Five former employees of Mount Real Corp., including the CEO, are facing almost 700 charges under the Quebec Securities Act, the Autorité des marchés financiers revealed Monday.
A total of 682 charges are being laid against the five individuals, carrying a total of $551.5 million in fines and jail time of five years less one day for four of the five accused.
The charges are connected to the loss of $130 million by roughly 1,600 small investors who held notes issued by affiliates of Mount Real. The company, now bankrupt, was primarily involved in sales of magazine subscriptions.
Lino P. Matteo, the former CEO, faces jail time and 308 charges with fines up to $204 million.
Paul D’Andrea, the company’s former chief financial officer, has already pleaded guilty to 131 charges. He faces 135 charges with fines totaling $137.5 million.
In exchange for his co-operation in the case, the AMF has agreed not to seek jail time for D’Andrea.
Former president Joseph Pettinicchio is facing 70 charges with fines up to $63.5 million, and jail time.
Laurence Henry, former vice president of corporate development and a Mount Real director, faces 103 charges with fines totalling $89.5 million and jail time.
Former director and corporate secretary Andris Spura faces 66 charges with fines amounting to $57 million and jail time.
These latest charges follow a round of 619 charges laid by the AMF in January 2007, against a separate group of 24 individuals involved with Mount Real and its affiliates. So far, five of the 24 have been convicted on 143 counts with fines of $802,000.
AMF charges former Mount Real officials
A total of 682 charges are being laid against five individuals, carrying a total of $551.5 million in fines
- By: Megan Harman
- September 22, 2008 September 22, 2008
- 15:20