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 cease trade order on September 9, 2008 against Louis-Robert Lemire on the securities of Gale Force Petroleum Inc., of which he is an insider within the meaning of section 89 of the Securities Act (the "Act").
The AMF believes it is in the public interest to take this action to ensure the protection of investors and the integrity of the market.
In its decision, the BDRVM highlighted the objective seriousness of the alleged offences, the failure to disclose transactions and the combination of troubling circumstances presented at the hearing, in particular:
- Louis-Robert Lemire is a director and insider of Gale Force Inc. as well as a member of its oversight committee;
- Since September 2006, Mr. Lemire has bought and sold Gale Force Petroleum shares as part of nearly 90 transactions;
- Each transaction was carried out on the day preceding the publication of a news release by Gale Force Petroleum, or on the very day itself;
- The respondent has not reported transactions conducted on his behalf in Gale Force Petroleum shares since September 2006, thereby violating regulatory requirements;
- As a result of trading in Gale Force Petroleum shares, the respondent generated a profit of $11,000 and sustained a loss of only $100.
This BDRVM decision is the first cease trade order issued during an investigation where the AMF has reasonable grounds to believe that privileged information was used and market manipulation took place.
Insider trading and market manipulation can incur harsh penal sanctions under securities legislation, namely, a prison term of up to five years less a day.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec’s financial sector.
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Christian Barrette: (514) 940-2176
Québec City: 418-525-0337