Decisions and Freeze and cease trade orders Securities
Montréal – At the request of the Agence nationale d'encadrement du secteur financier (also known as the Autorité des marchés financiers or AMF), the Bureau de décision et de révision en valeurs mobilières (BDRVM) has ordered Léonidas Valkanas, Demetra Kostaredes and 9104-4859 Québec Inc. (Financement New Millenium) to cease any activity in respect of a transaction in securities of Milestone Financial Ltd. This order covers Milestone Financial Ltd., its directors, officers, employees and representatives, unless the activity is carried out in accordance with the Quebec Securities Act (the "Act").
The order, handed down on February 13, 2004, follows an investigation conducted by the Commission des valeurs mobilières du Québec (now part of the AMF). The results of the ongoing investigation have so far revealed that:
- Léonidas Valkanas, Demetra Kostaredes and 9104-4859 Québec Inc. distributed securities without being registered as required by section 148 of the Act;
- the two offenders solicited certain persons, advising them to redeem the units they held in mutual funds. The sums of money obtained were then transferred into the bank account of 9104-4859 Québec Inc., which carries on business under the name Financement New Millenium. The amounts transferred were subsequently used to purchase securities of Milestone Financial Ltd., incorporated and residing in the Turks and Caicos Islands, in the British West Indies;
- Milestone Financial Ltd., unknown in Québec and Canada, made a public offering without having a prospectus duly authorized by the AMF, as required by section 11 of the Act.
If the above-mentioned persons wish to exercise their right to be heard under the Act, the BDRVM will hold a hearing at a date to be agreed upon by the parties.
To read the BDRVM's decision, as well as the request presented to it by the AMF (both available in French only), please consult the appendix to the press release posted on the AMF's website at www.lautorite.qc.ca This link will open in a new window, under Media Centre/The Autorité's Latest Press Releases.
Established on February 1, 2004, the Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector. The AMF merges the Commission des valeurs mobilières du Québec, the Bureau des services financiers, the Régie de l'assurance-dépôts du Québec, the Fonds d'indemnisation des services financiers and the Inspector General of Financial Institutions
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