Decisions and Freeze and cease trade orders Securities

Montréal – Judges André Forget, Pierre J. Dalphond and Allan R. Hilton of the Québec Court of Appeal, district of Montréal, issued a decision on August 25, 2008 in which they dismissed the appeal by Paul Gagné for lack of competence and integrity, but upheld the five-year suspension imposed against him by the Bureau de décision et de révision en valeurs mobilières (BDRVM) on April 21, 2004, thereby partly reversing a decision handed down on September 24, 2007 by Judge Michel A. Pinsonnault of the Court of Québec.

In fall 2007, Paul Gagné filed an appeal to reverse the conviction and sentence imposed by Judge Michel A. Pinsonnault. On August 25, 2008, the presiding Court of Appeal judges dismissed the appeal and upheld the five-year suspension of the rights granted by registration to Paul Gagné as an unrestricted securities adviser, namely, the sentence initially imposed by the BDRVM on April 21, 2004.

On September 24, 2007, Judge Michel A. Pinsonnault of the Court of Québec (Civil Division) dismissed an initial appeal filed by Paul Gagné and TIP Investment Advisors Ltd. contesting a decision issued by the BDRVM whereby it was determined that they did not have the competence or the integrity to ensure the protection of investors. Judge Pinsonnault did however allow the appeal filed by the Autorité des marchés financiers (AMF), which argued that the five-year suspension was unreasonable and that the BDRVM ought to have permanently withdrawn the rights granted by registration to Paul Gagné.

On November 27, 2006, the AMF launched penal proceedings in the Court of Québec against Paul Gagné, who allegedly contravened a decision of the regulatory authority imposed on July 3, 2002 ordering him not to withdraw funds belonging to TIP Funds Canada Ltd. The AMF is seeking a total fine of $20,000 in this matter.

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

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