Montréal, July 25, 2011 - The Autorité des marchés financiers (the "AMF") has launched penal proceedings against John Dracontaidis, Dimitrios Kavathas and Andreas Bougadis in connection with illegal distributions. The AMF is seeking fines totalling $1,277,000.

More specifically, the AMF has filed 29 counts against John Dracontaidis, president, director and majority shareholder of 9095-0049 Québec Inc., also known as ICC Capital Management Inc. The AMF accuses him of acting illegally as a securities dealer (12 counts), personally making illegal distributions (2 counts) and aiding Axia Consultant Inc., 9095-0049 Québec Inc. and IND Capital Management Inc. with making illegal distributions (15 counts). The AMF is seeking fines totalling $1,010,000 against him.

The AMF has also filed 18 counts against Dimitrios Kavathas for acting illegally as a securities dealer (10 counts) and for aiding IND Capital Management Inc. and 9095-0049 Québec Inc with making illegal distributions (8 counts). The AMF is seeking fines totalling $228,000 against him.

Finally, the AMF filed 4 counts against Andreas Bougadis for acting illegally as a securities dealer (2 counts) and for aiding 9095-0049 Québec Inc. with making illegal distributions (2 counts). The AMF is seeking fines totalling $39,000 against him.

On July 29, 2009, at the request of the AMF, the Bureau de décision et de révision (the "Bureau") issued freeze orders on several funds, securities and assets held by John Dracontaidis. The Bureau also prohibited 9095-0049 Québec Inc., ICC Capital Management Inc., Axia Consultant Inc., Axia Business Center Inc., IND Capital Management, John Dracontaidis, Dimitrios Kavathas, Filippo Argento and Stéphane Charbonneau from carrying on any activities in respect of transactions in securities and any activities as a securities adviser.

On August 19, 2009, Nicolas Boily from the firm Raymond Chabot Grant Thornton was appointed receiver in the matter of ICC, Axia, IND and Dracontaidis. The report he filed on October 5, 2009 concludes that the companies held by Dracontaidis were managed in an unacceptable manner and that the liabilities, which were primarily loans from investors, significantly exceeded the assets.

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

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