Securities Decisions and Freeze and cease trade orders
Montréal – Judge Jean-Guy Boilard of the Superior Court (Criminal and Penal Division) dismissed the appeal filed by Michel Maheux. Mr. Maheux had appealed a decision handed down on May 11, 2005 by Judge Jean B. Falardeau of the Court of Québec (Criminal and Penal Division) whereby he was found guilty on 74 counts brought against him by the Autorité des marchés financiers (AMF) and ordered to pay a total fine in the amount of $222,000, plus costs.
Judge Boilard stressed that Mr. Maheux was required to comply with the decision issued by the Québec Securities Commission in 2003. He noted that Mr. Maheux knowingly violated the Commission’s decision. He therefore concluded that the ruling handed down by Judge Falardeau on the initial 37 counts was well founded. As for the remaining 37 counts related to helping to make misrepresentations regarding a securities transaction, Judge Boilard recalled that a moratorium had been placed on the cooperative investment plan and concluded that no errors had been committed by Judge Falardeau with respect to the remaining 37 counts.
Mr. Maheux was accused of violating the Québec Securities Act for helping, by act or omission:
- the Coopérative de producteurs de bois précieux Québec Forestales to contravene a decision of the Québec Securities Commission;
- the Coopérative de producteurs de bois précieux Québec Forestales make a misrepresentation regarding a transaction by incorrectly stating during the distribution of the cooperative’s preferred units that the units qualified for the cooperative investment plan.
It should also be noted that Mr. Maheux was sentenced to a prison term on March 22, 2005 for contempt of court.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
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