Montréal, May 9, 2011 - The Autorité des marchés financiers (the "AMF") has announced that 28 investors defrauded in the matter of Carole Morinville will receive $1,600,000 in compensation.
The AMF conducted a thorough assessment of the 42 claims received between August 2010 and January 2011. As a result of this assessment and in accordance with the operating rules of the Fonds d'indemnisation des services financiers (the "Compensation Fund"), 28 of the 42 investors will receive compensation. The evidence showed overwhelmingly that Carole Morinville used an investment scam and her relationship of trust with these 28 investors to elicit funds. The evidence also showed that Carole Morinville cashed the amounts entrusted to her by these 28 claimants and seemingly never invested any of the funds.
These 28 investors, or 65% of the claimants, will thus be compensated for their investment loss through the Compensation Fund. Under fund rules, the maximum amount of compensation payable is $200,000 per claim.
The AMF will take the necessary steps to recover from Carole Morinville the amounts reimbursed to the victims.
The Compensation Fund may compensate victims of fraud, fraudulent tactics (dishonest practices) and embezzlement who conduct business with individuals and companies authorized to operate under An Act respecting the distribution of financial products and services, or in connection with mutual funds or scholarship plans. The AMF assesses claims, renders a decision on their eligibility to receive an indemnity through the fund and determines the amount of the indemnity to be paid to the victim. The fund is financed through compulsory annual contributions paid by firms and representatives registered with the AMF.
The Autorité des marchés financiers ("AMF") is the regulatory and oversight body for Québec's financial industry.
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