Freeze and cease trade orders against Pierre Jolicoeur and Corporation de capital B.M.T. 06

Decisions and Freeze and cease trade orders Securities

Montréal – At the request of the Autorité des marchés financiers (AMF), the Bureau de décision et de révision (the “Bureau”) issued freeze and cease trade orders on July 30, 2010 in relation to the activities of Pierre Jolicoeur and Corporation de capital B.M.T. 06.

Specifically, the Bureau ordered Pierre Jolicoeur and Corporation de capital B.M.T. 06 to cease any activity in respect of a transaction in a form of investment, including any activity as a securities dealer or adviser. The Bureau also ordered them not to dispose of the funds, securities or other assets in their possession.

In its request, the AMF sought immediate intervention by the Bureau given that an investor had informed an investigator that he was planning to make an additional investment by re-mortgaging his home. The Bureau indicated that an ex parte decision, namely, a decision made in the absence of the respondents, is necessary to ensure the protection of investors. Such a decision prevents respondents from continuing their activities, which disadvantage investors, who are promised high returns that will never be generated, and also prevents the improper use of investors’ funds.

The Bureau stated that it was particularly concerned about the following facts and allegations submitted by the AMF:

  • Pierre Jolicoeur and Corporation de capital B.M.T. 06 were acting as securities dealers and advisers without being registered with the AMF;
  • National Bank of Canada requested that BMT’s bank and brokerage accounts be closed in view of the high potential of fraud;
  • The respondents promised investors annual returns of 15% to 30%;
  • The AMF’s investigation revealed that BMT’s brokerage account with National Bank had posted a negative return of 14% since December 31, 2009;
  • More than $871,000 was deposited in BMT’s business account between December 4, 2009 and April 14, 2010, but less than $400,000 remained in the account;
  • According to the AMF’s investigation, a portion of investors’ funds was used to issue cheques to Mr. Jolicoeur personally;
  • Mr. Jolicoeur gained investors’ trust by offering them high returns and telling them that he did not take investments “from just anyone, anytime.”

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

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