SAINT JEROME – Five men from the Laurentian region have been charged with fraud and theft of satellite signals.
These charges, laid in Saint Jerome, Quebec (just north of Montreal) follow an investigation by the Royal Canadian Mounted Police (RCMP) "which carried out a major cyberundercover operation to put an end to the illegal activities of a criminal organization involved in the Internet sale of cards used to pirate satellite signals," says the police force.
This operation named Capricorne was a joint investigation by the RCMP Laurentides-Lanaudière-Outaouais Detachment officers, and Canada Post and Industry Canada investigators.
The project originated from suspicious financial transactions identified by Canada Post investigators. The investigators had observed a considerable number of postal money orders issued to two of the accused for the allowed maximum amount of $999.99. It is believed that between $10,000 and $15,000 were sent weekly to the accused through such money orders.
The subsequent criminal investigation by the RCMP revealed that these postal money orders were used to pay for pirated satellite conditional access cards. Three Internet sites controlled by the accused offered consumers to buy online these cards as well as related items and software. Purchases made online by RCMP and Industry Canada investigators showed that the various illegal electronic components were sold for $25 to $170 a piece, says the RCMP.
The Internet sites used to commit these offences were disabled on June 29, 2005 when the RCMP conducted a series of six searches in the accused residences and at the company La Boîte Principale. This business located in Piedmont was registered under the name of the accused and was used for card programming, storage and piracy.
On July 22, 2005 another search was carried out as part of Project Capricorne in a warehouse in the Saint-Sauveur region. This search led to the discovery of an even larger number of pirate cards and equipment used to pirate satellite television signals. Electronic components, documents related to the sale of these items and approximately thirty computers were found at the various locations searched.
The accused are:
Martin GAUTHIER, 38, of Saint-Sauveur
Allan Bruce MACDOWELL, 46, of Saint-Sauveur
Pierre LEBOEUF, 41, of Bois-des-Filion
Dimas Manuel VEIGA, 41, of Saint-Sauveur
Richard BÉLAIR, 51, of Sainte-Adèle
These five individuals were charged with fraud under section 380(1) of the Criminal Code of Canada and possession of device to obtain telecommunication facility or service under section 327(1) of the Criminal Code of Canada.
A complete analysis of the hard disks on the seized computers made it possible to trace the names and addresses of many clients of this ring. These clients could receive statements of offence.
"The three partners in Project Capricorne wish to reiterate that they will pursue appropriate action in order to enforce applicable laws pertaining to illegal business practices such as fraud and the theft of telecommunications. The theft of satellite signals accounts for losses estimated at more than 100 million dollars annually for the Canadian economy," says the RCMP
"The partners also take this opportunity to promote public awareness of this social evil and to encourage electronic equipment retailers and consumers to refrain from engaging in this illegal trade."
Outside of this operation, a Montreal man, Abdul Kesodia, 35, was found guilty on seven counts for offences under the Radiocommunication Act on September 26th.
The owner of retailer S.M. Électroniques HI FI Inc. in Saint-Léonard, was fined a total of $30,500 and had approximately 80 Dish Network satellite television systems, that are illegal in Canada, seized and destroyed, says the RCMP.
This sentence results from charges laid in 1999 and 2004. The judge Gilles Cadieux of the Quebec Court rendered his decision following a trial that ended on January 10, 2006.
