March 14, 2016 Securities

Montréal - The Autorité des marchés financiers ("AMF") has filed a penal proceeding in the district of Drummondville against Michel Desroches, Fernando Charest, Serge Talon as well as the management firms 9279-7745 Québec inc. and 9219-8050 Québec inc. A total of 204 charges related to illegal distribution activities were filed.

Michel Desroches faces 96 charges, namely, 50 charges for aiding with a distribution without a prospectus, 42 charges for illegal practice as a securities dealer, three charges for misrepresentation and one charge for conspiring to influence or attempt to influence the market price or the value of securities.

Fernando Charest faces 58 charges, namely, 28 charges for aiding with a distribution without a prospectus, 27 charges for illegal practice as a securities dealer, two charges for misrepresentation and one charge for conspiring to influence or attempt to influence the market price or the value of securities.

As for Serge Talon and the firms 9279-7745 Québec inc. and 9219-8050 Québec inc., they face 26, 15 and nine charges respectively for aiding with a distribution without a prospectus.

If they are found guilty on all charges, the respondents are liable to minimum fines of $354,000 (Michel Desroches), $209,000 (Fernando Charest), $130,000 (Serge Talon), $75,000 (9279-7745 Québec inc.) and $45,000 (9219-8050 Québec inc.).

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

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