Decisions and Freeze and cease trade orders Securities

Montréal – On October 26, 2007, the Bureau de décision et de révision en valeurs mobilières (BDRVM) partially lifted the freeze orders it had issued on August 21 with respect to 3965121 Canada inc. in order to:

  • allow and authorize the Bank of Montreal to remit to Primatlantis Capital S.E.C. (“Primatlantis”) all the sums held by it in the accounts bearing numbers 0230 1318-345 and 0230 4652-866;
  • allow Edward B. French, lawyer with the firm Stackpole & French in Stowe, Vermont, to proceed with the sale of a parcel of land in Vermont on which 3965121 Canada inc. had accepted an offer to purchase, in order to distribute the proceeds of the sale to the secured creditors holding security on the assets of 3965121 Canada inc.

Under agreements entered into between 3965121 Canada inc. and Primatlantis prior to the freeze order issued by the BDRVM, Primatlantis is the creditor of 3965121 Canada inc. Given that 3965121 Canada inc. failed to respect its obligations, Primatlantis exercised its contractual rights on the assets of 3965121 Canada inc. The Autorité des marchés financiers (the “AMF”) was therefore not opposed to the request to partially lift the freeze orders.

On August 21, 2007, at the request of the AMF, the BDRVM renewed the freeze order on the assets of Gestion Guychar (Canada) inc., Guy Charron, Huguette Gauthier, Gérald Turp, Turp DTD Consultants inc., Richard Lanthier, 3965121 Canada inc., 3330575 Canada inc. and 177889 Canada  inc., as well as the cease trade orders in this matter. The BDRVM also ordered Richard Lanthier, Guy Charron and Huguette Gauthier to cease carrying on business as securities advisers.

On February 27, 2007, at the request of the AMF, an initial freeze and cease trade order was issued by the BDRVM. In its decision, the BDRVM cited, among other things, that it was concerned about the following facts:

  • a large number of investors had been solicited;
  • many investors were having trouble redeeming their investments;
  • certain investors had not received any document confirming their initial investment;
  • allegations that a form of investment subject to the Securities Act had been distributed without the prospectus required by law and by non-authorized persons.

The AMF proceeded with searches in connection with this matter.

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

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