The Autorité des marchés financiers reports that investor advocate, Yves Michaud, supports the AMF’s efforts to recover money for investors involved in the Norbourg case.

The AMF says that the board of directors of the Mouvement d’éducation et de défense des actionnaires (MÉDAC), which defends the interests of savers and investors in Québec, adopted a resolution that supports the AMF’s court action, and recommends that the parties responsible for the class action co-operate with AMF lawyers, “for the purpose of developing a common approach based first and foremost on the interests of defrauded investors”.

The regulator notes that in addition to the charges it has filed against Norbourg founder, Vincent Lacroix, “the AMF launched a recourse on behalf of investors whereby it is claiming $115 million from Vincent Lacroix, maintaining that he is liable for the losses incurred by investors. This claim represents the portion that he apparently misappropriated for his benefit and that of his relatives and his companies. As well, with this extraordinary recourse, the AMF is claiming amounts from a number of legal persons associated with this affair.” None of the allegations against Lacroix or Norbourg have been proven.

The AMF says that it is taking the lead in defending investors’ interests in this case. “Based on all the investigative work that has been performed, the AMF believes that it is by far the party with the fullest understanding of the matter at hand and the most extensive body of evidence,” it says, adding that it is making its resources, expertise and the information gathered during the investigation available for the benefit of investors. “This places the AMF at the forefront of defending the interests of investors before the courts.”

“Moreover, unlike the class action in which lawyers will earn fees based on a percentage ranging from 20% to 30% of the amount awarded, all funds recovered will be paid to investors,” it adds.

The AMF also reports that in addition to MÉDAC’s support, it has received some 100 letters of support over the past few weeks.