September 10, 2019 09:30
Michel Desroches and Fernando Charest are sentenced to terms of imprisonment of 18 months each, in addition to be hit by fines of $ 340,000 and 202 000 $, respectively. Their businesses 9219-8050 Quebec inc. and 9279-7745 Quebec inc. also receive each of the fines of 70 000 $ and 45 000 $. The defendants have appealed the decision.
Following a criminal prosecution of thefinancial markets Authority, the respondents have pleaded guilty to 171 counts of the indictment, of which 105 related to the support of the placement without a prospectus and a 66-year-illegal activity as a securities dealer. The breaches violate the securities Act.
The investigation conducted by the regulator showed that MESSRS. Desroches and Charest have called for investors to join a club of private investment. A total of 431 200 $ has been invested not 24 investors. A party has been reimbursed by the respondents, indicates the Authority.
The judge Gilles Lafrenière of the Court of Québec, district of Drummondville, has pointed out that the fact that offences are “objectively serious” and the fact that they were conducted over more than two years old are ” aggravating factors “. “He also pointed out that the defendants have acted with full knowledge of the facts, abused the confidence of the investors and were not aware of their responsibility,” stresses the Authority by way of a press release.
The defendants have already received sentences of detention to be served in the community of 15 months for Mr. Desroches and 24 months less a day for Mr. Charest, ” for offences of an economic nature “, says the regulator.