Montréal - On October 24 and 25, 2012, following joint submissions by the parties, Justice Michel L. Auger of the Court of Québec, district of Québec City, fined six individuals involved in illegal distributions by Centre de traitement d'information de crédit (C.T.I.C.) inc. a total of $1,572,100.
Heavy fines against Patrick Gauthier
Patrick GauthierThe respondent Patrick Gauthier should not be confused with Patrick Gauthier attached to the firms Les assurances collectives des Trois-Vallées & ass. Inc. and Industrial Alliance, Insurance and Financial Services Inc., holder of certificate No. 137 896, who is not covered by this decision., President, sole director and shareholder of Centre de traitement d'information de crédit (C.T.I.C.) inc., pleaded guilty to 127 counts and was fined a total of $1,349,850.
The Autorité des marchés financiers (the AMF) claimed that he pursued illegal practice as a securities dealer (16 counts) and aided Centre de traitement d'information de crédit (C.T.I.C.) inc., CITCAP Groupe financier inc. and Gestion financière Appalaches inc. with illegal distributions (88 counts). The AMF also claimed that he aided Centre de traitement d'information de crédit (C.T.I.C.) inc. in breaching an undertaking given to the AMF (21 counts), made misrepresentations in the annual information form of CITCAP Groupe financier inc. (one count) and made misrepresentations in respect of a securities transaction (one count).
Illegal practice and distributions
In this matter, the AMF also brought charges of illegal practice as a securities dealer and aiding with an illegal distribution against five individuals. Benoît MercierThe respondent Benoît Mercier should not be confused with Benoît Mercier attached to the firm AssurExperts Boisselle et associés Inc., holder of certificate No. 123 659, who is not covered by this decision. pleaded guilty to 20 counts and was fined a total of $96,000. Réjean Lessard pleaded guilty to 16 counts and was fined a total of $67,500. Réjean Deschênes, who pleaded guilty to 7 counts, was fined a total of $28,750 and lastly, André Traversy and Pierre Émond pleaded guilty to 4 counts each and were fined $18,000 and $12,000 respectively.
The AMF's investigation showed that 61 investors lent a total of $2,491,750 to Centre de traitement d'information de crédit (C.T.I.C.) inc. through these six individuals. The investors are based mainly in the Québec City area as well as in Bas-Saint-Laurent, Montérégie and Estrie.
Cease trade and freeze orders were issued in this matter at the AMF's request in May 2009.
The Autorité des marchés financiers (the AMF) is the regulatory and oversight body for Québec's financial sector.
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