The founder of the Norbourg Group of Companies placed his companies into bankruptcy yesterday. The action follows allegations by Quebec securities regulators that millions of dollars of investor assets are missing.

In a release, Norbourg said Norbourg Asset Management Inc., Norbourg Financial Group Inc., Evolution Funds Inc., Perfolio Asset Management Inc. and Norbourg International Inc. had made “an assignment of their assets today pursuant to the provisions of the Bankruptcy and Insolvency Act.”

It added that Norbourg’s founder, Vincent Lacroix, believes the bankruptcy filing “was necessary given the present
circumstances and was the appropriate means of protecting the interests of the investors and other creditors of the Norbourg Group and constitutes the appropriate forum for the realisation of the assets of the entities of the Norbourg Group.”

The Autorité des marchés financiers froze Norbourg’s assets in August after it announced that Norbourg and related companies were under investigation for allegedly defrauding more than 9,000 investors, most from Quebec. A later audit revealed a $130 million discrepancy.

The AMF also said they will launch a class-action lawsuit against Norbourg to try to recover money for investors, something that provincial market regulators almost never do. It had also recommended that Norbourg Asset Management be liquidated.

Lacroix has not been charged and has denied doing anything wrong. Yesterday’s release said Lacroix “will fully co-operate with the trustee”, RSM Richter Inc.