Decisions and Freeze and cease trade orders Securities
Montréal – In a decision handed down on June 13, 2007, Judge Michel Lassonde of the Court of Québec dismissed the appeal filed by Stevens Demers. Mr. Demers was appealing a decision issued by the Bureau de décision et de révision en valeurs mobilières (BDRVM) on February 28, 2006 whereby he was prohibited from acting as a director or officer of an issuer and from voting for a person with whom he had a relationship, within the meaning of section 5 of the Securities Act, in connection with the election of directors at Enviromondial Inc., for a period of five years as of the date of the decision.
Judge Lassonde noted that the bad faith of Stevens Demers had been amply demonstrated by the Autorité des marchés financiers (AMF). He added that following an order by the Commission des valeurs mobilières prohibiting Enviromondial from distributing its securities, Stevens Demers continued business as usual. The Judge therefore concluded that the appeal filed by Stevens Demers appeared to be dilatory and that the decision of the BDRVM was well founded in fact and in law.
On March 5, 2007, the AMF launched penal proceedings in the Court of Québec against Stevens Demers and sought, in addition to a prison term, a fine totalling $1,215,000, plus costs. In its suit, the AMF filed 162 charges against Stevens Demers for violating the Securities Act, R.S.Q. c. V-1.1 1 (the “Act”):
- by assisting United Environmental Energy Corporation and Enviromondial International Vanuatu inc. with the distribution of the securities of United Environmental Energy Corporation without holding a prospectus approved by the AMF, thereby violating section 11 of the Act (81 charges);
- by assisting United Environmental Energy Corporation and Enviromondial International Vanuatu inc. with the pursuit of activities as a securities dealer without being registered for such purpose with the AMF, thereby violating section 148 of the Act (81 charges).
Stevens Demers and Enviromondial inc. have been the subject of numerous decisions and orders from the courts.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec’s financial sector.
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Frédéric Alberro (514) 940-2176
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