April 7, 2017 Securities Decisions and Freeze and cease trade orders Investor warnings - News

Montréal – On February 2, 2017, Judge Dominique B. Joly of the Court of Québec, district of Montréal, imposed fines totalling $676,200 on Richard Tremblay and André Mailloux for illegal practice as securities dealers.

This decision is further to penal proceedings launched by the Autorité des marchés financiers (the “AMF”) in 2011. Richard Tremblay was facing 29 charges, namely 11 counts of aiding in making a distribution without a prospectus, nine counts of illegal practice as a securities dealer, four counts for stating that securities would be listed on an exchange or that an application had been made to that end, three counts for guaranteeing the future value or price of securities and two counts for having included the word “trust” in the name of a company although it wasn’t a licensed trust company.

André Mailloux faced 17 charges, namely six counts of aiding in making a distribution without a prospectus, six counts of illegal practice as a securities dealer, three counts for stating that securities would be listed on an exchange or that an application had been made to that end and two counts for guaranteeing the future value or price of securities.

Richard Tremblay and André Mailloux both pleaded guilty to all charges brought against them. Following a joint recommendation of the parties, Judge Joly imposed fines of $516,200 on Richard Tremblay and $160,000 on André Mailloux.

Warning to the public

New information recently obtained by the AMF indicates that Richard Tremblay and André Mailloux are reportedly promoting their new company named Corporation de Capital Swap inc.

Until very recently, this entity’s website purported it was an investment and advisory firm.

The AMF would like to point out the following: Richard Tremblay has been under a cease trade order since 2009; Richard Tremblay and André Mailloux are not registered with the AMF in any capacity whatsoever; and Corporation de Capital Swap inc. has not prepared a prospectus for approval by the AMF or been granted an exemption.

Anyone who was solicited by these individuals is asked to contact the AMF.

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

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