Quebec’s Autorité des marchés financiers said that it is satisfied with the conviction of Vincent Lacroix, founder of a failed mutual fund firm, yesterday.

The Court of Québec (Criminal and Penal Division), district of Montréal, found Vincent Lacroix guilty of the 51 charges filed against him by the AMF on March 9, 2006. He faced 51 charges of violating the Securities Act by influencing or attempting to influence the market price or the value of securities by means of unfair, improper or fraudulent practices (27 counts); and by providing the AMF with documents containing misrepresentations (24 counts).

“We are satisfied with the guilty verdict against Vincent Lacroix,” stated AMF president and CEO Jean St-Gelais. “The next step will be to ask for an exemplary sentence against Vincent Lacroix during the sentencing submissions.”

St-Gelais stressed that economic crimes are serious and detrimental to investors and society at large. As such, penalties in line with the seriousness of the offence should be imposed, he said. According to St-Gelais, sanctions must deliver the maximum deterrent effect in order to send a clear message.

“Vincent Lacroix misappropriated the funds of thousands of investors. He is contemptuous of investors and institutions alike. Moreover, far from expressing any regret for his conduct, he publicly claims that he is being victimized. The message must be clear. It is unacceptable for defrauders to have an easy ride,” added St-Gelais.

St-Gelais also reiterated that the AMF’s priority is to return as much money as possible to defrauded investors and that numerous initiatives had been undertaken to do so. “We must never forget that 9,200 people have lost nearly $130 million. It’s for them that we must pursue our efforts,” he declared.

Finally, St-Gelais pointed out that the decision was a penal decision and that the AMF had been very careful in filing penal charges under the Securities Act so as not to hinder any criminal proceedings that might be launched by the RCMP’s Integrated Market Enforcement Team.