The Autorité des marchés financiers (AMF) has charged a man with carrying out illegal distributions, and says it’s seeking more than $1.7 million in sanctions.
The Quebec securities regulator announced last week that it has launched a penal proceeding in the judicial district of Rimouski against Alain André Desarzens, filed two charges for illegal activity as a dealer, and for distributions without a prospectus.
The AMF alleges that André Desarzens promoted numerous Internet-based investment programs through mass international emails, and it estimates that at least 2,500 investors from around the world invested $810,000 through these programs in 2010, losing their investments in the process. The allegations have not been proven.
In the case, the AMF is seeking a total fine of $1,720,000.
The regulator also issued a reminder to investors that they “should be cautious when using the Internet and social media for investment purposes. Although these platforms offer much information from persons or businesses that are generally legitimate and honest, they also attract fraudsters.”