The Autorité des marchés financiers (AMF) announced that it has launched a penal proceeding in the Court of Québec against concerning an alleged illegal distribution.

The AMF announced that it has filed 46 charges against Rocco Di Stefano for alleged violations of the Securities Act, including 23 counts of distributing promissory notes, without a prospectus approved by the AMF; and 23 counts of acting as an adviser without being registered with the AMF.

It also claims that he has continued to make distributions without holding the necessary registration; that one investor has been unable to recover his money; and, that the amounts invested represent several millions of dollars.

None of the allegations have been proven in court.

The regulator adds that it is seeking triple the minimum fines available for such charges, total fines of $414,000, “for exemplary reasons and due to the significant losses incurred by investors” in the case.

On November 30, 2007, the Bureau de décision et de révision en valeurs mobilières ordered Di Stefano to cease trading and acting as an adviser, the AMF reports.