Illegal insider trading - AMF uncovers tipping network and will seek highly deterrent fines
Securities
Montréal - The Autorité des marchés financiers (the "AMF") recently launched penal proceedings in connection with an illegal insider trading scheme involving Renée Morier, a former executive assistant to a senior officer of BCE Inc., and some of her family members and friends, that allegedly enabled the group to realize profits in excess of $1 million between 2012 and 2015. These individuals allegedly used privileged information about transactions involving Renée Morier's employer.
"By using privileged information that is not available to the public, offenders create an imbalance that has an impact on investor confidence and market efficiency. This is unacceptable and the reason why the AMF has made deterring illegal insider trading a top priority. Our investigation teams continue to develop and refine tools to enable them to more effectively identify suspicious market transactions. These efforts will, we hope, deter others who try to capitalize on privileged information in order to realize illegal profits, said AMF President and CEO Louis Morisset.
Freeze orders and searches
The AMF intervened in this matter earlier this year by executing search warrants and obtaining freeze and cease trade orders. A total of $1,915,929.34 was frozen in the respondents' accounts through the AMF's quick and orderly intervention.
42 charges and deterrent fines of $2.6 million
More specifically, the AMF filed nine charges against Renée Morier: one count of using privileged information and eight counts of tipping, i.e., communicating privileged information that is not yet known to the public. If found guilty on all charges, Renée Morier is liable to a minimum fine of $73,000.
Renée Morier's spouse, Sylvain Milette, is facing eight charges: two counts of illegal insider trading, one count of using privileged information, one count of conspiracy to trade in securities based on privileged information, and four counts of tipping. If found guilty on these eight charges, Sylvain Milette is liable to a minimum fine of $138,802.
Francis Beauchamp, a friend of Renée Morier and Sylvain Milette, is facing nine charges: three counts of illegal insider trading, one count of using privileged information, one count of conspiracy to trade in securities based on privileged information, and four counts of tipping. Francis Beauchamp is liable to a minimum fine of $703,484 if found guilty on all charges filed against him by the AMF.
Renée Morier, Sylvain Milette and Francis Beauchamp are also facing prison terms.
Francis Beauchamp's parents, Alain Beauchamp and Jeanne Brulé, are each facing four charges: two counts of illegal insider trading, one count of using privileged information, and one count of conspiracy to trade in securities based on privileged information. If found guilty on all charges, they are liable to a minimum fine of $966,926.
Lastly, Renée Morier's parents, Raymond Morier and Marie Fenez, both of whom are living in Alberta, are each facing four charges: three counts of illegal insider trading and one count of using privileged information. If found guilty on all charges, they are liable to a minimum fine of $790,892.
The AMF wishes to thank the Alberta Securities Commission for its support in this investigation.
The Autorité des marchés financiers (the "AMF") is the regulatory and oversight body for Québec's financial sector.
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