RSM Richter Inc., the trustee to the bankruptcy estate of failed mutual fund firm Norbourg Group, reports that it has reached an agreement with Michel Fragasso and Investissement Fragasso Inc.

The firm, RSM Richter, confirms that its investigation on the Norbourg Group has not revealed any evidence that Fragasso was “involved in the financial embezzlement or fraud”.

The use of the words “illegally and in fraud of the rights of the creditors” in the proceedings filed by RSM Richter is standard, the firm said, adding that it does not necessarily imply the existence of a fraud in its usual or criminal meaning.

Also, RSM Richter says it has never attempted to allege in its proceedings that Fragasso would have failed to comply with the rules pertaining to the financing of political parties during the election campaign where he was a candidate, within the 18 months period when he was an employee of the Norbourg Group, following the sale of the company where he was previously employed.

As trustee to the bankruptcy estates of the Norbourg Group, RSM Richter did not have the mandate nor was it otherwise its duty to enquire about the compliance to these rules by Fragasso and it did not conduct any investigation in this regard, it said.