Prépayé ICP - Intercontinental inc. - AMF files 331 charges and seeks fines totalling $3,525,000

Securities

Montréal – The Autorité des marchés financiers (AMF) has launched penal proceedings against Pierre Verreault, François Ledoux, Jacques Allard, William Thompson, Jacques Lévis, Carmel Yargeau as well as Groupe Krypton inc. and Krypton Imagination inc. in the Court of Québec (Criminal and Penal Division) and is seeking fines totalling $3,525,000.

In its suit against Pierre Verreault, the AMF is filing 164 charges and is seeking $1,740,000 in fines for:

  • acting as a dealer without being registered as such with the regulatory authority, thereby violating section 148 of the Securities Act (the "Act") (60 charges);
  • aiding, by act or omission, Prépayé ICP – Intercontinental inc, Groupe Krypton  nc. and Krypton Imagination inc. with the distribution of a form of investment governed by the Act without a prospectus approved by the regulatory authority, thereby violating sections 11 and 208 of the Act (104 charges).

In its suit against François Ledoux, the AMF is filing 68 charges and is seeking $600,000 in fines for:

  • acting as a dealer without being registered as such with the regulatory authority, thereby violating section 148 of the Act (35 charges);
  • aiding, by act or omission, Prépayé ICP – Intercontinental inc and Groupe Krypton inc. with the distribution of a form of investment governed by the Act without a prospectus approved by the regulatory authority, thereby violating sections 11 and 208 of the Act (33 charges).

Jacques Allard is facing 20 charges and a fine totalling $180,000 for:

  • acting as a dealer without being registered as such with the regulatory authority, thereby violating section 148 of the Act (10 charges);
  • aiding, by act or omission, Prépayé ICP – Intercontinental inc and Groupe Krypton inc. with the distribution of a form of investment governed by the Act without a prospectus approved by the regulatory authority, thereby violating sections 11 and 208 of the Act (10 charges).

With respect to William Thompson, the AMF has filed 18 charges and is seeking a fine in the amount of $162,000 for:

  • acting as a dealer without being registered as such with the regulatory authority, thereby violating section 148 of the Act (9 charges);
  • aiding, by act or omission, Prépayé ICP – Intercontinental inc. with the distribution of a form of investment governed by the Act without a prospectus approved by the regulatory authority, thereby violating sections 11 and 208 of the Act (9 charges).

In its suit against Jacques Lévis, the AMF has filed 6 charges and is seeking a fine in the amount of $54,000 for:

  • acting as a dealer without being registered as such with the regulatory authority, thereby violating section 148 of the Act (3 charges);
  • aiding, by act or omission, Prépayé ICP – Intercontinental inc. with the distribution of a form of investment governed by the Act without a prospectus approved by the regulatory authority, thereby violating sections 11 and 208 of the Act (3 charges).

With respect to Carmel Yargeau, the AMF has filed 6 charges and is seeking a fine in the amount of $54,000 for:

  • acting as a dealer without being registered as such with the regulatory authority, thereby violating section 148 of the Act (3 charges);
  • aiding, by act or omission, Prépayé ICP – Intercontinental inc. with the distribution of a form of investment governed by the Act without a prospectus approved by the regulatory authority, thereby violating sections 11 and 208 of the Act (3 charges).

Groupe Krypton inc. is facing 48 charges and a fine totalling $720,000 for:

  • distributing a form of investment governed by the Act without a prospectus approved by the regulatory authority, thereby violating section 11 of the Act.

Finally, the AMF has filed one charge against Krypton Imagination inc. and is seeking a fine in the amount of $15,000 for:

  • distributing a form of investment governed by the Act without a prospectus approved by the regulatory authority, thereby violating section 11 of the Act.

The AMF is seeking fines exceeding the minimum fines set out in the Act for deterrence purposes, the protection of investors and exemplary reasons. The AMF has also considered the amount of losses sustained by investors in seeking fines.

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

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