Centre de traitement d'information de crédit (C.T.I.C.) inc. - AMF files 189 charges and seeks close to $2.8 million in fines

Securities

Montréal – The Autorité des marchés financiers (AMF) has filed penal proceedings against six individuals in connection with Centre de traitement d’information de crédit (C.T.I.C.) inc. and is seeking fines totalling $2,795,350.

Specifically, the AMF has filed 127 charges against Patrick Gauthier for illegally acting as a securities dealer on 16 occasions and, on 88 occasions, aiding Centre de traitement d’information de crédit (C.T.I.C.) inc., CITCAP Groupe financier inc. and Gestion financière Appalaches inc. with illegal distributions. The AMF also alleges that Patrick Gauthier made misrepresentations on two occasions and, on 21 occasions, assisted Centre de traitement d’information de crédit (C.T.I.C.) inc. in contravening an undertaking entered into with the AMF. The AMF is seeking fines totalling $2,212,350 with respect to Patrick Gauthier.

In connection with this matter, the AMF is also filing charges against five individuals for illegal practice as securities dealers and aiding with illegal distributions. Benoit Mercier faces 30 charges in respect of which the AMF is seeking $306,000 in fines. Réjean Lessard faces 16 charges for which fines of $145,000 are being sought. Réjean Deschênes faces eight charges in respect of which fines of $72,000 are being sought. André Traversy faces four charges for which fines of $36,000 are being sought. Pierre Émond faces four charges in respect of which the AMF is seeking $24,000 in fines.

The AMF investigation revealed that 61 investors invested a total of $2,491,750 with these six individuals. The majority of the investors are from Québec City; the remaining investors are from the Lower St. Lawrence, Montérégie and the Eastern Townships.

Since May 2009, Centre de traitement d’information de crédit (C.T.I.C.) inc., CITCAP Groupe financier inc., Financière CTIC inc., Gestion financière Appalaches inc., Patrick Gauthier, Réjean Lessard, Benoit Mercier and André Traversy had been under cease trade orders issued by the Bureau de décision et de révision (the “Bureau”). The Bureau also issued a freeze order with respect to the funds, securities or other assets on deposit in the accounts of Centre de traitement d’information de crédit (C.T.I.C.) inc., CITCAP Groupe financier inc. and Gestion financière Appalaches inc.

Decisions were also handed down by the New Brunswick Securities Commission in respect of the activities of Centre de traitement d’information de crédit (C.T.I.C.) inc.

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

— 30 —

Information:

Media only:
Sylvain Théberge: 514-940-2176

Information Centre:
Québec City: 418-525-0337
Montréal: 514-395-0337
Toll-free: 1-877-525-0337

Additional news