MD Multimédia inc. - Pierre Couture and Claude-Yvon Provost prohibited from trading securities and pursuing activities as advisers

Decisions and Freeze and cease trade orders Securities

Montréal – At the request of the Autorité des marchés financiers (AMF) and following the respondents' hearing, the Bureau de décision et de révision en valeurs mobilières (BDRVM) confirmed the validity on July 31, 2008 of the orders initially issued on November 1, 2007 against  Couture and Claude-Yvon Provost prohibiting them from trading in securities and pursuing activities as a securities adviser.

The BDRVM decision prohibited Pierre Couture and Claude-Yvon Provost from carrying on any activity in respect of a transaction in a form of investment governed by the Securities Act (the "Act") for and on behalf of MD Multimédia inc. It also prohibited the respondents from pursuing activities as an adviser, as defined in section 5 of the Act.

In its initial decision of November 1, 2007, the BDRVM stated that it was particularly concerned about facts raised by the AMF and an analysis of the request. These facts were confirmed at the respondents' hearing on November 28, 2007 before the BDRVM:

  • alleged illegal distribution;
  • failure by Pierre Couture and Claude-Yvon Provost to register as securities dealers and advisers;
  • lack of a prospectus that would have revealed any material fact related to the securities for distribution;
  • allegation that the patent could be sold to multinationals for an amount varying from $100 to $150 million;
  • the meeting scheduled on the very day of the hearing and related in particular to the opening of accounts; and
  • the investors being solicited already incurred losses with respect to previous investments.

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

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