Supreme Court appeal by André Lacelle dismissed

Decisions and Freeze and cease trade orders Insurance

Montréal– In a decision handed down on January 31, 2008, the Supreme Court of Canada dismissed the application for leave to appeal filed by André Lacelle against a judgment ordering him to pay $85,306.81 plus interest, and an additional indemnity, to the Fonds d’indemnisation des services financiers (the "financial services compensation fund") managed by the Autorité des marchés financiers (AMF).

This decision is further to the subrogatory action launched by the AMF on September 5, 2003 in Québec Superior Court against André Lacelle subsequent to the decision of the compensation fund with respect to Marché Mevlana inc. and the numerous contestations filed by Mr. Lacelle.

In March 2001, Marché Mevlana inc. submitted a claim to the compensation fund because it had been informed, following a claim made to its insurers, that they had never received the premium payment and there was no evidence that the risk had been underwritten or that a policy had been issued. After reviewing the matter, the compensation fund allowed the claim and paid $85,306.81 in compensation to the claimant for the direct damages incurred as a result of the fraudulent tactics of André Lacelle. Contestations by André Lacelle ensued, all of which were dismissed by the Superior Court and the Court of Appeal.

On February 7, 2007, the compensation fund, subrogated in the rights of the victim, obtained a Superior Court judgment whereby it was concluded that Marché Mevlana inc. had been the victim of fraud and André Lacelle was held personally liable and he was ordered to pay $85,306.81 plus interest, and an additional indemnity, to the fund. André Lacelle repeatedly attempted, unsuccessfully, to appeal the decision. Again, on January 31, 2008, the Supreme Court of Canada dismissed André Lacelle's application for leave to appeal. To date, over $100,000 is owing to the compensation fund, and procedures to execute the judgment have been undertaken. Six other claimants have been indemnified by the compensation fund for damages incurred subsequent to ethical breaches committed by André Lacelle. As a result, the fund has paid a total of $151,900 to the six other claimants and to Marché Mevlana inc. for losses incurred.

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

— 30 —


Media only:
Frédéric Alberro (514) 940-2176

Information Centre:
Québec City: 418-525-0337
Montréal: 514-395-0337
Toll-free: 1-877-525-0337