Montréal, February 3, 2011 - The Autorité des marchés financiers (the AMF) launched penal proceedings against seven individuals in the matter of Gestion 2007 inc. and Gestion International 2007 inc. and seeks fines of $10,848,000.

Over $8 million in fines and a prison term for Rock-Robert Bilodeau
More specifically, the AMF has filed 434 charges against Rock-Robert Bilodeau, president of Gestion 2007 inc. and Gestion International 2007 inc. The AMF accuses him of aiding Gestion 2007 inc. and Gestion International 2007 inc. with making distributions without a prospectus on 262 occasions and of acting as a securities dealer without being registered as such on 23 occasions. The AMF also accuses him of making misrepresentations on transactions in securities on 149 occasions by telling investors that the capital invested was 100% guaranteed.

The AMF is seeking fines totalling $8,335,000 and a prison term for Rock-Robert Bilodeau. In determining the fines, several aggravating factors were considered, including the fact that Rock-Robert Bilodeau was previously registered as a representative in insurance of persons and group insurance, and as a mutual fund dealer.

Six additional defendants
In this matter, the AMF has also filed charges against four additional individuals for illegally pursuing activities as securities dealers, aiding with illegal distributions and making misrepresentations. Paola Burgdorfer faces 101 charges for which the AMF is seeking fines totalling $1,460,000. Richard Denommé faces 53 charges and $615,000 in fines. Marc Toutloff faces 25 charges and $231,000 in fines. As for Maryse Labarre, she faces 11 charges and fines of $156,000.

Finally, the AMF filed four counts for illegal practice and aiding with illegal distributions against Gerard Reid and is seeking fines of $36,000. Marco Veilleux is facing five charges of illegal practice as a dealer, and the AMF is seeking fines totalling $15,000.

In this matter, investors were offered various investment programs with attractive returns - - between 2 and 10% per month. Indications that the investments were safe and offered through Banque Privée Edmond de Rothschild Europe in Luxembourg reassured many investors and gave an international flavour to the investments offered. The investors made their investments primarily by cheque or gave cash to Rock-Robert Bilodeau and his referral agents.

The AMF's investigation did not determine the total losses incurred by investors. However, it did reveal that the 79 investors for whom charges were filed invested and paid approximately $8.7 million. In this matter, very few investors were able to recover the capital invested in full or in part.

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

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