Quebec’s Autorité des marchés financiers has launched penal proceedings seeking almost $3.3 million in fines against a company and several individuals that it accuses of illegal distributions.

The AMF said Tuesday that its investigation shows that 167 investors invested just over $4 million in Véhicules Nemo inc., which it cease traded earlier this year. None of the allegations have been proven.

The AMF said that the company faces 109 charges, and that it is seeking $1,104,000 in fines against it, concerning allegations that the company made illegal distributions and illegally acted as a securities dealer on 53 occasions. Véhicules Nemo also faces three charges for contravening an undertaking entered into with the AMF.

The firm’s president, director, CEO and, subsequently, chief operating officer, also faces 104 charges, and the AMF is seeking $1,530,000 in fines against him.

The regulator claims that he helped the firm make illegal distributions and acted illegally as a securities dealer on 49 occasions. It also alleges that he informed certain investors that its securities would be listed on an exchange, and he faces two charges of contravening an undertaking entered into with the AMF.

Two other individuals associated with the company also face similar charges.

IE