Canadian Gets 15 Years for Role in Telemarketing Scam

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, according to the Canadian Competition Bureau.

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, according to the agency.

Dalglish was sentenced earlier this year 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 were jointly ordered to pay over $5 million U.S. in restitution to the victims.

The three defendants were the principal operators behind First Capital Consumers Group, which defrauded close to 40,000 vulnerable American consumers who had poor credit histories, according to the Bureau.

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, according to the Bureau.

The three were arrested following an investigation led by the Competition Bureau and charged deceptive telemarketing; conspiracy to commit an indictable offence; fraud; and possession of property obtained by crime, according to the Bureau.

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 Bureau noted.