Gestion Guychar (Canada) Inc.AMF files 459 charges, seeks jail terms and fine of $8,315,000

Securities

Montréal – The Autorité des marchés financiers (AMF) has launched penal proceedings in the Court of Québec (Criminal and Penal Division), district of Montréal, against Richard Lanthier, Guy Charron, Huguette Gauthier and Gérald Turp.

The suit consists of 244 charges against Richard Lanthier (including 89 with prison terms and fines totalling $3,760,000), 202 charges against Guy Charron (including 153 with prison terms and fines totalling $4,370,000), 12 charges against Huguette Gauthier (including one with a prison term and fines totalling $160,000) and one charge against Gérald Turp (with a prison term and a fine totalling $25,000).

The AMF alleges that the defendants violated the Securities Act (the "Act") by:

  • pursuing activities as a securities dealer without being registered with the regulatory authority, thereby violating section 148 of the Act;
  • aiding, by act or omission, with the distribution of a form of investment governed by the Act, primarily instruments evidencing a cash loan, without a prospectus approved by the regulatory authority, thereby violating section 11, with reference to section 208 of the Act;
  • distributing a form of investment governed by the Act, without a prospectus approved by the regulatory authority, thereby violating section 11 of the Act.

In light of the seriousness of the violations, the number of victims involved and the prejudice they have incurred, the AMF believes a heavy sentence should be imposed on each of the accused. A heavy sentence is also being sought for exemplary and deterrence purposes.

With respect to the charges related to the pursuit of activities as a dealer without being registered as such, the AMF is seeking fines that are five times larger than the minimum prescribed by law, namely, $5,000 per charge. With respect to charges related to aiding with a distribution or a distribution without a prospectus, the AMF is seeking fines that are five times larger than the minimum prescribed by law, namely, $25,000 per charge. For each of the 244 charges with prison terms, the AMF is seeking terms of up to 5 years less a day.

On February 27 and April 16, 2007, the Bureau de décision et de révision en valeurs mobilières (BDRVM) issued freeze and cease trade orders as well as an order to cease any activity as a securities adviser against Richard Lanthier, Guy Charron, Huguette Gauthier, Gérald Turp and Turp DTD Consultants inc.

On July 11, 2008, and after several days of hearings, Gérald Turp and Turp DTD Consultants inc. withdrew their motion for a lifting of the freeze order issued by the BDRVM.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.

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