Productions Action Motivation inc. - AMF obtains first disgorgement order
Decisions and Freeze and cease trade orders Securities
Montréal – At the request of the Autorité des marchés financiers (the "AMF"), the Bureau de décision et de révision en valeurs mobilières (BDRVM) issued its first disgorgement order on January 6, 2010. The order was issued in the matter of Productions Action Motivation inc.
Disgorging funds was introduced in the Securities Act in May 2008 further to the findings of the Parliamentary commission that looked into the predicament of investors who had been defrauded as a result of illegal activities. The measure is intended to deprive a person of the profit realized as a result of non-compliance with securities legislation.
On January 6, 2010, the BDRVM therefore ordered that a portion of the securities held in the brokerage account of Productions Action Motivation inc. be sold and that the proceeds be disgorged to the AMF. The disgorgement order was issued following evidence submitted by the AMF whereby Yvon Charbonneau, president of Productions Action Motivation inc., violated the Securities Act, raised funds from investors through these violations and the funds held in the brokerage account of Productions Action Motivation inc. derive from investors.
In its decision, the BDRVM noted that although the value of the securities remaining in the account is paltry compared with the amounts raised by the promoters through the illegal distribution, the decision reflects the importance of the principle as well as any amount of funds recovered.
In April 2004, the BDRVM had initially issued cease trade orders and freeze orders against Productions Action Motivation inc., its president Yvon Charbonneau and its representative André Cloutier. A partial lifting of the freeze was authorized in July 2006 in respect of an investor who had been defrauded in this matter, thereby enabling the enforcement of a decision by the Court of Québec (Small Claims). In January 2009, Yvon Charbonneau was found guilty on six charges related to illegal distributions and was fined $30,000.
The funds disgorged in this matter will be earmarked for the Education and Good Governance Fund. Since its establishment in 2004, the Fund has contributed over $7 million in support of 60 projects designed to educate and protect investors, promote corporate governance and enhance consumers' knowledge of financial products and services.
The Autorité des marchés financiers ("AMF") is the regulatory and oversight body for Québec's financial sector.
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