Competition Bureau investigation leads to convictions in business directory scam

OTTAWA, April 26, 2004 – A Competition Bureau investigation has led to a jury in Toronto convicting four individuals after a five-week trial for their involvement in the Yellow Business Directory.com scam.

Alan and Elliot Benlolo were found guilty on 10 counts under the false or misleading representations provisions of the Competition Act (Section 52) and will be held in custody until sentencing. Also convicted were Victor Serfaty on eight counts and Simon Benlolo on two counts for their involvement in the operation.

The individuals sent out mail pieces that falsely appeared to be bills or invoices from Bell Canada or the Yellow Pages, when in fact they were solicitations to have their business details appear in internet-based directories operating under the names Yellow Business Pages.com and Yellow Business Directory.com. Between May and December 2000, they sent mail to virtually all businesses and non-profit organisations in Canada and generated sales of over $1 million.

The Competition Bureau received more than 4,400 complaints about the phoney invoices which asked recipients to send either $25.52 or $37.40 to a postal box in Toronto.

"This case shows that the Competition Bureau is prepared to prosecute deceptive mail scams that target Canadian consumers and businesses and to seek appropriate sentences," said Dominique Burlone, Acting Deputy Commissioner of Competition, Competition Bureau. "While sentencing is always at the discretion of the Court, Crown counsel will be seeking prison sentences in this matter."

Under Section 52 of the Competition Act, the offences carry a maximum penalty of five years of imprisonment, a fine in the discretion of the court or both.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For media enquiries, please contact:

Purvi Radia
Communications Advisor
Communications Branch
(819) 953-8679

For general enquiries, please contact:

Information Centre
Competition Bureau
(819) 997-4282
1-800-348-5358