Fides - Gaby Cournoyer and David Allaire - 12-month prison term and fine of $647,000
Decisions and Freeze and cease trade orders Securities
Montréal – In a decision handed down on June 23, 2008, Judge Monique Perron of the Court of Québec (Criminal and Penal Division), district of Drummondville, sentenced Gaby Cournoyer to a prison term of 12 months.
Gaby Cournoyer and David Allaire were also ordered to pay $647,000 in fines. These sentences are further to the suit filed by the Autorité des marchés financiers (AMF) in July 2007. Gaby Cournoyer, who pleaded guilty on 69 charges, was sentenced to a prison term of 12 months and a fine totalling $393,000, plus costs, for violations under the Securities Act (the "Act") by:
- aiding, by act or omission, Fiducie Fides and Groupe Financier Fides inc., with the distribution of a form of investment governed by the Act without a prospectus approved by the AMF;
- pursuing activities as a securities adviser without being registered as such with the AMF.
The AMF was seeking a prison term against Gaby Cournoyer for exemplary purposes in light of the financial losses sustained by investors and the grossly negligent use of funds.
As for David Allaire, he pleaded guilty on 31 charges and was ordered to pay fines totalling $254,000, plus costs, for violations under the Act by:
- aiding, by act or omission, Fiducie Fides, with the distribution of a form of investment governed by the Act without a prospectus approved by the AMF;
- pursuing activities as a securities dealer without being registered as such with the AMF;
- pursuing activities as a securities adviser without being registered as such with the AMF.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
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