Montréal, April 20, 2017 – On March 3, 2017, Judge Anne-Marie Jacques of the Court of Québec, district of Longueuil, imposed a 36-month prison term and fines totalling $738,000 on Claude Mercier for illegal practice as a securities dealer.
This decision is further to penal proceedings launched by the Autorité des marchés financiers (the “AMF”) in 2011. Claude Mercier faced 84 charges, namely, 71 charges related to distribution without a prospectus and 13 charges related to illegal practice as a securities dealer.
The AMF’s investigation revealed that Claude Mercier set up a Ponzi scheme and approached his victims by offering them an investment, in the form of a loan, in a California video game development firm connected to a major corporation.Claude Mercier promised investors annual returns of 10% to 35%.The 24 victims in the matter invested a total of $1,355,599, which was entirely lost.
After having considered the aggravating circumstances raised by the AMF and the parties’ joint recommendation, Judge Jacques ratified the recommendation and imposed fines totalling $738,000 for all of the charges and a prison term of 36 months for the charges relating to distribution without a prospectus.
The Autorité des marchés financiers (the “AMF”) is the regulatory and oversight body for Québec’s financial sector.
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