Illegal distributionsVéhicules Nemo inc. - AMF files 260 charges and seeks more than $3 million in fines

Securities

Montréal – The Autorité des marchés financiers (AMF) has launched penal proceedings against Jacques Rancourt, The respondent Jacques Rancourt should not be confused with the independent financial planning representative, Jacques Rancourt of Rosemère, who holds certificate No. 135 213 and who is not affected by this suit. Guylain Pelletier, Michel Noreau and Véhicules Nemo inc. and is seeking fines totalling $3,228,000 in connection with these suits.

Jacques Rancourt faces 104 charges

Jacques Rancourt, who held the positions of president, director, CEO and, subsequently, chief operating officer of Véhicules Nemo inc., faces 104 charges in respect of which the AMF is seeking $1,530,000 in fines. The AMF alleges that he aided Véhicules Nemo inc. in making illegal distributions and acted illegally as a securities dealer on 49 occasions.

The AMF further alleges that he informed certain investors on four occasions that the security of Véhicules Nemo inc. would be listed on an exchange. Lastly, Jacques Rancourt faces two charges of contravening an undertaking entered into with the AMF.

With respect to these last two charges, the AMF is seeking the maximum fine. For the remaining 102 charges, the AMF is seeking fines that are five times the minimum fine set out in the Act. The AMF took into account the duration of the offences, the integrity of the financial markets, the losses suffered by investors and the subjective seriousness of the offences as aggravating factors.

Véhicules Nemo inc. faces 109 charges

Véhicules Nemo inc., which was incorporated in 2000 and specializes in the manufacture of electric pick-ups, faces 109 charges in respect of which the AMF is seeking $1,104,000 in fines.

The AMF alleges that the company made illegal distributions and illegally acted as a securities dealer on 53 occasions. The company also faces three charges for contravening an undertaking entered into with the AMF.

With respect to these last three charges, the AMF is seeking the maximum fine. For the remaining 106 charges, the AMF is seeking fines that are three times the minimum fine set out in the Act. The AMF took into account the duration of the offences, the integrity of the financial markets and the losses suffered by investors as aggravating factors.

Guylain Pelletier, president of Véhicules Nemo inc., faces 35 charges

Guylain Pelletier, the current president of Véhicules Nemo inc., who also held the positions of director and secretary, faces 35 charges in respect of which the AMF is seeking $530,000 in fines.

The AMF has charged him with aiding Véhicules Nemo inc. in making 34 illegal distributions and with contravening an undertaking entered into with the AMF.

The AMF is seeking the maximum fine in respect of this last charge, and fines that are three times the minimum fine set out in the Act in respect of the other 34 charges. The AMF took into account the duration of the offences, the integrity of the financial markets and the losses suffered by investors as aggravating factors.

Michel Noreau faces 12 charges

Michel Noreau, a director of Véhicules Nemo inc., faces 12 charges in respect of which the AMF is seeking $64,000 in fines. The AMF alleges that he aided Véhicules Nemo inc. in making illegal distributions and illegally acted as a securities dealer on five occasions. The AMF further alleges that he informed certain investors on two occasions that the security of Véhicules Nemo inc. would be listed on an exchange.

The AMF is seeking fines that are twice the minimum fine set out in the Act for all of these charges.

The AMF investigation showed that 167 investors invested just over $4 million in Véhicules Nemo inc.

On June 17, 2010, at the request of the AMF, the Bureau de décision et de révision (the “Bureau”) issued freeze and cease trade orders in connection with the activities of Véhicules Nemo inc. In its request, the AMF sought quick intervention by the Bureau because a special shareholders’ meeting had been called for the purpose of approving the sale of the company’s assets to Alternative Green Technologies Inc. The issues raised by the AMF at the Bureau hearing were considered to be wellfounded.

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

— 30 —

Information:

Media only:
Sylvain Théberge: 514-940-2176

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

Additional news