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CCCA_V6No1_DawnRaid-FIN_CCCA_V6No1_DawnRaid 2/13/12 10:07 PM Page 25 I t’s early Monday morning and you get a call from granted an ex parte order to launch an orchestrated Cover the office. One of your company’s managers is in a series of surprise search and seizures — or “dawn panic because several people are standing outside her raids” — on five sites, beginning in July 2010. The door, asking her to give them access to several files. She dawn raids and the wiretaps, coupled with the co- tells you that investigators from the Competition operation of two companies who took advantage of Bureau had arrived unannounced at reception produc- the Bureau’s immunity and leniency program, led to ing a search warrant. She needs your legal advice. criminal charges. In January, Domfoam International Unlikely? Possibly. Then again, businesses that Inc. and its affiliate Valle Foam Industries (1995) Inc. have been subjected to a dawn raid will tell you that pleaded guilty to four counts of conspiracy under the it can happen. Competition Act and were fined a total of $12.5-million. Consider what happened to Montreal-based Dawn raids are commonly used by regulatory Domfoam International Inc. and its affiliate Valle authorities, particularly competition law agencies, Foam Industries (1995) Inc. In early 2010, the worldwide. And for good reason: they work. Dawn Competition Bureau began investigating their raids almost always take place when companies least involvement in a suspected price-fixing cartel for expect it, at the beginning of the day and usually at the polyurethane foam products used mainly in furniture beginning of the week. Typically a team ranging from and bedding. The Bureau, in conjunction with its for- five to 15 commerce officers of the Competition eign counterparts, was intent on using surprise and Bureau show up unannounced at the lobby of a busi- speed to gather its evidence. ness, with warrants in hand that gives them the right to It had permission to use wiretaps and had been enter and search the premises. “Our primary tool in Corporate counsel, be prepared. In matters of enforcement, the element of surprise is the secret to catching the prize. By Luis Millán PRINTEMPS 2012 CCCA Canadian Corporate Counsel Association 25