Winnipeg Free Press
Winnipeg Telemarketing Company Pleads Guilty to
Fraud in Massive Scam
WINNIPEG -- February 5, 2004 -- A telemarketing company whose
co-founder recently committed suicide pleaded guilty to one
count of fraud over $5,000 Wednesday in what's believed to
be one of the largest commercial scams in Manitoba history.
National Info-Tech has agreed to pay a significant fine,
the amount of which will be made public at sentencing hearing
later this month.
John Nguyen, the man behind the company, leapt to his death
last December from a downtown hotel room. Nguyen, 29, had
been charged with fraud as had his mother, Thi Ngoc Hai Vo,
a shareholder in the company, and two employees, Daniel Rautavuori
and Odessa Rosati. Charges against all three were stayed Wednesday.
``The Crown's case changed substantially with John Nguyen's
unfortunate suicide,'' said Crown attorney Tony Kavanagh.
It was alleged that millions of dollars were lost due to fraud
surrounding the sale of a CD-ROM business index by the Winnipeg-based
company. Most of the victims were in the United States.
A salesperson would call a company to confirm the company's
address for inclusion in a directory called the International
Business Index. Often the call was taped and played back later
to the company to show that an order was placed, even though
the recipient of the phone call was simply confirming a mailing
address. Another person would call the company to say the
directory is on its way, along with a bill for more than $300
US.
The directory, according to some complainants, was useless
and the information contained in it was over five years old.
RCMP began investigating after receiving complaints from Better
Business Bureau offices in the U.S.
National Info-Tech's only two shareholders are Vo and Jane
Nguyen, John's widow. Although its Manitoba operations are
now defunct, Kavanagh said money has been set aside by the
company to pay the fine.
National Info-Tech also had call centres in Victoria and
Montreal. RCMP Sgt. Steve Saunders said no charges have been
laid in either province concerning National Info-Tech.
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