The Quebec Securities Commission reports that it has approved an agreement with Michel Chevrier and Alexandre Cigna concerning the illicit distribution of OPTEC Fund securities to investors.

Chevrier agreed to an administrative penalty of $20,000, which he is required to pay within two years. He admitted to having distributed securities of OPTEC Fund to an investor for a total of approximately $30,000 between September 1, 1997 and June 30, 1998.

In addition to this trade, Chevrier helped OPTEC Fund illicitly distribute its securities. More specifically, he recruited nine registered representatives, including Alexandre Cigna, who sold securities of OPTEC Fund to investors and provided them with information as well as the documents required to invest in such securities during the above-mentioned period.

Cigna agreed to pay a $5,000 fine within one year. He has acknowledged having distributed securities of OPTEC Fund to five investors for a total amount of approximately US$130,000 and US$480,000. These trades were made between October 24, 1997 and February 12, 1998.

The commission also reprimanded Chevrier and Cigna. It says that they committed these offences of their own volition while they were working for a group savings plan broker, then registered with the QSCQ.

On July 7, 1999, the QSC had prohibited OPTEC Fund from carrying on any activity to distribute its securities and act as a dealer. This cease trade order was issued after it was shown that, between September 1, 1997 and June 30, 1998, OPTEC Fund had distributed its securities in Quebec without a prospectus approved by the commission. In all, 10 people were involved in this file. Only the case of Jean-Eudes Arsenault, who allegedly sold units of OPTEC Fund to 17 people, is still pending. Arsenault must appear before the QSC on September 22.