Securities

Montréal - In an oral judgment handed down on June 6, 2013, Judge Jean-Pierre Dumais of the Court of Québec City, district of Québec, imposed fines of $193,000 on Réjeanne Pelletier, Guy Drouin and Laurent Beaudoin. In February 2013, they were found guilty of the 16 charges filed by the Autorité des marchés financiers (pdf - 43 KB)This link will open in a new window (the "AMF") in connection with the illegal distribution of products related to Gestion Nali inc., Gestion Lactée inc. and Club d'investissement GPS SEC.

$168,000 in fines for Réjeanne Pelletier

Réjeanne Pelletier, who was facing 14 charges, i.e., seven for illegal practice as a securities dealer and seven for aiding with an illegal distribution, was fined a total of $168,000, four times the minimum penalty under the law.

In handing down the verdict, the court took into consideration a series of aggravating factors, in particular that Réjeanne Pelletier solicited all the victims, who were vulnerable and had always invested in highly secure investments, and abused their trust. The court also took into account the $202,723.03 invested and lost by Réjeanne Pelletier, and the fact that these funds were the victims' life savings. In addition, the court determined that Réjeanne Pelletier benefitted personally from the distributions, since she was a director and officer of two of the companies in which funds were invested illegally, and that she acted with premeditation given the victims' weak investment knowledge. Lastly, the court considered the fact that Réjeanne Pelletier was registered with the AMF under An Act respecting the distribution of financial products and services (the "Act").

$15,000 in fines for Guy Drouin

Guy Drouin was fined $15,000, triple the minimum penalty under the law, for aiding with an illegal distribution.

The court took into account that Guy Drouin was registered with the AMF under the Act, that he had taken part in the incorporation and organization of Gestion Nali inc., and that he had been grossly negligent in not protecting investors after receiving their funds. The judge also criticized Guy Drouin for his lack of transparency when contacted by one of the victims and questioned about the funds she had invested. The judge considered that this lack of transparency prevented the victim from being able to exercise her rights and recourses in a timely manner.

$10,000 in fines for Laurent Beaudoin

Laurent Beaudoin was fined $10,000 for one count of aiding with an illegal distribution, double the minimum penalty under the law.

The court took into account the fact that Laurent Beaudoin was registered with the AMF under the Securities Act, that he had taken part in the incorporation and organization of Gestion Lactée inc., and that he signed the share subscription documents on behalf of the company.

Réjeanne Pelletier and Laurent Beaudoin are named in another penal proceeding launched by the AMF in 2011 for similar offences.

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

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