Cape Cove Financial Management
Cape Cove Financial Management (“Cape Cove”) was registered with the AMF under the Securities Act and was authorized to distribute financial products and services as:
- An exempt market dealer
- A mutual fund dealer
- A portfolio manager (including derivatives)
On July 8, 2021, the Superior Court allowed an AMF request for a receiver to be appointed to take charge of the activities of Cape Cove and the following issuers:
- Agro Tech Ventures 1 Inc.
- Malina Capital Inc.
Raymond Chabot Administrateur Provisoire inc. 
This link will open in a new window has been appointed as receiver for the companies. The receiver’s main mission is to get to the bottom of the irregularities that were found and to protect investors’ interests.
On October 15, 2021, the Superior Court allowed a second AMF request to also have Raymond Chabot appointed as receiver for other issuers, including:
- Silvermont Finance Inc.
- MarDi.info Income Trust
- Green River Investments Inc.
The AMF is the regulatory and oversight body for Québec’s financial sector. The AMF:
- Ensures consumer protection
- Analyzes whistleblower reports and allegations of offences submitted to it.
- Conducts Investigations and institutes proceedings to enforce the laws administered by it.
- Manages the financial services compensation fund.
The AMF’s concerns
The AMF, after noting inexplicable movements of funds between Cape Cove, these issuers and third parties, has concerns about the management of Cape Cove and the issuers.
Dany Bergeron, a representative at Cape Cove, was a director and officer of Agro Tech Ventures 1 Inc. and Malina Capital Inc. and was also involved in investment decisions at MarDi.info Income Trust.
Nick Tzaferis, who, until the appointment of the receiver, was vice-president and director of Cape Cove and an exempt market dealer representative acting on behalf of Cape Cove, was also a director and officer of Silvermont Finance Inc.
Furthermore, the AMF is alleging that Cape Cove and the issuers made misrepresentations by, in particular, not disclosing the presence and involvement of Efstratios Gavriil (alias Sean Gabriel) to their clients. Gavriil has prior convictions for financial fraud and illegal practice. Other elements are also concerning, such as the fact that certain issuers have not filed financial statements, notices of use of proceeds or an offering memorandum.
The AMF is continuing its investigation at the same time as the receiver is performing its work.
Transfer of activities
Cape Cove’s activities recently ceased:
- The accounts of portfolio management clients have been transferred by operation of a transaction authorized by the Superior Court to Rivemont Investments.
- The accounts of mutual fund clients have been transferred to Sentinel Financial Group in another transaction authorized by the Superior Court.
The accounts of exempt market clients have not been acquired by another dealer. The clients concerned are asked to contact either a representative registered as a dealing representative of an exempt market dealer or the receiver, who can give them guidance. Note that securities distributed in the exempt market are not accompanied by a prospectus. For more information, see our page on prospectus exemptions.
Contact the receiver
Clients who have any questions are asked to contact Emmanuel Phaneuf at:
Documents related to this file This link will open in a new window
Fonds d’indemnisation des services financiers
The Fonds d’indemnisation des services financiers (financial services compensation fund), which is administered by the AMF, compensates Québec consumers who are victims of fraud, fraudulent tactics or embezzlement committed or engaged in by certain intermediaries in the financial sector. A consumer may be compensated to a maximum of $200,000 per claim.
In its report dated April 15, 2022, Raymond Chabot stated that “the facts show that a large portion of funds were misappropriated in a ‘Ponzi scheme’” connected with the five issuers under receivership, namely:
- Agro Tech Ventures 1 Inc.
- Malina Capital Inc.
- Silvermont Finance Inc.
- MarDi.info Income Trust
- Green River Investments Inc.
On October 12, 2022, the AMF contacted investors who had purchased securities from at least one of the five issuers through a Cape Cove representative registered in Québec. These clients were encouraged to file a claim with the AMF by November 18, 2022.
The AMF concluded that 414 Quebec investors were entitled for indemnity from the Fonds d’indemnisation des services financiers, as it announced on July 10, 2024 This link will open in a new window (in French only). They have already received their decision confirming the admissibility of their claim.
News releases and decisions
News releases and decisions relating to Cape Cove
News releases and decisions relating to Efstratios Gavriil
| Dates | News releases and decisions (Efstratios Gavriil) |
|---|---|
| October 26, 2012 | Illegal practice and distributions – Alfonso Vincenti fined $74,000 |
| February 14, 2012 | Illegal Distributions - Efstratios Gavriil fined $90,000 |
| January 14, 2009 | Darcy International Financial Holding Inc. |
| March 13, 2006 | Proceedings instituted against Efstratios Gavriil, Ionian Financial Group Inc., Gestion de placements ISL inc. and six other co-defendants |
Decision relating to Nick Tzaferis
| Dates | Decision (Nick Tzaferis) |
|---|---|
| February 10, 2022 | Décision du Tribunal administratif des marchés financiers (pdf - 261 KB)This link will open in a new windowUpdated on February 10, 2022 (in French) |
News releases and decisions relating to Claude Dufour and Services Financiers C. Dufour Inc.
| Dates | News releases and decisions (Claude Dufour and Services Financiers C. Dufour Inc.) |
|---|---|
| July 24, 2023 | Dossier Cape Cove - Pénalité et ordonnances à l'encontre de Claude Dufour This link will open in a new window (in French) |
| July 14, 2023 | Décision du Tribunal administratif des marchés financiers (pdf - 594 KB)This link will open in a new windowUpdated on July 14, 2023 (in French) |
| January 25, 2023 | Décision du Tribunal administratif des marchés financiers (pdf - 291 KB)This link will open in a new windowUpdated on January 25, 2023 (in French) |
News releases and decisions relating to Robert Audet
| Dates | News releases and decisions (Robert Audet) |
|---|---|
| March 16, 2023 | Dossier Cape Cove – Pénalité et ordonnances à l’encontre de Robert Audet This link will open in a new window (in French) |
| February 24, 2023 | Décision du Tribunal administratif des marchés financiers (pdf - 4 MB)This link will open in a new windowUpdated on February 24, 2023 (in French) |
News releases and decisions relating to Dany Bergeron and 9278-7381 Québec inc.
| Dates | News releases and decisions (Dany Bergeron) |
|---|---|
April 17, 2023 | Dossier Cape Cove – Ordonnances provisoires à l’encontre de Dany Bergeron et de 9278-7381 Québec inc. This link will open in a new window (in French) |
March 27, 2023 |
News releases and decisions relating to Jean-Christophe Daigneault
| Dates | News releases and decisions (Jean-Christophe Daigneault) |
|---|---|
May 5, 2023 | |
| April 25, 2023 | Décision du Tribunal administratif des marchés financiers (pdf - 10 MB)This link will open in a new windowDécision du Tribunal administratif des marchés financiers - Jean-Christophe Daigneault (in French) |