Cease trade order against Gold-Quest International Corp.
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 a reciprocal order on November 4, 2008 against Gold-Quest International Corp., its officers, representatives and directors to cease any activity, directly, indirectly or via the Internet, in respect of a transaction in securities.
Gold-Quest has been the subject of several warnings and cease trade orders since March 2008 by the securities commissions in Manitoba, British Columbia, Alberta and Ontario. In May 2008, the U.S. Securities and Exchange Commission and the United States District Court (District of Nevada) also issued a freeze order on the funds of Gold-Quest and ordered it to cease any activity in respect of a transaction in securities.
In its decision, the BDRVM noted a number of facts in support of its cease trade order, including:
- Numerous investors in Québec were solicited;
- The obvious exaggeration of the return promised to investors (87.5%);
- The lack of an approved prospectus or of a prospectus exemption;
- The allegation made in a U.S. court of the use of a Ponzi scheme;
- One investor's account statement indicated revenue he had never received;
- Leverage on a 50:1 basis.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
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