ICC Capital Management and John Dracontaidis - Freeze orders, cease trade orders, and receivership - receivers's report filed


Montréal – On October 5, Nicolas Boily of the firm Raymond Chabot Grant Thornton, acting as receiver in the matter of 9095-0049 Québec Inc., Axia Consultant Inc., IND Management Inc. and John Dracontaidis, filed an initial report with the Superior Court of Québec in which he outlines the findings of his audits. This filing follows several freeze and cease trade orders and the appointment of a receiver a few weeks ago.

The receiver found that financial management and accounting by 9095-0049 Québec Inc., Axia Consultant Inc, IND Management Inc. and John Dracontaidis were conducted in an unacceptable manner, particularly in regard to the following:

No accounting or reliable and complete financial statements for the companies and John Dracontaidis were kept, as available financial data were practically non-existent in many respects;

No complete and reliable register of investors was kept and no accounting of investments was performed;

The investments, which represented the main assets of the companies and of John Dracontaidis, were carried out by them using the funds received from investors, and they were not based, in many respects, on sound business logic;

The most significant investments were made by the companies and John Dracontaidis based on a simple request to persons close to John Dracontaidis without any guarantee, without obtaining financial statements from the beneficiaries of such investments or without adequate contractual documentation.

The receiver concluded that receivership of the companies and John Dracontaidis was in the best interests of investors and should be maintained.

Nicolas Boily was appointed receiver by Judge Richard Wagner of the Superior Court of Québec on August 19, 2009, at the request of the AMF. The request to appoint a receiver was not contested by the companies or individuals involved.

In this same matter, on July 29, 2009, at the request of the AMF, the Bureau de décision et de révision en valeurs mobilières (BDRVM) also ordered that several funds, securities and assets held by John Dracontaidis be frozen. The BDRVM also ordered 9095-0049 Québec Inc., ICC Capital Management Inc., Axia Consulting Inc., Axia Business Center Inc., IND Capital Management, John Dracontaidis, Dimitrios (Jimmy) Kavathas, Filippo Argento and Stéphane Charbonneau to cease all securities trading and to cease pursuing activities as securities advisers.

The receiver’s report (pdf - 210 KB)This link will open in a new windowUpdated on October 5, 2009 is available on the AMF website under News.

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

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