United States v. Terrence Croteau
Case No. 05-30104-DRH
Pinacle Publishing; MDSC Publishing Business Directory Scam
UPDATED FEBRUARY 14, 2007
On November 2, 2006, Terrence Croteau was sentenced to a term of imprisonment of 151 months in the custody of the U.S. Bureau of Prisons. The sentence followed a guilty plea on May 16, 2006.
On June 21, 2005, a federal grand jury in the Southern District of Illinois returned a 29 count indictment against Terrence Croteau, then age 30, of Welland, Ontario. The charges arose out of an investigation conducted by the U.S. Postal Inspection Service with substantial assistance from the Federal Trade Commission in Chicago. The Niagara Regional Police Service in Ontario and the Ontario Provincial Police, assisted by the Toronto Police Service, conducted a concurrent investigation. The investigation resulted from the efforts of the Toronto Strategic Partnership, a partnership consisting of regulatory and law enforcement agencies in the United States and Canada formed to address cross border mass marketing fraud.
The indictment alleged that the Defendant operated a business directory scam out of Montreal, Quebec and Welland, Ontario between 2000 and the late spring, 2004. The Indictment alleged that the Defendant employed telemarketers who telephoned U.S. businesses under the false pretenses that they were from a legitimate business which published business directories, including an on line business directory on the Internet. The Indictment alleged that the Defendant’s telemarketers used a variety of deceptive tactics to close sales, including duping businesses into thinking that they were renewing or continuing supposedly pre-existing listings, or simply confirming a shipping address. Defendant operated under the names of Pinacle Publishing and MDSC Publishing in connection with the scam.
Defendant was arrested on June 10, 2005 in Newark, New Jersey after a flight from Cancun, Mexico, having been expelled from Mexico by Mexican immigration officials.
On May 16, 2006, Croteau entered a guilty plea to 25 counts of the 29 count indictment.
The defendant has agreed to cooperate with the United States government in connection with ongoing investigations. His cooperation may result in a motion filed by the United States to reduce his sentence based upon his co-operation. Such motions are usually granted by the Court. The United States Attorney for the Southern District of Illinois rarely recommends that a sentence be reduced in an amount in excess of one third for a defendant’s co-operation. In the federal system, parole has been abolished. A defendant generally serves 85% of his sentence, with a 15% reduction available for “good time.”
While the Court also ordered restitution as part of its sentence, there does not appear to be any remaining assets from which to pay restitution and the government does not currently anticipate that any assets will be available in the future to pay restitution.
Court Pleadings
The following are public filings with the court in Adobe Acrobat format.
• Croteau Indictment
FTC Civil Action
The Federal Trade Commission also filed a civil action against the defendant. Copies of the FTC’s press releases in connection with this litigation, with links to their Court filings, are as follows:
• July 21, 2004 [http://www.ftc.gov/opa/2004/07/pinacle.htm]
• June 22, 2005 [http://www.ftc.gov/opa/2005/06/pinacle.htm]
Victim Rights
Title 18, United States Code, Section 3771(a) provides:
A crime victim has the following rights:
(1) The right to be reasonably protected from the accused.
(2) The right to reasonable, accurate, and timely notice of any public court proceeding, or any parole proceeding, involving the crime or of any release or escape of the accused.
(3) The right not to be excluded from any such public court proceeding, unless the court, after receiving clear and convincing evidence, determines that testimony by the victim would be materially altered if the victim heard other testimony at that proceeding.
(4) The right to be reasonably heard at any public proceeding in the district court involving release, plea, sentencing, or any parole proceeding.
(5) The reasonable right to confer with the attorney for the Government in the case.
(6) The right to full and timely restitution as provided in law.
(7) The right to proceedings free from unreasonable delay.
(8) The right to be treated with fairness and with respect for the victim's dignity and privacy.
Since there are a very large number of victims in this prosecution, this case has been designated a “Multiple Crime Victim” case by Court Order under the provisions of 18 U.S.C. §3771(d)(2). Accordingly, the principal means of communicating and consulting with the investigators and government lawyers in this case will be through the mailing each victim received, the Victim Notification System described in the letter each victim received, this web site, and through the completion of the “Contact Us” form below.
Victim Notification System Webpage and Call Center
Each crime victim should have received a letter with a “Victim ID” (“VIN”) and a VNS Login ID (“Password”). A crime victim will need this information in order to access the Victim Notification System web page and receive information about this case. When a crime victim enters his or her “VIN” and “Password,” the web page will then open with information pertaining to the particular case. The web site also describes the Department of Justice Victim Notification System and has links to the Office for Victims of Crime, the U.S. Postal Inspection Service, the FBI and the Federal Bureau of Prisons. There are also links to pages discussing victim’s rights. When the victim logs on to the VNS system, there will be a place to enter an email address and receive automatic notifications in the particular case.
The Victim Notification System also maintains a toll free telephone number. A victim may also call 1-866-DOJ-4YOU (1-866-365-4968) for information on upcoming events, historical Court events and detailed information on each defendant in this case. The caller will need to enter a victim identification number and Password on the telephone key pad before information about the particular case may be accessed.
• Victim Notification System Webpage (click here)
• Victim Notification System Call Center : 1-866-DOJ-4YOU (1-866-365-4968)
Contact Us
If you are a victim, and wish to contact us, please send an email to us at USAILS.VW_ILS@usdoj.gov. Please provide your full name, mailing address, telephone number, and email address. Given the large number of victims in this matter, and our need to efficiently manage our multiple victim prosecutions, we ask that you communicate with us by email.
United States Attorney’s Office
Southern District of Illinois
9 Executive Drive
Fairview Heights, Il 62208