Penal Conviction against Benoît Laliberté in matter of Jitec - AMF appeals verdict against Benoît Laliberté

Securities

Montréal – The Autorité des marchés financiers (AMF) has filed an appeal of the decision handed down on February 21, 2008 by Judge Céline Lacerte-Lamontagne in the Court of Québec. Under the decision, Benoît Laliberté was found guilty on 41 counts and acquitted of seven counts brought against him by the AMF.

The AMF conducted a thorough and detailed analysis of the decision by Judge Lacerte-Lamontagne and decided to appeal four of the seven acquittals.

Specifically, the AMF seeks to appeal the acquittal in respect of three charges related to the requirement by insiders to report transactions within the time period prescribed by law. The AMF is also appealing the acquittal in respect of misrepresentations in a press release.

On February 21, 2008, Judge Lacerte-Lamontagne found Benoît Laliberté guilty of violating the  Act (the "Act"):

  • for failing to file a report disclosing a change in his control over the securities of a reporting issuer, namely,  Inc., thereby violating section 97 of the Act (30 counts);
  • for insider trading in the securities of Jitec Inc. while having privileged information about the company, thereby violating  187 of the Act (4 counts);
  • for assisting Jitec Inc. in making a misrepresentation in press releases that could affect the market value or price of the company's securities, thereby violating section 196 of the Act (2 counts);
  • for making a misrepresentation in connection with a transaction relating to securities by promising investors, at the time they purchased shares of  Inc., that contracts worth millions of dollars had been or would soon be signed by  Inc. and another company, thereby violating  197 of the Act (4 counts); and
  • for giving an undertaking relating to the future value or price of the securities of  Inc. in connection with a transaction relating to the securities of the company, thereby violating section 199 of the Act (1 count).

As well, on July 31, 2008, Judge Céline Lacerte-Lamontagne ordered Benoît Laliberté to pay fines totalling almost $900,000 plus costs.

The appeal notice filed by the AMF in the Superior Court is posted on the AMF website under "News".

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

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