Montréal, May 11, 2011 - The Autorité des marchés financiers (the AMF) has launched penal proceedings in the judicial districts of Montréal, Québec City, Terrebonne and Laval against seven individuals and three companies for violations in connection with illegal distributions by Ressources minières Andréane, HE-5 Resources and Minéraux Izza inc. The AMF filed 260 charges and is seeking fines totalling $2,824,000.
Montréal proceedings - Fines totalling $1,560,000
More specifically, the AMF has launched the first proceeding in the district of Montréal against Serge Ollu, Andrea Cortellazzi, Denyse Raynault, Jacques Vallée,1 Ressources minières Andréane, HE-5 Resources and Minéraux Izza inc. Serge Ollu and Andrea Cortellazzi (president of Ressources minières Andréane and director of Minéraux Izza inc.) were respectively charged with 33 and 6 counts for illegally pursuing activities as a dealer and aiding with illegal distributions. Fines totalling $404,000 and $56,000 against them respectively are being sought.
In the same proceeding, Denyse Raynault, spouse of Serge Ollu and director of Ressources minières Andréane, Minéraux Izza inc., and HE-5 Resources, and Jacques Vallée, director of Minéraux Izza inc., were respectively charged with 36 and 8 counts for aiding with illegal distributions. Fines totalling $360,000 and $80,000 against them respectively are being sought.
Accusations of illegal distributions were also filed against Ressources minières Andréane (16 counts and $320,000 in fines), HE-5 Resources (24 counts and $240,000 in fines) and Minéraux Izza inc. (10 counts and $100,000 in fines).
Proceedings in the Québec City region - Fines totalling $836,000 being sought
In the Québec City region, the AMF filed a lawsuit against Guy Drouin,2 former president of Ressources minières Andréane, and against Ressources minières Andréane. Guy Drouin was charged with 26 counts of aiding with illegal distributions, 8 counts of illegally pursuing activities as a dealer and one count for stating that securities would be listed on the stock exchange. Fines totalling $556,000 are being sought.
Ressources minières Andréane was charged with 14 counts of illegal distributions and fines totalling $280,000 are being sought.
Guy Drouin was the subject of another proceeding launched by the AMF in July 2009 for aiding Gestion Nali inc. and Gestion Lactée inc. with illegal distributions. Fines totalling $20,000 are being sought against him.
Proceedings in the Terrebonne and Laval regions
The AMF also launched proceedings in the Terrebonne and Laval districts against Guy Bégin and Marie-Hélène Frigon, who were respectively charged with 41 and 37 counts for aiding with illegal distributions, illegally pursuing activities as a dealer and stating that securities would be listed on the stock exchange. Fines totalling $226,000 and $202,000 against them respectively are being sought.
The AMF's investigation shows that 53 investors had invested a total of $1,823,961 with these seven individuals. This amount has been almost entirely lost.
Note that on October 8, 2008, the Bureau de décision et de révision en valeurs mobilières issued a freeze order against Ressources minières Andréane and ordered Ressources minières Andréane, Minéraux Izza inc., HE-5 Resources, Denyse Raynault, Jacques Vallée, Serge Ollu, Yves Renaud and Marie-Hélène Frigon to cease any activity in respect of a transaction in securities.
The Autorité des marchés financiers ("AMF") is the regulatory and oversight body for Québec's financial industry.
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Sylvain Théberge: 514-940-2176
Québec City: 418-525-0337
1 Respondent Jacques Vallée should not be confused with Jacques Vallée of Sun Life Financial Distributors (Canada) Inc. and Sun Life Financial Investment Services (Canada) Inc. in Brossard, holder of certificate nos. 133788 and 1767581 (NRD), nor with Jacques Vallée attached to National Bank Financial in Laval, holder of certificate No. 62251 (NRD).