners in Canada and the United States, in particular, the United States Attorney's Office in the Southern District of Illinois, the Canadian and U.S Departments of Justice, the United States Postal Inspection Service in St. Louis, and the Federal Trade Commission, Midwest Region, in Chicago.

The Bureau worked on the investigation with its partners in the Toronto Strategic Partnership, which also includes the Ontario Provincial Police, the Toronto Police Service, the RCMP, Ontario's Ministry of Small Business and Consumer Services, the Canadian Anti-fraud Call Centre (PhoneBusters), the U.S. Federal 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 independent agency that contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

Contact Information

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