Perfolio and Investissements SPA inc. - AMF appeals decision by Judge Godbout

Securities

Montréal – The Autorité des marchés financiers (AMF) is appealing the decision handed down on November 8, 2010 by Judge Bernard Godbout of the Court of Québec related to the compensation of investors in the matter of Norbourg who were dealing with the firm Investissements SPA inc. at the time of purchasing Perfolio funds.

The AMF is fully aware of the inconvenience this appeal may cause for the defrauded investors. However, the AMF conducted a thorough and in-depth analysis of Judge Godbout’s decision, considering its impact on the role and the jurisdiction of the Fonds d’indemnisation des services financiers (“Compensation Fund”). The repercussions of this decision extend beyond the matter of Norbourg, and it is important that the Court of Appeal be able to examine them.

The AMF considers, in particular, that Judge Godbout’s conclusions distort the legislator’s intent. They allow for compensation following a fraud committed by a fund manager who does not pay into the Compensation Fund but holds shares of a distribution firm which did not commit any offence.

The AMF is also requesting that the Court of Appeal overturn the conclusions of the judgment which state that the AMF must prove the fraud alleged by a person who files a claim with the Compensation Fund.

In addition, the AMF submits that Judge Godbout erred in law as part of an action in nullity by allowing the administration of new evidence, namely, the testimony of Vincent Lacroix. Furthermore, Vincent Lacroix presented a version to which the AMF did not have access at the time of its decision, this version having been given following Vincent Lacroix’s conviction on penal and criminal charges.

The appeal filed by the AMF in the Court of Appeal is available 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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