The Autorité des marchés financiers (AMF) has launched a legal proceeding against five individuals alleging unregistered trading and illegal distributions.
The AMF says that it has filed a total of 101 charges against the individuals involved, and that it is seeking fines totaling $992,000. The charges stem from allegations of illegal practice as a dealer, distributions without a prospectus, aiding a distribution without a prospectus, and making misrepresentations. The allegations have not been proven.
The Quebec securities regulator reports that its investigation revealed that at least 21 investors purchased units or shares in the scheme, and that they lost approximately $664,000 as a result.
Some of these investors were even encouraged to invest their RRSPs or LIRAs, it notes, adding that investors should “be extra careful when encouraged to invest all or part of their RRSPs or LIRAs in a financial instrument”, and that any withdrawal from these accounts is taxable.