Group Newtech International inc., Newtech Brake Corp. and Guy-Paul Gauthier fined $21,000

Securities Decisions and Freeze and cease trade orders

Montréal – In a decision handed down on April 24, 2008, Judge Jean-Georges Laliberté of the Court of Québec (Criminal and Penal Division), district of Terrebonne, found Group Newtech International Inc., NewTech Brake Corp. and Guy-Paul Gauthier guilty in connection with charges filed in September 2006 by the Autorité des marchés financiers (AMF).

NewTech Brake Corp. was found guilty of the charge filed against it and ordered to pay a fine in the amount of $5,000 plus costs for violating the Securities Act (the "Act") by:

  • distributing a form of investment governed by the Act without a prospectus approved by the regulatory authority.

Guy-Paul Gauthier was found guilty of the two charges filed against him and ordered to pay fines totalling $6,000 plus costs for violating the Act by:

  • distributing a form of investment governed by the Act without a prospectus approved by the regulatory authority ($5,000);
  • pursuing activities as a securities dealer without being registered as such with the regulatory authority ($1,000).

On July 2, 2008, Judge Laliberté ordered Group Newtech International Inc. to pay a fine in the amount of $10,000 plus costs, which is double the prescribed amount, for violating the Act by:

  • assisting NewTech Brake Corp. in distributing a form of investment governed by the Act without a prospectus approved by the regulatory authority.

With respect to  Rancourt, the Judge was unable to conclude, without any reasonable doubt, that the defendant had knowledge of a securities distribution and therefore acquitted him of the charges brought against him, namely, of distributing a form of investment governed by the Act without a prospectus approved by the regulatory authority.

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

— 30 —

Information:

Media only:
Frédéric Alberro (514) 940-2176

Information Centre:
Québec City: 418-525-0337
Montréal: 514-395-0337
Toll-free: 1-877-525-0337