Last updated: March 5, 2026
Published: October 11, 2007
Decisions and Freeze and cease trade ordersSecurities

Montréal – In a decision handed down on September 24, 2007, Judge Michel A. Pinsonnault of the Court of Québec (Civil Division), district of Montréal, dismissed an appeal filed by Paul Gagné and TIP Investment Advisors Ltd. and allowed an appeal filed by the Autorité des marchés financiers (AMF). The rights granted by registration to Paul Gagné and TIP Investment Advisors Ltd. are therefore withdrawn permanently.

Paul Gagné and TIP Investment Advisors Ltd. were appealing a decision issued on January 30, 2004 by the Québec securities commission (the Commission des valeurs mobilières du Québec, or CVMQ) whereby it was determined that they did not have the competence and integrity as required under section 151 of the Securities Act (the “Act”) to ensure the protection of investors.

On April 21, 2004, the Bureau de décision et de révision en valeurs mobilières (BDRVM) suspended the rights granted by registration to Paul Gagné and TIP Investment Advisors Ltd. for a period of five years. The AMF was appealing BDRVM’s decision. It argued that the penalty was unreasonable and that the BDRVM ought to have permanently withdrawn the rights granted by registration to Paul Gagné and TIP Investment Advisors Ltd. and not temporarily suspend the rights for a period of five years.

In his decision, the Judge stated that “[translation] in the current economic context where the financial markets in Québec, Canada and elsewhere have been rocked by numerous scandals, the BDRVM could not reasonably ignore the importance of a harsh penalty and its deterrent character for maintaining confidence.” He added: “The acts committed by Paul Gagné and TIP Investment Advisors as well as their conduct, including during the investigations, clearly demonstrate that, with respect to the management of funds collected from investors who placed their trust in them, they are a real risk to the financial market and must be permanently struck off the roll to ensure the protection of investors and maintain the confidence of the public in the securities market.” As well, the Judge stated that “without the confidence of investors in the integrity of the financial markets, the entire economy is impacted. This confidence is maintained by agencies that oversee the financial markets, such as the AMF, by ensuring that persons who abuse such confidence to the detriment of investors and the integrity of the financial markets are prevented from practicing.

On November 27, 2006, the AMF launched penal proceedings before the Court of Québec against Paul Gagné. It was alleged that he withdrew funds belonging to TIP Funds Canada Ltd. that were held in deposit at the Royal Bank of Canada, thereby violating a CVMQ decision that ordered him not to do so. The AMF is seeking a total fine in the amount of $20,000.

Update

On August 25, 2008, the Court of Appeal of Quebec partially allowed the appeal filed by Paul Gagné and partially dismissed the judgment issued by the Honourable Michel A. Pinsonneault for the sole purpose of dismissing the appeal filed by the AMF with the Court of Québec and reinstating the five-year suspension imposed by the BDRVM. The application filed by Paul Gagné for leave to appeal to the Supreme Court was dismissed. Paul Gagné filed an application for revocation of the judgment issued by the Court of Appeal of Quebec on August 25, 2008, which was dismissed on October 10, 2017. The Supreme Court dismissed the application for leave to appeal the decision.

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

— 30 —

Information:

Media only:
Frédéric Alberro (514) 940-2176

Information Centre: (877) 525-0337

Additional news