Cape Cove – Superior Court dismisses contestations of receivership orders

Decisions and Freeze and cease trade orders Securities

Montréal – On January 7, 2022, the Superior Court of Québec, presided over by the Honourable Justice Christian Immer, handed down three separate but related judgments dismissing the contestations of the entities covered by the orders for the appointment of a receiver This link will open in a new window issued at the request of the Autorité des marchés financiers (the “AMF”) on October 15, 2021, namely: Silvermont Finance Inc. and Silvermont Capital Inc.; Green River Investments Inc., Green River Finance Canada Inc. and 9129-6004 Québec inc. (operating as Green River Financing); and Income Trust, Operating Trust, Exempt Market L.P, General Partner Inc. and 9428-5855 Québec inc.

It should be recalled that, on July 8, 2021, the Superior Court of Québec, in a related matter, had allowed an AMF request for a receiver to be appointed to take charge of the activities of the registered firm Cape Cove Financial Management Inc. (“Cape Cove”) and the companies Agro Tech Ventures 1 Inc., Malina Capital I00 Inc., Green CBD Technology Inc., Malina Energy Holdings, Dojo Kaishi Inc.and Calixa Capital Partners Inc. (“Calixa”).

In his January 7, 2022  judgments, Justice Immer pointed to concerns about the way the entities involved were managed and the inexplicable movements of funds between the companies under the receivership order issued on July 8, 2021 and the defendants subject to the receivership order issued on October 15, 2021, their officers or related companies.

The undisclosed presence and involvement of Efstratios Gavriil (also known as Strato Gavriil and Sean Gabriel) (“Gavriil”), who has a criminal record of financial fraud and misappropriation of funds in the various groups of entities, was also a determining factor for the Court. In addition to the undisclosed presence and involvement of Gavriil, other concerning factors, such as the fact that certain companies had not filed financial statements, notices of use of proceeds or an offering memorandum, also formed grounds for dismissing the contestations and maintaining receivership of the entities involved.

The AMF’s investigation in the matter of Cape Cove is ongoing.

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

Additional news