October 19, 2004 Securities

Montréal – The Agence nationale d’encadrement du secteur financier (also known as the “Autorité des marchés financiers” or the “AMF”) is launching penal proceedings against Gilbert Chartrand and Georges Benoît before the Court of Québec (Criminal and Penal Division) in the judicial district of Montréal.

Mr. Chartrand is accused of the following:

• acting as a securities adviser within the meaning of section 5 of the Securities Act (the “Act”), without being registered as such with the AMF, by managing, under a mandate, a securities portfolio on behalf of the Fédération des cégeps in violation of section 148 of the Act, thereby committing an offence under section 202 of the Act.
• making a misrepresentation in respect of a transaction in a security by failing to mention to the Fédération des cégeps that foreign investments did not correspond to the organization’s risk factors, thereby committing an offence under subsection 197(1) of the Act.

If found guilty, Mr. Chartrand is liable to a minimum fine of $126,000, plus costs.

Mr. Benoît is accused of the following:

• assisting Mr. Chartrand in acting as a securities adviser within the meaning of section 5 of the Act with respect to the Fédération des cégeps, without being registered as such with the AMF, in violation of section 148 of the Act, thereby committing an offence under section 202 of the Act with reference to section 208 thereof.
• making a misrepresentation in respect of a transaction in a security by failing to mention to the Fédération des cégeps that foreign investments did not correspond to the organization’s risk factors, thereby committing an offence under subsection 197(1) of the Act.

If found guilty, Mr. Benoît is liable to a minimum fine of $76,000, plus costs.

Established on February 1, 2004, the Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector. The AMF consists of the Commission des valeurs mobilières du Québec, the Bureau des services financiers, the Régie de l’assurance-dépôts du Québec, the Fonds d’indemnisation des services financiers and the Inspector General of Financial Institutions.

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