AMF launches penal proceedings targeting market manipulation activities

Securities

Montréal - The Autorité des marchés financiers (the "AMF") has launched two penal proceedings against ten individuals allegedly involved in market manipulation activities that took place between 2007 and 2011 in violation of the Securities Act.

The publication of this press release also constitutes service, duly authorized by a Justice of the Peace for the district of Montréal, of Notice of Offence No. 4923-CT which includes two charges against Antonio Savaris.

The defendants allegedly took part in a scheme to manipulate the securities of micro-cap companies listed on U.S. over-the-counter markets, including the shares of HE - 5 Resources Inc., UMining Resources Inc. and Neuro-Biotech Corp.

The market manipulation scheme was based among other things on fraudulent issues of shares in these companies. Through purportedly unethical, abusive or fraudulent practices, the defendants influenced or attempted to influence the market price or value of securities of these companies.

The defendants

The ten defendants covered by the two penal proceedings are all charged with influencing or attempting to influence the market price or value of the securities of one or more of the three companies mentioned above through unethical, abusive or fraudulent practices.

Serge Ollu, a major player in the scheme, is facing three charges. An order to cease trading securities of Neuro-Biotech Corp. has been issued against Mr. Ollu. In 2013, he was also fined $303,000 after pleading guilty to offences relating to the illegal distribution of securities of Ressources minières Andréane.

Serge Ollu's wife, Denyse Raynault, was also fined $225,000 for offences relating to the illegal distribution of securities of Ressources minières Andréane in 2013 and is facing one charge in this matter. She was President of HE - 5 Resources Inc.

Marie-Christine Raynault-Ollu and Marc-Alexandre Raynault-Ollu are each charged with three counts.

Michel Demontigny, who was President of UMining, is facing three counts.

Yannick Lessard, who worked with Serge Ollu and Michel Demontigny, is charged with two counts.

Dominic Gingras, who also worked with Serge Ollu and Michel Demontigny, is charged with three counts.

Two charges have been laid against Antonio Savaris, a former insurance of persons representative.

Michael Raso Cortellazzi, who is the subject of other stock market manipulation proceedings brought in 2014, is charged with three counts this time.

Lastly, one charge has been laid against Daniel F. Ryan. <link file:25517>Freeze and cease trade orders were issued against Mr. Ryan in 2010 and he was recently charged in two other market manipulation penal proceedings (proceeding 1 et proceeding 2).

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

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