Enviromondial : Stevens Demers sentenced to
2 1/2 years in prison and fined over $1 million

Decisions and Freeze and cease trade orders Securities

Montréal – Judge Paul Chevalier of the Court of Québec (Criminal and Penal Division), district of Saint-Jérôme, today sentenced Stevens Demers, former president of Enviromondial, to 2 1/2 years in prison and ordered him to pay a fine totalling $1,097,500. The Autorité des marchés fiannciers (AMF) was seeking a harsher penalty in view of numerous aggravating factors in the matter.

The AMF, whcih was seeking a prison term of five years less a day, will analyze the Court's decision to determine whether it will file an appeal. The AMF believes economic crimes are serious and harmful and that perpetrators should be imposed penalties with maximum deterrence.

In his decision, Judge Chevalier noted the seriousness of the conduct of Stevens Demers: [translation] "The defendant is entirely responsible since he is the kingpin behind all the scheming that is behind the present accusations." He added: "The defendant's disdain for the rights of shareholders, for the laws of Québec governing securities and for the regulatory authorities overseeing these matters should not go unnoticed." Finally, the Judge stated: "Also noteworthy is the pursuit of illegal activity in spite of two convictions for similar offences that failed to induce him to respect the law and instead prompted him to seek ways to circumvent the law for his own purposes."

On September 29, 2008, Stevens Demers was found guilty on 346 charges filed by the AMF in March and July 2007. The AMF accused him of violating the Securities Act (the "Act") by :

  • aiding United Environmental Energy Corporation and Enviromondial International Vanuatu Inc. with the distribution of shares in United Environmental Energy Corporation without a prospectus approved by the AMF, thereby violating section 11 of the Act (173 charges);
  • aiding United Environmental Energy Corporation and Enviromondial International Vanuatu Inc. in pursuing activities as a securities dealer without being registered as such with the AMF, thereby violating section 148 of the Act (173 charges).

In February 2008, the AMF launched a further penal proceeding against Stevens Demers that included 64 charges related to the matter of Enviromondial.

Since January 2002, Stevens Demers and Enviromondial Inc. have been the subject of numerous court decisions and orders issued by Québec tribunals. Since September 15, 2008, Jean Robillard from the firm Raymond Chabot Grant Thornton has been acting as receiver in the matter of Enviromondial.

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

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