End of proceedings in the Mount Real matterLino P. Matteo’s appeal dismissed

Decisions and Freeze and cease trade orders Securities

Montréal, October 24, 2018 – On September 13, 2018, the Honourable François Dadour of the Superior Court of Québec dismissed the appeal of Lino P. Matteo, the former CEO of Mount Real Corporation, in connection with the trial judgment handed down on September 7, 2017 by the Honourable Hélène Morin of the Court of Québec.

“The dismissal of Mr. Matteo’s appeal puts an end to the penal proceedings brought by the Autorité des marchés financiers (the “AMF”) following Mount Real Corporation’s collapse,” said Louis Morisset, AMF President and CEO. “I would like to once again highlight the tremendous work that has been carried out by our investigations and analysis teams over the past few years. We are very satisfied with this outcome, particularly for the hundreds of victims of this complex fraud.”

Justice Morin had found Mr. Matteo guilty of 270 counts under the Securities Act, namely:

  • 75 counts of aiding Mount Real Corporation, by act or omission, in making misrepresentations in its disclosure documents that were likely to affect the value or the market price of securities or in making misrepresentations in respect of a transaction;
  • 195 counts of aiding Real Vest Investments Ltd and Mount Real Acceptance Corporation in distributing a form of investment governed by the Securities Act without preparing a prospectus and obtaining a receipt therefor from the Commission des valeurs mobilières du Québec or the AMF or without the benefit of an exemption.

In her decision issued on November 27, 2017 (in French only), Judge Morin had ordered Lino P. Matteo to pay fines totalling $4,910,000 and serve a maximum term of imprisonment of five years less a day.

The Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector.

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