Securities regulators in Quebec have charged a man with unregistered derivatives dealing and illegal distributions.
The Autorité des marchés financiers announced that it has launched a penal proceeding against Sylvain Laroche (1961-08-06)1 for illegal distributions and illegally practicing as a securities dealer and derivatives advisor.
Laroche, who the AMF stresses should not be confused with a financial planner and mutual fund rep of the same name, is facing 11 charges and the regulator is seeking $432,000 in fines from him. The allegations have not been proven.
The regulator claims that Laroche convinced two investors to make investments with him in the form of loans. It says that his trades in crude oil derivatives on the New York Mercantile Exchange caused the investors to lose almost all their initial investments, representing just over $228,600. The AMF reports that one of the investors even withdrew all his investments from a major insurance company and mortgaged his home to give Laroche a larger amount to invest. Laroche was not registered with the AMF to act as a securities dealer and derivatives advisor, it says.
1 The AMF notes that the accused Sylvain Laroche should not be confused with the financial planner and dealing representative (mutual fund dealer) Sylvain Laroche whose registration number is 144 577.