Illegal practice and distributions - Marc Jémus guilty


Montréal - On October 16, 2014, Justice of the Peace Christine Auger of the Court of Québec, district of Gatineau, found Marc Jémus guilty of various offences related to illegal distributions involving the firms Pension Positive and 3877311 Canada inc. in the Outaouais region.

The Autorité des marchés financiers (the AMF) accused Marc Jémus of acting illegally as a securities dealer (15 counts) and aiding Pension Positive with illegal distributions without a prospectus (13 counts). Sentencing representations for the charges to be laid against Marc Jémus are scheduled for December 2014.

In this same matter, on March 31, 2014, before Justice of the Peace Christine Auger of the Court of Québec, district of Gatineau, Robert Primeau and François Roy pleaded guilty respectively to 16 and 22 charges filed by the AMF for illegal practice as securities dealers and aiding Pension Positive inc. and/or 3877311 Canada inc. with illegal distributions. Further to the joint recommendation of the parties, Robert Primeau was fined a total of $76,200 and François Roy was fined a total of $92,400.

The AMF's investigation revealed that Marc Jémus had set up an RRSP rollover scheme through these two firms in order to invest in real estate. François Roy found the investors, Robert Primeau explained the real estate investment to them and Marc Jémus transferred the RRSPs. A total of 16 investors invested nearly $300,000 with these three individuals.

Reminder for investors
The AMF reminds investors that when using an investment strategy involving borrowing from registered accounts, the funds withdrawn from RRSPs, LIRAs or pension funds are taxable in the year in which they are withdrawn. Therefore, investors should anticipate the tax payable.

In her decision handed down with respect to Marc Jémus, Justice of the Peace Auger stressed the importance of authorities' ongoing financial awareness efforts with the public: "The authorities can never overemphasize the need for investors to be vigilant and prudent and to ensure they are informed about the investment product or vehicle and, especially, the dealer or any other individual taking charge of their savings."

Recently, the AMF launched a new financial awareness campaign focusing on the importance for consumers to ask questions about financial products and services.

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

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