Decisions and Freeze and cease trade orders Securities

Montréal – On December 12, 2007, before Judge Perron of the Court of Québec (Criminal and Penal Division), district of
Saint-François, Christophe Balayer pleaded guilty to the 10 counts brought against him by the Autorité des marchés financiers (the “AMF”). Madam Justice Perron ordered him to pay a fine of $34,000, double the minimum fine for 8 of the 10 counts, plus costs of $2,500.

Christophe Balayer faced 10 counts of violating the Securities Act (the “Act”) by:

  • aiding, by act or omission, Mount Real Acceptance Corporation with a distribution of a form of investment governed by the Act, namely, promissory notes issued by Real Vest Investments Ltd. and MRACS Management Ltd., without obtaining a receipt for a prospectus approved by the AMF, thereby violating sections 11 and 208 of the Act (1 count);
  • acting as a dealer or adviser without being registered with the AMF, thereby violating section 148 of the Act (8 counts);
  • making misrepresentations in respect of a transaction in a security, thereby violating sections 197(1) and 204 of the Act (1 count).

On January 24, 2007, the AMF launched penal proceedings in the Court of Québec (Criminal and Penal Division) against 24 individuals involved at various levels in the matter of Mount Real Corporation and its affiliates. Christophe Balayer is the third person to be found guilty as part of these proceedings. On October 30, 2007, Victor Lacroix and Armando Ferruci were found guilty on the 26 and 48 counts brought against them by the AMF, and were ordered to pay fines of $156,000 and $288,000 respectively.

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

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