Securities Decisions and Freeze and cease trade orders
Montréal – At the request of the Autorité des marchés financiers (AMF), the Bureau de décision et de révision en valeurs mobilières (BDRVM) has suspended the rights granted by registration to Les conseillers en valeurs Planiges inc. as an unrestricted securities adviser.
Les conseillers en valeurs Planiges inc.
Following various actions taken by the AMF, Denis Patry, president of ZENITH Management and Research Corporation and Conseillers Planiges has confirmed a number of issues raised by the AMF as a result of its investigation and has voluntarily stated that:
- as an adviser, he misappropriated $400,000 in connection with a private distribution that he himself solicited;
- as an adviser, he misappropriated assets under management in the amount of approximately $3,000,000 belonging to clients;
- he sent client account statements containing misrepresentations.
Moreover, at the request of the AMF, the BDRVM issued a freeze order on funds, securities or other assets against ZENITH Stable Value Growth Fund (the ZENITH Fund), as well as against ZENITH Management and Research Corporation (the Manager), Les conseillers en valeurs Planiges inc., Denis Patry and State Street Trust Company Canada. It also ordered the ZENITH Fund to cease any activity in respect of a transaction in securities.
Further to an investigation conducted by the AMF, which revealed that the Manager sent invoices to the ZENITH Fund and was paid approximately $1.5M by the Fund, the BDRVM issued a freeze order on June 15, 2005. It ordered the ZENITH Fund, the Manager, Les conseillers en valeurs Planiges inc. and Denis Patry not to withdraw funds belonging to the ZENITH Fund for the purpose of paying financial research expenses or professional fees in respect of consultations and Fund reorganization.
On June 30, 2004, the assets of the ZENITH Fund amounted to $12M compared with $6.5M on March 7, 2005. In addition to research expenses that were unaccounted for in the Fund, it is not known whether malversation or embezzlement has taken place. The investigation is continuing.
The AMF will soon determine the measures that have to be taken with respect to the ZENITH Fund and Les conseillers en valeurs Planiges inc.
The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.
Created under An Act respecting the Autorité des marchés financiers, the Bureau de décision et de révision en valeurs mobilières is an administrative tribunal that exercises powers prescribed by the Securities Act.
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Philippe Roy (514) 940-2176
Issuers, dealers, advisers and representatives: (877) 525-0337, dial 9 for English, then choose option 1 for industry
Consumers and investors: (877) 525-0337, dial 9 for English, then choose option 2 for consumers
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