Mount Real Corporation - Provisional administrator appointed, freeze and cease trading orders issued
Securities Decisions and Freeze and cease trade orders
Montréal – At the request of the Autorité des marchés financiers (AMF) and further to the recommendation of the Bureau de décision et de révision en valeurs mobilières (BDRVM), the Québec Finance Minister has appointed, M. Jean Robillard, of the Raymond, Chabot, Grant, Thornton, as the provisional administrator to administer the assets of Mount Real Corporation, Valeurs mobilières iForum and Services financiers iForum.
Moreover, at the request of the AMF, the BDRVM issued freeze and cease trading orders against the targeted entities and related companies (Gestion MRACS ltée, Real Vest Investments Ltd, Real Assurance Acceptance Corporation) and a number of directors (Lino P. Matteo, Laurence Henry, Joseph Pettinicchio, Andris E. Spura, Paul D’Andrea, Laraine Lyttle and Lowell Holden). These are conservatory measures intended to protect investors.
Based on the information gathered, the AMF has serious reservations regarding the actual value of the securities guaranteed by Mount Real Corporation and its related companies in the amount of $65 million. In addition, fifteen complaints have been filed to date with the AMF by investors who claim they have been unable to obtain their interest on these notes or their principal.
In its decision, the BDRVM stated that "[translation] the allegations made by the AMF are all serious and appear to indicate that the situation involves a well-structured, multifaceted organization for whom compliance with the law and respect for basic rules of securities investments are not a priority."
In June 2005, the AMF announced that an investigation into the financial operations of Mount Real Corporation was under way. Furthermore, the AMF is seeking to establish the nature of the relationships between Mount Real Corporation and Norshield. Also last June, a receiver was appointed in the Norshield matter in co-operation with the Ontario Securities Commission.
The AMF is continuing with its investigation to identify the role played by each person connected to the many offences that have been uncovered and to determine whether any penal proceedings will be launched.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
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