Illegal Distributions in Drummondville Area - AMF launches penal proceedings against Denis Gariépy and his firms

Securities

Montréal - The Autorité des marchés financiers (the AMF) has launched penal proceedings in the judicial district of Drummond against Denis Gariépy and four of his firms, as well as Jean-Claude Vachon for activities in connection with illegal distributions. The AMF is seeking fines totalling $306,000.

More specifically, the AMF has filed 15 charges against Denis Gariépy, a notary in the Drummondville area. The AMF accuses him of acting illegally as a securities dealer (6 counts) and aiding Les jeux sur mesure Maxima inc., 9159-5462 Québec inc., 9162-5236 Québec inc. and 9188-5392 Québec inc. with making illegal distributions (9 counts). The AMF is seeking $255,000, or fines totalling five times the minimum amounts set by law.

The AMF also filed nine charges against Les jeux sur mesure Maxima inc., 9159-5462 Québec inc., 9162-5236 Québec inc. and 9188-5392 Québec inc., firms headed by Denis Gariépy, for making illegal distributions. The AMF is seeking fines totalling $45,000 against them.

Finally, the AMF filed 2 charges against Jean-Claude Vachon for acting illegally as a securities dealer (1 count) and for aiding 9188-5392 Québec Inc. with making illegal distributions (1 count). The AMF is seeking fines totalling $6,000 against him.

This matter relates to investments in a project involving the operation of gaming machines to be installed in casinos in Mexico despite the fact that Denis Gariépy and Jean-Claude Vachon were not registered as dealers with the AMF and the companies involved did not obtain a prospectus approved by the AMF.

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

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