The Quebec Securities Commission has started proceedings against Jean Tremblay helping companies distribute their shares without a prospectus.

Tremblay is facing 200 counts of having violated the province’s Securities Act. If convicted, Tremblay will be fined a minimum of $1 million — $5,000 for each count.

QSC investigators conducted a search of the offices of CFM Consultant Financement Multiple Inc. and Financière Telco Inc. on Aug. 17, 2000. On Sept. 14, 2000, the QSC imposed a cease trade order against CFM, Telco, various companies, their senior executives, their employees and representatives or agents.

In its decision, the QSC prohibited the parties involved, including Tremblay, from carrying out any activities involving the distribution of securities and from acting as a securities dealer or as a representative of a securities dealer. Furthermore, the QSC prohibited Telco, its senior executives, employees, representatives or agents from granting any loans to CFM clients.

In this case, CFM offered financial assistance to holders of RRSPs and similar types of registered plans through newspaper ads.