Quebec’s Bureau de décision et de révision en valeurs mobilières has issued further freeze orders against companies associated with Mount Real Corp. The orders were made at the request of the Autorité des marchés financiers.

On November 10, the BDRVM issued freeze and cease trading orders against the Mount Real and related companies (Gestion MRACS ltée, Real Vest Investments Ltd, and Real Assurance Acceptance Corporation) and a number of directors. It has now issued orders against several other firms (Corporation services de gestion Mount Real, Corporation de capital Mount Real, La corporation Mount Real Auto plus, Services Mount Real inc., La corporation de services de gestion financière Mount Real, Marché de capitaux Mount Real ltée, Mount Real Management LTD, Real Credit Corporation, Mount Real International LTD, Real Reader Inc., and My Comptroller Services Inc.)

The AMF reiterates that these are conservatory measures intended to protect investors. At the request of the AMF and further to the BDRVM’s recommendation, the Québec Finance Minister appointed Jean Robillard from the firm Raymond, Chabot, Grant, Thornton as the provisional administrator to administer the assets of Mount Real Corporation, Valeurs mobilières iForum and Services financiers iForum.

The regulator notes that it has serious reservations about the actual value of the securities guaranteed by Mount Real and its related companies in the amount of $65 million. In addition, 15 complaints have been filed to date with the AMF by investors who claim they have been unable to obtain interest on these notes or their principal.

However, no allegations have been brought in the case, and nothing has been proven. In June, the AMF announced that an investigation into the financial operations of Mount Real was under way.

“Furthermore, the AMF is seeking to establish the nature of the relationships between Mount Real Corporation and Norshield,” it says, noting that also last June, a receiver was appointed in the Norshield matter in co-operation with the Ontario Securities Commission. “The AMF is continuing with its investigation to identify the role played by each person connected to the many offences that have been uncovered and to determine whether any penal proceedings will be launched.”