Canadian Lottery Scam
Closed by Court Order

WASHINGTON, Dec., 12, 2002 -- A U.S. district court has granted a preliminary injunction halting the operation of Canadian telemarketers who illegally marketed lottery tickets to senior citizens in the United States in violation of federal laws.

At the request of the Federal Trade Commission, the court temporarily barred the defendants from selling tickets, chances, or any foreign lottery chances to residents of the United States; barred deceptive claims about the chances of winning the Canadian lottery; prohibited misrepresentations or omissions about material facts; and ordered an asset freeze to preserve funds for consumer redress.

On September 30, 2002, the FTC filed a complaint in U.S. district court in Chicago charging that a group of related companies operated by six Canadians was running telemarketing boiler rooms targeting seniors in an illegal foreign lottery scheme. The FTC alleged that the telemarketers told the consumers that by investing with them, the consumers had a very good chance of winning the Canadian lottery.

According to the FTC, the telemarketers told many consumers that it is legal for U.S. consumers to buy Canadian lottery tickets. They told some consumers that they had already won a large prize and that consumers should send them money to redeem their winnings.

The FTC alleged that the claims were deceptive: the chances of winning the lottery were not good - the odds are long; it is a crime for U.S. consumers to buy Canadian lottery tickets; and the consumers who sent money to redeem large prizes never received them.

Eleven of the 14 defendants now have agreed to abide by the provisions of the temporary restraining order, pending a trial in this matter.

The defendants in the case are World Media Brokers Inc., (also known as 913062 Ontario Inc.,) 1165107 Ontario Inc., (also doing business as Canadian Catalogue, Canadian Catalogue Services, CCS, and Interwin Marketing), Faby Games Inc., (also known as1106759 Ontario Inc., and also doing business as Canadian Catalogue Services and CCS, 624654 Ontario Limited, Express Sales, Express Marketing Services, EMS and First Telegroup Marketing), 637736 Ontario Limited, (doing business as Express Marketing Services and EMS), 537721 Ontario Inc., (also doing business as Canadian Express Club), Express Marketing Services Ltd., (also doing business as EMS, Cash & Prizes, Inc.), Intermarketing Services, Inc., George Yemec, Anita Rapp, Steven Rapp, Paul Teskey, Jean-Paul Teskey, and Dean Temple.

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