Illegal distributions - Sebouh Melkonian fined $127,000
Securities Decisions and Freeze and cease trade orders
Montréal - On February 15, 2012, Judge Johanne White, Justice of the Peace of the Court of Québec, district of Montréal, ordered Sebouh Melkonian to pay fines totalling $127,000. He pleaded guilty to 32 offences under the Securities Act.
Sebouh Melkonian, an employee of the private brokerage firm J. G. Frostt Corporate Finance Management Inc. at the time of the facts at issue, was found guilty of making illegal distributions (15 counts), acting illegally as a securities dealer (15 counts), stating that a security would be listed on the stock exchange without first obtaining permission from the AMF (one count) and making misrepresentations (one count).
In 2008, Sebouh Melkonian and Sam Grinfeld, whose trial is scheduled for February 27, 2012, approached a company in Laval seeking capital to ensure its future. Their goal was to collect $700,000 in public investments through the U.S. Pink Sheets stock exchange. Investors were approached to purchase shares in this Laval company. The actions of the respondents resulted in a loss of approximately $120,000 for 19 investors and contributed to the bankruptcy of the company, which had hoped to collect capital for its development in December 2008.
The Autorité des marchés financiers (the AMF) is the regulatory and oversight body for Québec's financial sector.
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