October 30, 2008 Securities

Montréal – The Autorité des marchés financiers (AMF) has launched penal proceedings against O de mer propulsion inc., Jacques Savoie, Gérard Nolet, Jean-François Laroche, Jean-Louis Poirier and  Bissonnette in the Court of Québec (Criminal and Penal Division), district of Québec City. The AMF is also seeking fines totalling $3,830,000 and a prison term.

In its suit against O de mer  inc., the AMF has filed 119 charges and is seeking $1,785,000 in fines, which is three times the minimum penalty set out under the Securities Act ( "Act"), for:

• distributing a form of investment governed by the Act without a prospectus approved by the AMF, thereby violating  11 of the Act.

In its suit against Jacques Savoie, the AMF has filed 114 charges and is seeking $1,530,000 in fines, which is three times the minimum penalty set out under the Act, for:

• acting as a dealer without being registered as such with the AMF, thereby violating section 148 of the Act (13 charges);
• distributing a form of investment governed by the Act without a prospectus approved by the AMF, thereby violating section 11 of the Act (2 charges);
• aiding, by act or omission, O de mer propulsion inc. with the distribution of a form of investment governed by the Act without a prospectus approved by the AMF, thereby violating sections 11 and 208 of the Act (97 charges);
• giving an undertaking relating to the future value of a security, thereby violating section 199 of the Act (2 charges).

In its suit against Gérard Nolet, the AMF has filed 69 charges and is seeking fines totalling $219,000, which is three times the minimum penalty set out under the Act, for:

• acting as a dealer without being registered as such with the AMF, thereby violating section 148 of the Act (63 charges);
• aiding, by act or omission, O de mer propulsion inc. with the distribution of a form of investment governed by the Act without a prospectus approved by the AMF, thereby violating sections 11 and 208 of the Act (1 charge);
• giving an undertaking relating to the future value of a security, thereby violating section 199 of the Act (5 charges).

As for Jean-François Laroche, he faces 36 charges, and the AMF is seeking a prison term of up to five years less one day and fines totalling $200,000, which is five times the minimum penalty set out under the Act, for:

• acting as a dealer without being registered as such with the AMF, thereby violating section 148 of the Act (30 charges);
• aiding, by act or omission, O de mer propulsion inc. with the distribution of a form of investment governed by the Act without a prospectus approved by the AMF, thereby violating sections 11 and 208 of the Act (1 charge);
• giving an undertaking relating to the future value of a security, thereby violating section 199 of the Act (5 charges).

As well, 86 charges were brought against Jean-François Laroche in June 2007 in the matter of Cogetax. A cease trade order was issued against him on February 10, 2006 with respect to the same matter.

In its suit against Jean-Louis Poirier, the AMF has filed 4 charges and is seeking fines totalling $48,000, which is three times the minimum penalty set out under the Act, for:

• acting as a dealer without being registered as such with the AMF, thereby violating section 148 of the Act (1 charge);
• distributing a form of investment governed by the Act without a prospectus approved by the AMF, thereby violating section 11 of the Act (1 charge);
• aiding, by act or omission, O de mer propulsion inc. with the distribution of a form of investment governed by the Act without a prospectus approved by the AMF, thereby violating sections 11 and 208 of the Act (2 charges).

And in its suit against Luc Bissonnette, the AMF has filed 4 charges and is seeking fines totalling $48,000, which is three times the minimum penalty set out under the Act, for:

• acting as a dealer without being registered as such with the AMF, thereby violating section 148 of the Act (1 charge);
• aiding, by act or omission, O de mer propulsion inc. with the distribution of a form of investment governed by the Act without a prospectus approved by the AMF, thereby violating sections 11 and 208 of the Act (3 charges).

On July 14, 2008, the Bureau de décision et de révision en valeurs mobilières (BDRVM) issued a freeze and cease trade order against the accused. The order is still in effect.

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

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