MD Multimédia inc. - AMF files 4 charges and seeks $24,000 in fines

Securities

Montréal – The Autorité des marchés financiers (AMF) has launched penal proceedings against Claude Yvon Provost and Pierre Couture in the Court of Québec (Criminal and Penal Division), district of Québec City.

In its suit against Claude Yvon Provost, the AMF has filed 2 charges and is seeking $18,000 in fines for:

  • carrying on business as a securities dealer without being registered as such with the AMF by distributing a form of investment governed by the Securities Act (the Act), thereby violating section 148 of the Act and committing an offence under section 202;
  • making, by act or omission, a distribution of a form of investment governed by the Act without preparing a prospectus for approval by the AMF, thereby violating section 11 of the Act and committing an offence under section 202, with reference to section 208 of the Act.

The fines being sought against Claude Yvon Provost amount to three times the minimum fines prescribed by law. The AMF has taken into account the following aggravating factors in determining the fines being sought: the vulnerability of victims and the need for a deterrent penalty.

The AMF has also filed 2 charges against Pierre Couture and is seeking $6,000 in fines for:

  • carrying on business as a securities dealer without being registered as such with the AMF by distributing a form of investment governed by the Act, thereby violating section 148 of the Act and committing an offence under section 202;
  • making, by act or omission, a distribution of a form of investment governed by the Act without preparing a prospectus for approval by the AMF, thereby violating section 11 of the Act and committing an offence under section 202, with reference to section 208 of the Act.

Thanks to the due care and vigilance exercised by AMF investigators in this matter, a number of illegal distributions have been prevented. On November 1, 2007, the AMF, after being informed of a meeting with potential investors, immediately applied to the Bureau de décision et de révision en valeurs mobilières (BDRVM) and obtained an ex parte cease trade order against Provost and Couture. The order was served on the respondents without delay, thereby helping to disrupt illegal transactions under way before investors were able to make any financial disbursements in the illegal scheme.

The AMF reminds investors of the following:

  • always contact the AMF Information Centre to make sure that the representative or firm you are dealing with is registered with the AMF;
  • if an investment proposal seems suspicious, refer the matter to the AMF Information Centre; this can help the AMF further protect consumers.

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

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Information:

Media only:
Sylvain Théberge: (514) 940-2176

Information Centre:
Québec City: 418-525-0337
Montréal: 514-395-0337
Toll-free: 1-877-525-0337

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