April 11, 2014 Insurance Decisions and Freeze and cease trade orders

Montréal - On April 8, 2014, at the request of the Autorité des marchés financiers (the "AMF"), the Bureau de décision et de révision ("Bureau") rendered freeze and prohibition orders against a resident of Joliette, Yvon Perreault, who until recently was a fraternal counselor for the Knights of Columbus Fraternal Insurance. The purpose of the orders is to cause him to cease making illegal distributions and to protect investors.

Several pieces of evidence were of concern to the Bureau and were the reasons for its decision. The Bureau mentioned the following factors, among others:

• Yvon Perreault distributed financial instruments evidencing a loan and/or an investment contract without a prospectus for which a receipt has been issued and without being registered as a dealer or adviser with the AMF;
• In pursuing his illegal activities, Yvon Perreault did not give investors any documentation or proof of the existence of the securities he was selling them;
• The respondent used his title as fraternal counselor of the Knights of Columbus to attract members and even used that organization's letterhead to prepare and give investment receipts investors;
• Yvon Perreault used his status as an insurance representative for the Knights of Columbus to approach his clients and propose various investments involving in particular debt securities, beginning in 2000;
• Yvon Perreault enticed investors by promising annual returns of 10 to 25% and claimed to invest funds in various affairs that were merely schemes;
• To encourage investors to make cash payments in small denominations, Yvon Perreault told them that their investment would be "under the table" and that the return would not have to be reported to the tax authorities;
• Yvon Perreault has been unable for some time to pay the return promised to several investors, despite formal demands from them.

The Bureau also mentioned that, according to the evidence submitted, Yvon Perreault was in a precarious financial situation and might be involved in a scam similar to a Ponzi scheme.

The Bureau therefore prohibited Yvon Perreault from trading in securities and engaging in the business of securities adviser. It also rendered orders prohibiting him from disposing of the funds, securities or other assets in his possession, including any in his bank account.

If you believe you have been harmed by Mr. Perreault's actions, we encourage you to contact our Information Centre.

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

-30-

Information:

Media only:
Sylvain Théberge: 514-940-2176

Information Centre:
Québec City: 418-525-0337
Montréal: 514-395-0337
Toll-free: 1-877-525-0337
www.lautorite.qc.ca
Twitter : @lautorite This link will open in a new window