Montréal - On June 22, 2015, Judge Réna Émond of the Court of Québec, district of Québec City, ratified the parties' joint proposals and imposed fines totalling $1,000,000 on Jacques Rancourt and Guylain Pelletier for offences in connection with the illegal distribution of securities of Véhicules Nemo inc. between 2004 and 2007.
Jacques Rancourt, who held, among others, the positions of president, director, CEO and, subsequently, chief operating officer of Véhicules Nemo inc., pleaded guilty to 56 charges filed by the Autorité des marchés financiers (the "AMF"). He was ordered to pay total fines of $700,000, namely, slightly more than double the minimum fines set out by law, in respect of all charges initially filed by the AMF. More specifically, Jacques Rancourt pleaded guilty to 25 charges of illegal distribution of the securities of Véhicules Nemo inc., 25 charges of illegal practice as a securities dealer, four charges of representing to investors that these securities would be listed on an exchange without the prior approval of the AMF, and two charges of contravening an undertaking entered into with the AMF to cease distribution of the company's securities.
Guylain Pelletier, who also held the positions of president, director and secretary of Véhicules Nemo inc., pleaded guilty to 21 charges and was fined a total of $300,000. More specifically, he pleaded guilty to 20 charges of illegal distribution of the company's securities and one charge of contravening an undertaking entered into with the AMF. These fines represent more than double the minimum fines set out by law in respect of all charges initially filed by the AMF.
On May 26, 2015, Judge Émond noted the withdrawal of the charges against Véhicules Nemo inc. as the company had voluntarily surrendered its registration on April 26, 2013.
Non-applicable prospectus exemptions
The offences pertaining to illegal distribution in this matter are related to an inadequate application of various prospectus exemptions with respect to 27 investors who were led to believe that small electric trucks would be marketed for use by municipal markets, parks and schools, and who ultimately lost their $420,000 investment.
The Autorité des marchés financiers (the "AMF") is the regulatory and oversight body for Québec's financial sector.
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