Decisions and Freeze and cease trade orders
Montréal - On April 3, 2014, at the request of the Autorité des marchés financiers (the "AMF"), the Bureau de décision et de révision (the "Bureau") rendered freeze and prohibition orders against two residents in the Sherbrooke area, Kader Hanahem and his spouse Sophie Jean, as well as against 9073-1266 Québec Inc. (also known as Groupe Financier Orizon) to prevent them from distributing securities and to protect investors.
According to the Bureau, the evidence submitted by the AMF at the hearing was particularly aggravating against Kader Hanahem. Mr. Hanahem is a former mutual fund dealer who gave an undertaking (in French only) to the AMF not to distribute securities and was struck off the roll for 6 years This link will open in a new window (in French only) by the Chambre de la sécurité financière for illegally selling shares. He is also the subject of penal proceedings (in French only) for acting illegally as a securities adviser.
Kader Hanahem's approach to investors was particularly insidious. He would ask them to transfer their investments to a direct trading account and provide him with the access codes so he could place trades himself.
The Bureau noted serious concerns regarding the evidence submitted by the AMF that compelled it to act immediately:
- Kader Hanahem and Groupe Financier Orizon are continuing to act as a dealer or adviser without being registered despite a formal undertaking given to the AMF;
- Kader Hanahem is the subject of penal proceedings for acting illegally as a securities adviser;
- Kader Hanahem seems to intend to pursue this type of activity since he asked an investor to pay him management and advisory fees for 2014 in advance;
- Kader Hanahem and Sophie Jean are using funds obtained illegally from investors for personal purposes, including mortgage payments on their family residence.
The Bureau therefore prohibited Kader Hanahem, Sophie Jean and Groupe Financier Orizon from trading in securities and engaging in the business of securities adviser. It also rendered orders prohibiting them from disposing of the funds, securities or other assets in their possession, including any held in their bank accounts and their family residence.
The Bureau is concerned that, without these orders, the respondents will continue to solicit other investors and use the funds received from them for their own purposes.
If you believe you have been targeted by Mr. Hanahem's actions, we encourage you to contact an agent at our Information Centre.
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The Autorité des marchés financiers (the AMF) is the regulatory and oversight body for Québec's financial sector.
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Sylvain Théberge: 514-940-2176