Illegal distributions in OutaouaisAMF sues René Sauriol and seeks $682,000 in fines and prison term
Montréal – The Autorité des marchés financiers (the "AMF") has launched penal proceedings against René Sauriol, who purported to be a securities dealer, before the Court of Québec, district of Hull.
René Sauriol, a former insurance representative, faces 93 charges: 31 charges for illegal practice as a securities dealer, 31 charges for distribution without a prospectus and 31 charges for misrepresentations.
The AMF investigation revealed that, between April 2005 and June 2008, René Sauriol convinced nine clients to invest in a dummy corporation that used the name and logo of a Swiss company. He is alleged to have promised returns of as much as 20% and urged investors to hand him cheques and bank drafts made out to his personal name. When investments matured, he apparently proposed that clients reinvest the principal and interest that he claimed to have received. In this manner, he misappropriated approximately $462,000 at the expense of these nine investors.
The AMF is seeking fines that are double the minimum amount prescribed under the Securities Act as well as a prison term. It took into account allegations that René Sauriol violated the position of trust he had established with clients as a former registered representative, misappropriated funds and acted with criminal intent with respect to the illegal distributions and misrepresentations.
In July 2009, the Bureau de décision et de révision en valeurs mobilières issued a cease trade order and a freeze order against René Sauriol.
The Autorité des marchés financiers (the "AMF") is the regulatory and oversight body for Québec's financial sector.
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