Jitec - Benoît Laliberté fined almost $900,000

Decisions and Freeze and cease trade orders Securities

Montréal – In a decision handed down today in the Court of Québec (Criminal and Penal Division), district of Montréal, Judge Céline Lacerte-Lamontagne ordered Benoît Laliberté to pay a fine totalling almost $900,000, plus costs. In February 2008, he was found guilty on  charges brought against him by the Autorité des marchés financiers (AMF).

The AMF is satisfied with the fine being imposed; it reflects the conclusive and overwhelming evidence as well as the seriousness of the offences.

On February 21, 2008, Judge Lacerte-Lamontagne found Benoît Laliberté guilty of violations under the Securities Act (the "Act") for:

  • failing to file a report disclosing a change in his control over the securities of a reporting issuer, namely, Jitec Inc., thereby violating section 97 of the Act (30 counts);
  • trading in the securities of Jitec Inc. while having privileged information about the company, thereby violating section 187 of the Act (4 counts);
  • assisting Jitec Inc. in making a misrepresentation in press releases that could affect the market value or price of the company's securities, thereby violating section 196 of the Act (2 counts);
  • making a misrepresentation in connection with a transaction relating to securities by telling investors, at the time they purchased shares of Jitec Inc., that contracts worth millions of dollars had been or would soon be signed by Jitec Inc. and another company, thereby violating section 197 of the Act (4 counts);
  • giving an undertaking relating to the future value or price of the securities of Jitec Inc. in connection with a transaction relating to the securities of the company, thereby violating section 199 of the Act (1 count).

The AMF could not seek a prison term against Benoît Laliberté since he was convicted of offences committed before necessary legal provisions came into force.

The AMF wishes to stress once again that insider trading and misrepresentations are unacceptable conduct for which heavy penalties should be imposed.

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

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