Decisions and Freeze and cease trade orders Securities

Montréal – In a decision handed down on October 22, 2007, Judge Serge Boisvert of the Court of Québec (Criminal and Penal Division), district of Montréal, found Louis-Philippe Séguin and Corporation stratégique SPJ Inc. guilty of trading in the securities of Garda World Security Corporation while having privileged information about this issuer, thereby violating section 187 of the Securities Act (the “Act”).

In addition, Judge Boisvert accepted the guilty plea of Investissements Blue Ship Inc. and, accordingly, found it guilty of carrying on business as a securities dealer without being registered with the Autorité des marchés financiers (the “AMF”).

For these offences, the Court ordered Corporation stratégique SPJ Inc. to pay a fine of $20,000, or four times the minimum fine, ordered Louis-Philippe Séguin to pay a fine of $15,000, or one-and-a-half times the minimum fine, and ordered Investissements Blue Ship Inc. to pay a fine of $5,000, or five times the minimum fine. The Court justified imposing fines that were higher than the minimum fines based on the principle of denunciation and the fact that the defendants were financial market professionals.

Judge Boisvert did however acquit Louis-Philippe Séguin and Corporation stratégique SPJ Inc. of the accusations of carrying on business as a securities dealer without being registered and of making distributions without a prospectus approved by the AMF. The judge also acquitted Michel Lesage for making disributions without a prospectus approved by the AMF. The court based its decision largely on an interpretation of the dealings between the investors and promoters Séguin and Lesage. Judge Boisvert was of the opinion that the promoters had more than simple business dealings with the 50 initial investors and that as a result, they benefited from the exemption under section 3 of the Act.

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

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