Montréal - The Autorité des marchés financiers (the AMF) has launched penal proceedings against Jean-Pierre Beaudry, vice president of Central Network Communications Inc. (CNC Inc.) and is seeking fines totalling $310,000.
The AMF filed 47 charges against Jean-Pierre Beaudry for aiding CNC Inc. with making distributions without a prospectus on 23 occasions and for acting illegally as a securities dealer on 20 occasions. The AMF also accused Mr. Beaudry of making misrepresentations to victims and declaring that securities would be listed on a stock exchange in the event of a transaction in securities.
Mr. Beaudry's scheme involved suggesting that potential investors invest in CNC Inc., a company that specializes in developing and marketing computer solutions, in exchange for shares in the company. He allowed investors to believe that CNC Inc. would soon be listed on a stock exchange. He even offered shares in another company as a gift to some investors, indicating that the company would merge with CNC Inc. and that, as a result, the price of shares would increase significantly.
The AMF's investigation revealed that the six investors for whom charges were filed incurred losses of approximately $130,000.
The AMF reminds investors of the importance of being vigilant before investing, being careful with tempting offers and checking whether the representatives they are dealing with are registered with the AMF.
The Autorité des marchés financiers (the "AMF") is the regulatory and oversight body for Québec's financial industry.
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