February 3, 2005 Securities

Montréal – The Autorité des marchés financiers (“AMF”) is launching a penal proceeding against Constant Vanier before the Court of Québec (Criminal and Penal Division), in the judicial district of Saint-François. Mr. Vanier faces sixteen counts for having violated the Securities Act of Québec (“Act”).

Mr. Vanier is accused of the following:

Acting as a securities adviser without being registered with the Commission des valeurs mobilières du Québec (Québec Securities Commission, now part of the AMF), in violation of section 148 of the Act. He faces eight counts in this regard and is liable to a minimum fine of $1,000 for each count.

Assisting Services financiers Constant Vanier inc. (“SFCV”) with the distribution of debt securities without a prospectus approved by the Commission, thereby violating section 11 of the Act. He faces eight counts in this regard and is liable to a minimum fine of $5,000 for each count.

If found guilty on all counts, Mr. Vanier could be ordered to pay a minimum fine of $48,000. However, the AMF will be seeking a fine in excess of the minimum amount provided for in the Act, namely a total fine of $62,400.

Mr. Vanier, who was the subject of an investigation conducted by the Bureau des services financiers (Financial Services Bureau, now part of the AMF), was permanently struck off the roll by the Disciplinary Committee of the Chambre de sécurité financière on January 30, 2003 as a result of a number of charges for which he pleaded guilty on December 5, 2002. Moreover, SFCV had declared bankruptcy on October 2, 2002, and its registration was cancelled on January 6, 2003.

The AMF is the regulatory and oversight body for Québec’s financial sector

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Information:

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Philippe Roy (514) 940-2176
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