In the Matter of Norshield - AMF Sues 11 individuals, Files 140 Charges and Seeks $976,000 in Fines
Securities
Montréal – The Autorité des marchés financiers (the "AMF") has launched penal proceedings in the Court of Québec against René Joubert, René Proteau, Yves Tardif, Michel L’Italien, William Marston, Francesco Iacono, Marc-André Froment, Enrico Bruni, Éric Couture, Claude Tardif and Christophe Balayer, and is seeking $976,000 in fines.
The 11 suits launched by the AMF are tied to the illegal sale of four investment vehicles related to Norshield, namely, Olympus International Preferred Fund Ltd., Globe-X Enhanced Yield Fund, Commax Management inc. and Balanced Return Fund.
- René Joubert faces 62 charges, namely, 25 charges for illegal practice as a dealer, 25 charges for distribution without a prospectus and 12 charges for misrepresentations. The AMF is seeking $420,000 in fines against him.
- René Proteau faces 21 charges, namely, nine charges for illegal practice as a dealer, nine charges for distribution without a prospectus and three charges for misrepresentations. The AMF is seeking $138,000 in fines against him.
- Yves Tardif faces 16 charges, namely, seven charges for illegal practice as a dealer, seven charges for distribution without a prospectus and two charges for misrepresentations. The AMF is seeking $104,000 in fines against him.
- Michel L’Italien faces eight charges, namely, seven charges for distribution without a prospectus and one charge for misrepresentations. The AMF is seeking $80,000 in fines against him.
- William Marston faces five charges for distribution without a prospectus. The AMF is seeking $50,000 in fines against him.
- Francesco Iacono faces six charges, namely, three charges for illegal practice as a dealer and three charges for distribution without a prospectus. The AMF is seeking $36,000 in fines against him.
- Marc-André Froment faces six charges, namely, three charges for illegal practice as a dealer and three charges for distribution without a prospectus. The AMF is seeking $36,000 in fines against him.
- Enrico Bruni faces six charges, namely, three charges for illegal practice as a dealer and three charges for distribution without a prospectus. The AMF is seeking $36,000 in fines against him.
- Éric Couture faces three charges for distribution without a prospectus. The AMF is seeking $30,000 in fines against him.
- Claude Tardif faces four charges, namely, two charges for illegal practice as a dealer and two charges for distribution without a prospectus. The AMF is seeking $24,000 in fines against him.
- Christophe Balayer faces three charges, namely, one charge for illegal practice as a dealer, one charge for distribution without a prospectus and one charge for misrepresentations. The AMF is seeking $22,000 in fines against him.
The investigation into this matter revealed that a total of $3,282,605 was invested by 51 investors.
The representatives in the matter of Norshield, other than Claude Tardif, were all known to the AMF. The representatives René Proteau, René Joubert, Yves Tardif, Éric Couture, Francesco Iacono, MarcAndré Froment, Christophe Balayer, Enrico Bruni and William Marston were part of penal proceedings launched in the matter of Mount Real. As well, Michel L’Italien was recently ordered to pay $500,000 in the matter of Water Bank of America.
As the lead regulator in respect of Norshield, the Ontario Securities Commission (the "OSC") undertook an investigation regarding the officers, while the AMF investigated the activities of representatives in its jurisdiction. On March 8, 2010, the OSC ruled that Norshield officers John Xanthoudakis and Dale Smith breached Ontario securities laws.
The Autorité des marchés financiers (the "AMF") is the regulatory and oversight body for Québec's financial sector.
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