Two Quebec companies which were recently the subject of an order issued by the New Brunswick Securities Commission (NBSC) are now in bankruptcy.

Groupe Financier CTIC, CITCAP Groupe Financier Inc., and their principal, Patrick Gauthier, raised more than $5.7 million from New Brunswick investors between 2006 and 2008.

The investors were primarily from Edmundston and Grand Falls, and to a lesser extent, from the Acadian Peninsula, Moncton, Saint John and Fredericton.

An NBSC investigation conducted in early 2009 revealed that neither CTIC nor CITCAP had complied with New Brunswick securities laws in selling its investments.

As a result, in April, the NBSC issued a consent order limiting CTIC and CITCAP’s activities in New Brunswick. The NBSC’s order was followed shortly by an additional order from Quebec’s securities regulator, l’Autorité des Marchés Financiers, which declared that the Quebec assets and bank accounts of CTIC and CITCAP be frozen.

On 22 June 2009, CTIC and CITCAP sought bankruptcy protection and, as a result, the assets of these companies are now under the control of a bankruptcy trustee in Quebec. The assets will be administered and distributed in accordance with the Bankruptcy and Insolvency Act.

“New Brunswickers who invested in either CTIC or CITCAP are urged to seek professional advice from a lawyer or accountant with respect to their rights under the bankruptcy,” the NBSC said in a release.

IE