July 30, 2009 Decisions and Freeze and cease trade orders Securities

Montréal – At the request of the Autorité des marchés financiers ("AMF"), the Bureau de décision et de révision en valeurs mobilières (BDRVM) issued an ex parte order on July 2, 2009 prohibiting René Sauriol from pursuing activities as a securities adviser and from carrying on any activity, directly or indirectly or by Internet, in respect of transactions in securities.

The BDRVM also issued a freeze order on the funds, securities or other assets held on deposit in the accounts of René Sauriol and an order to shut down a website used by René Sauriol for offering services as a financial planner even though he no longer holds a certificate in this sector.

In its decision, the BDRVM stated that it was particularly concerned about the following allegations and facts as presented by the AMF:

• The distributions made from 2005 to 2008 to ten or so investors, which amounted to slightly more than $500,000, were conducted even though René Sauriol was not registered as a securities dealer or a securities representative and no prospectus was submitted to the AMF for a receipt;
• The possibility of a Ponzi scheme; René Sauriol is alleged to have used the funds of new investors to pay interest to current investors;
• Mr. Sauriol seems to have betrayed the confidence of investors; the distributions were made to longstanding clients as part of his activities as a representative;
• Mr. Sauriol seems to have created a fictitious product by using the name, logo and telephone number of a foreign insurer for the purpose of lending credibility to the product.

In its request, the AMF highlighted the importance of protecting investors and the public interest. The AMF also stressed that it was imperative that the BDRVM issue this decision since the AMF believes that the funds held in the accounts could be transferred or wasted.

The AMF reminds investors that they should always check with the AMF Information Centre to determine whether the firms and individuals offering to act as intermediaries have the necessary approvals from the AMF. Various AMF leaflets and brochures are also available to help consumers make better investment choices. Contact the AMF Information Centre or consult the AMF website, under Publications/Brochures and leaflets for consumers.

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

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