Montréal – The Autorité des marchés financiers (AMF) has launched penal proceedings against Zaineb Darkaoui in the Court of Québec, district of Montréal, and is seeking fines totalling $48,000 for acting illegally as an independent damage insurance and misappropriating funds remitted as payment for insurance premiums by some of her clients.

The AMF filed 11 charges against Zaineb Darkaoui for acting as a damage insurance broker while not attached to any firm or registered as a representative, and is seeking fines of $38,000. Following her dismissal in July 2009, at which time she no longer held the appropriate authorizations to do so, Zaineb Darkaoui offered damage insurance products, namely, car or home insurance policies, to at least 10 individuals.

Ms. Darkaoui also faces two other charges for making misrepresentations to clients while pursuing activities governed by An Act respecting the distribution of financial products and services. Specifically, the AMF charged her with informing clients that they were duly insured, whereas they had not received any policy and, in fact, Ms. Darkaoui had misappropriated the insurance premiums they had paid her.

The AMF is seeking $10,000 in fines in connection with these two charges. The AMF is seeking fines that are double the minimum fines prescribed under the Act for general deterrence purposes, exemplary reasons and due to the misappropriation of funds.

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

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