May 19, 2010 Securities

Montréal – The Autorité des marchés financiers (AMF) has launched penal proceedings against Alain Trempe, René Drouin The respondent René Drouin should not be confused with René Drouin attached to Desjardins Financial Services Firm in Saint-Odilon, who holds certificate no. 110 761 and who is not part of the current proceedings. and Guy Desjardins The respondent Guy Desjardins should not be confused with Guy Desjardins attached to Murray Charest et Ross, courtiers d'assurances générales inc. in Matane, who holds certificate no. 152 229 and who is not part of the current proceedings. in the Court of Québec, district of Saint-François, and is seeking fines totalling $118,000 for offences related to illegal distributions.

The AMF alleges that, between February 2004 and February 2005, Alain Trempe made and aided with illegal distributions and acted illegally as a securities dealer. Trempe is alleged to have entered into loan agreements with five investors for the benefit of C.F.M. that provided for interest payments of 4% on a monthly or annual basis. Twelve charges were laid against him and the AMF is seeking fines totalling $72,000.

Proceedings against Guy Desjardins and René Drouin

In the same matter, the AMF also filed charges against René Drouin (4 counts) and Guy Desjardins (3 counts), two purported dealers who were the subject of other penal proceedings for offences under the Securities Act. In this case, the AMF is seeking fines totalling $24,000 against René Drouin and $22,000 against Guy Desjardins in connection with pursuing an illegal practice and aiding with an illegal distribution.

In February 2010, Guy Desjardins was found guilty on three counts of illegal activity as a dealer and was fined $9,000. As well, in May 2009, the AMF launched proceedings against Guy Desjardins and René Drouin for similar offences related to C.F.M. and is seeking fines totalling $999,000 against Guy Desjardins and $300,000 against René Drouin. Trial dates are set for the fall of 2010.

Reminder for investors

The AMF wishes to remind investors of the importance of checking the Register of firms and individuals authorized to practice before entrusting funds to anyone for investment purposes. In case of doubt, contact the AMF Information Centre.

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

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