The Autorité des marchés financiers reports that the Bureau de décision et de révision en valeurs mobilières has suspended the registration of a securities advisor and frozen the assets of an investment fund.

The AMF reports in a news release that it requested the BDRVM suspend the registration of Les conseillers en valeurs Planiges inc. as an unrestricted securities advisor, and freeze the assets of the Zenith Stable Value Growth Fund.

The Quebec-based regulator says that Denis Patry, president of Conseillers Planiges and Zenith Management and Research Corp. has confirmed a number of issues raised by the AMF as a result of its investigation and has voluntarily stated that as an advisor, he misappropriated $400,000 in connection with a private distribution that he himself solicited; as an advisor, he misappropriated approximately $3 million belonging to clients; and, he sent client account statements containing misrepresentations.

Also at the request of the AMF, the BDRVM issued a freeze order on funds, securities or other assets against Zenith Stable Value Growth Fund, as well as against Zenith Management and Research, Conseillers Planiges, Patry and State Street Trust Company Canada. It also ordered the Zenith Fund to cease trading.

Back in June, the BDRVM issued a freeze order requiring that the Zenith Fund, its manager, Patry and Conseillers Planiges not to withdraw funds belonging to the fund for the purpose of paying financial research expenses or professional fees. The investigation is continuing.