Cogetax - AMF launches $532,000 suit against Jean-François Laroche

Securities

Montréal – The Autorité des marchés financiers (AMF) has launched a penal proceeding in the Court of Québec (Criminal and Penal Division) against Jean-François Laroche and is seeking a fine in the amount of $532,000.

As part of the suit, the AMF has filed 86 charges against Jean-François Laroche, vice-president, 9114-9716 Québec inc., which operates under the name Groupe Conseil Cogetax inc., for violating sections 11 and 148 of the Securities Act (R.S.Q., c. V-1.1) by:

  • pursuing activities as a securities dealer without being registered as such with the AMF, thereby violating section 148 of the Act;
  • distributing securities without holding a prospectus approved by the AMF, thereby violating section 11 of the Act.

The 86 charges brought against Mr. Laroche pertain to irregular investments totalling $928,052.59 in connection with 15 investors between 2002 and 2006.

On February 10, 2006, the Bureau de décision et de révision en valeurs mobilières (BDRVM) issued a freeze order against Cogetax and Jean-François Laroche, among other parties, for distributing securities without a prospectus approved by the AMF in accordance with section 11 of the Actand without being registered with the AMF as a securities dealer or adviser, thereby violating section 148 of the Act. The BDRVM extended the order on May 11, 2006, August 1, 2006, November 7, 2006, February 2, 2007 and April 24, 2007. The freeze orders will expire on August 1, 2007. A freeze order is intended in particular to protect investors affected by suspicious distributions while the AMF conducts an investigation into the matter.

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

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Information:

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Frédéric Alberro (514) 940-2176

Information Centre: (877) 525-0337

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