Mount Real and Norshield - Fayza Rifai, Jaime Lao Wan Lian, Francesco Iaconno and Nick Mylonakis guilty

Securities Decisions and Freeze and cease trade orders

Montréal – Fayza Rifai, Jaime Lao Wan Lian, Francesco Iaconno and Nick Mylonakis, who were sued by the Autorité des marchés financiers (AMF) for violations of the Securities Act in connection with the distribution of Mount Real products, were recently found guilty on the charges.

Fayza Rifai fined $13,000

On December 16, 2010, Judge Claude Leblond of the Court of Québec found Fayza Rifai guilty on five charges: three charges of illegally pursuing activities as a securities dealer and two of aiding with an illegal distribution.

Judge Leblond ordered Fayza Rifai to pay fines totalling $13,000.

Jaime Lao Wan Lian fined $425,000

On December 6, 2010, Jaime Lao Wan Lian pleaded guilty to 83 charges before Judge Claude Parent of the Court of Québec, namely, 43 charges of illegally pursuing activities as a securities dealer or adviser, 33 charges of aiding with an illegal distribution and seven charges of making misrepresentations. Judge Parent imposed fines totalling $425,000 on Jaime Lao Wan Lian relating to the 83 charges brought against him by the AMF.

Francesco Iaconno fined $203,000

On December 6, 2010, Francesco Iaconno also appeared before Judge Claude Parent of the Court of Québec, and pleaded guilty to 40 charges: 21 charges of illegally pursuing activities as a securities dealer or adviser, 16 charges of aiding with an illegal distribution and three charges of making misrepresentations. Judge Parent imposed fines totalling $203,000 on Francesco Iaconno relating to the 40 charges brought against him by the AMF in the matter of Mount Real.

On the same day, before the same judge, Francesco Iaconno also pleaded guilty to six additional charges of illegal practice and aiding with an illegal distribution related to Norshield. Judge Parent imposed a further $31,500 in fines on Mr. Iaconno with respect to these six charges.

Nick Mylonakis pleads guilty

On November 22, 2010, before Judge Louise Villemure of the Court of Québec, Nick Mylonakis pleaded guilty to 22 charges: 10 charges of illegally pursuing activities as a securities dealer, 9 charges of aiding with an illegal distribution and three charges of making misrepresentations. Sentencing will take place on February 2, 2011.

On January 24, 2007, the AMF filed 619 charges against 24 individuals who acted as representatives in the matter of Mount Real Corporation and its subsidiaries. To date, 18 individuals (Victor Lacroix, Armando Ferruci, Christophe Balayer, Luigi Muro, Anthony Cappellano, Éric Couture, Larraine Lyttle, Yves Tardif, Guy Prescott, Carole Dorion, Sylvie St-Denis, Antonella Niro, Paul Quenneville, Jaime Lao Wan Lian, Francesco Iaconno, Fayza Rifai, René Proteau (awaiting sentencing) and Nick Mylonakis (awaiting sentencing) have been found guilty on 478 charges and fined $2,214,500.

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

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