Action for more than $1,750,000Action brought against Efstratios Gavriil, Ionian Financial Group Inc., Gestion de placements ISL inc. and six other co-defendants

Securities

Québec City – On March 2, 2006, the Autorité des marchés financiers (“AMF”) instituted a civil action in subrogation claiming $1,752,375.50 from Efstratios Gavriil, IONIAN Financial Group Inc., Gestion de placements ISL inc., 6004113 Canada Inc. and several officers and directors of those companies, pursuant to section 277 of the Act respecting the distribution of financial products and services.

Starting at the end of 2003, several claimants filed compensation claims with the AMF’s Fonds d’indemnisation des services financiers (financial services compensation fund) for losses incurred as a result of the fraudulent conduct of Mr. Gavriil and Gestion de placement ISL inc. (“ISL”), the group savings firm on behalf of which Mr. Gavriil was acting. An analysis of the evidence submitted in several files showed that amounts given to Gavriil and ISL for the purpose of acquiring mutual funds had been misappropriated. In accordance with its mission, the AMF allowed the compensation claims in 18 cases. A total of $1,752,375.50 was paid to the claimants on the basis of the losses they incurred.

The AMF considers the conduct and/or inaction of Mr. Gavriil and the other officers, representatives and corporate entities named in the action to have caused injury to the 18 compensated claimants. The AMF is therefore asking the Superior Court to find the nine co-defendants solidarily liable for the losses incurred by the victims.

The Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector.

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