The Autorité des marchés financiers, Quebec’s super-regulator reports that it is initiating penal proceedings against Claude Vézeau, a director of ConjuChem Inc., on allegations of insider trading.

The AMF says that on August 21, 2003, through 9099-3569 Québec Inc., Vézeau allegedly traded shares of ConjuChem Inc. The regulator says Vézeau held privileged information regarding this issuer and thus contravened the Québec Securities Act. That same day, ConjuChem announced positive results regarding clinical studies for a product to treat diabetes.

The AMF is pursuing the case before the Court of Québec (Criminal and Penal Division) in Laval. If found guilty, the minimum fine is twice the illegally-earned profit, but not less than $5,000.In this case that would amount to $9,630. Nonetheless, the AMF is asking that a fine of $20,000 be imposed.