Quebec’s financial services regulator has launched penal proceedings against six individuals accused of an illegal distribution.
The Autorité des marchés financiers (AMF) said Tuesday its suit consists of 106 charges, and that it is seeking fines of almost $1.7 million in the case, involving the alleged illegal distribution of securities of Millenia Hope. The allegations have not been proven. Several of the individuals charged in the case have already been sanctioned in other regulatory actions.
According to the regulator, Leonard Stella, the founder of Millenia Hope and its former chairman and CEO, is facing 36 charges for declaring that Millenia Hope’s securities would be listed on a stock exchange, making illegal distributions, and breaching an undertaking made to the AMF.
It has also filed 26 charges against Réginald Alfred Groome, a securities dealer rep at the time of the alleged offences, for illegally distributing securities, making misrepresentations to investors, and declaring that the securities would be listed on a stock exchange.
Claude-Yvon Provost is facing 24 charges for illegally distributing securities, acting illegally as a dealer, making misrepresentations to investors, declaring that the securities would be listed on a stock exchange, and breaching a decision of the Bureau de décision et de révision.
The AMF has also filed 12 charges against Mario Paquin for illegally distributing securities, acting illegally as a dealer, and making misrepresentations to investors. And, it says that Claude Valade, who is awaiting a penal trial for market manipulation in another case, faces five charges for illegally distributing securities and acting illegally as a dealer. The AMF has also brought three similar charges against Claude Bossé.
It says its investigation shows that investors were solicited through classified ads offering financial help to RRSPs holders, as part of a common RRSP fraud scheme.