A Toronto man is facing a two-year sentence in a federal penitentiary for his involvement in a fraudulent telemarketing scheme that generated an estimated $158 million over a 10-year period.
Bernard Fromstein, 57, has also been sentenced to the maximum three years of probation and is prohibited from engaging in any form of telemarketing for 10 years.
Fromstein, the founder and former president of DataCom Marketing Inc., pleaded guilty in the Ontario Superior Court of Justice to five criminal charges under the deceptive telemarketing provisions of the Competition Act.
Fromstein participated in a scheme in which DataCom telemarketers contacted customers in Canada and the United States, claiming that they were updating information in their business directory listings, the Competition Bureau said in a Monday release.
The telemarketers implied that the businesses had ordered a listing in the past and that someone in the company had already authorized an order.
Customers later received a business directory, which they ordered based on the fraudulent representation.