Montréal - The Autorité des marchés financiers (the AMF) launched penal proceedings in the judicial districts of Terrebonne and
St-François against Jean-François Demers and Éric Landry Respondent Éric Landry should not be confused with financial planner and dealing representative (mutual fund dealer) Éric Landry of Yamachiche, holder of certificate 165995 and damage insurance agent for individuals Éric Landry of Québec, holder of certificate 190090. for activities in connection with illegal distributions. The AMF is seeking fines totalling $350,000.
More specifically, the AMF filed 44 charges against Jean-François Demers, whom it accuses of acting illegally as a securities dealer (14 counts), failing to fulfill an undertaking with the AMF (14 counts), aiding Développement immobilier Landry inc., Gestion immobilière Landry inc., Boisés Doncaster, Boisés Du Moulin, Groupe immobilier Landell inc. and 9151-6070 Québec inc. with making illegal distributions (14 counts) and making misrepresentations in respect of a transaction in securities.The AMF is seeking $344,000 in fines, or three to five times the minimum amounts set by law.
The AMF has also filed two charges against Éric Landry for acting illegally as a dealer. The AMF is seeking fines totalling $6,000 against him.
In this matter, Jean-François Demers and Éric Landry contacted investors, primarily officers of small businesses, through a promotional letter sent by mail. Afterwards, they contacted targeted investors to make sure they had received the mailing, further discuss the investment opportunity and set an appointment at which an offer to purchase was signed for a very small portion of undivided property for a rather modest financial contribution. In the weeks following this first meeting, the investors expected to receive a cheque that represented their return on the investment. Encouraged by this, investors were persuaded to invest more money (from $2,500 to $20,000). This scheme was usually repeated until the investor insisted on recovering the money invested. This was when it became impossible for investors to reach Jean-François Demers and Éric Landry and they lost the money invested.
In April 2005, Groupe immobilier Landell inc. and Jean-François Demers made an undertaking with the AMF to cease any activities in respect of distributing investment contracts, including the sale or offer for sale of property or undivided portions of property for purposes of investment or speculation in the short term.
The Autorité des marchés financiers(the "AMF") is the regulatory and oversight body for Québec's financial industry.
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