US embassy cable - 05MONTREAL123

UNCLAS MONTREAL 000123 
 
SIPDIS 
 
STATE FOR WHA/CAN EVELYN WHEELER 
 
OTTAWA FOR DHS/ICE, POL, PD AND CONS 
 
 
E.O. 12958: N/A 
TAGS: KCRM, PINS, SOCI, CA, Telecommunication 
SUBJECT:  U.S-Canadian Law Enforcement Partnership 
Dismantles Fraudulent Telemarketing Ring in Montreal 
 
 
On February 3, 2005, Project COLT, the U.S.-Canadian law 
enforcement task force to combat telemarketing fraud, 
successfully completed an operation known as Project CORAL. 
The task force's 18 months of collaborative work led to 28 
arrests and culminated with the dismantling of a fraudulent 
telemarketing ring alleged to have defrauded over 100,000 
victims to the tune of approximately $US 45 million.  Law 
enforcement agencies that partnered on this operation 
included: Royal Canadian Mounted Police, Quebec Provincial 
Police, Montreal City Police, Canadian Competition Board, 
U.S. Federal Bureau of Investigation, U.S. Department of 
Homeland Security and U.S. Postal Inspector Service. 
Project CORAL received wide media coverage (Feb 3-4). 
 
Two individuals arrested in Montreal were charged with 
leading the scheme alleged to have misrepresented pre- 
approved bank loans for low-income U.S. residents with poor 
credit.  For a fee of three hundred US dollars (US$300), the 
bogus company reportedly made unsolicited calls to offer a 
"guaranteed" credit card.  While some victims received a 
manual on how to repair poor credit, none of them are known 
to have received a credit card.  Also arrested, was a former 
HSBC Bank USA Vice President (out of the Manhattan, NY 
office), alleged to have facilitated the scheme by selling 
to the bogus company the credit manuals that were provided 
to some victims instead of the "guaranteed" credit cards. 
 
ALLEN