Charlito Hael fined a total of $136,600
Decisions and Freeze and cease trade orders Insurance
Montréal – On June 19, 2019, the Honourable Alexandre St-Onge of the Court of Québec, district of Montréal, fined Charlito Hael a total of $136,600 for offences committed under the Act respecting the distribution of financial products and services.
Charlito Hael was found guilty of 15 counts in a penal proceeding (French version only) instituted by the Autorité des marchés financiers (AMF): nine counts of making a misrepresentation to a client, three counts of granting a premium rebate that did not appear in the insurance contract issued by or on behalf of the insurer, two counts of contravening the trading instructions of a client or failing to execute transactions requested by a client, and one count of contravening a freeze order issued by the Financial Markets Administrative Tribunal.
At the time of the alleged facts, Charlito Hael held a certificate issued by the AMF in insurance of persons. For more than three years, he employed a scheme that allowed him to appropriate, for personal purposes, sums of money remitted to him for the payment of insurance premiums.
The product offered by Charlito Hael under the scheme was travel insurance covering medical expenses for non-residents of Canada—a pre-requisite for obtaining a super visa from the Government of Canada. A super visa lets individuals visit their children or grandchildren in Canada for up to two years at a time.
As the insurance premiums were not remitted to the insurer, or were remitted late, the travel insurance did not come into force and the insureds unknowingly found themselves without insurance coverage for anywhere from a few weeks to the full duration of their stay in Québec.
On March 25, 2020, Charlito Hael was also ordered to repay the AMF $29,039.45 plus interest and the additional indemnity as of the formal notice.
The AMF had instituted a subrogatory recourse against Charlito Hael after compensating a claimant through the Fonds d’indemnisation des services financiers (financial services compensation fund). The claimant had filed an application for compensation with the AMF for the reimbursement of medical expenses after realizing that the insurance policy he had purchased had never come into force.
The Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector.
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