Montréal - On March 18, 2016, Judge Marco LaBrie, of the Court of Québec, district of Longueuil, allowed a joint proposal made by the parties and ordered Richard Longpré to pay a fine totalling $724,000 and serve a prison term of 24 months less a day for offences related to illegal distributions.
"We are satisfied with the penalty imposed in this matter. It highlights once again that illegal distributions are offences that must be harshly sanctioned," said Louis Morisset, President and CEO of the < lang="fr">Autorité des marchés financiers ("AMF"). "These offences can have a devastating impact on victims, who are seldom able to recover the funds that they invested with confidence."
The AMF investigation revealed that the offences committed by Richard Longpré, a former representative in insurance of persons, group insurance of persons and mutual funds, caused losses of almost $1.3 million to 34 investors between 1998 and 2009. Richard Longpré pleaded guilty to the 133 charges brought against him by the AMF for pursuing illegal activities as a securities dealer, carrying out illegal distributions and making misrepresentations to investors by stating that the proposed transaction was very safe and did not pose any risk.
Based on the trust established with clients, Richard Longpré proposed that some clients lend him money for investment purposes on their behalf, while suggesting that he had access privileges to acquire shares in oil companies. He promised annual returns of up to 8% and issued terms notes in the name of the lenders.
The AMF wishes to emphasize the importance of being prudent: Before entrusting funds to anyone, check whether the person is authorized to solicit investments. Moreover, if the person is pushing you to make a quick investment decision or is promising unusually high returns, you should be concerned about the risks of the transaction. For the steps to follow to help you determine possible fraud, see your personal anti-fraud guide on the AMF website.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
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