Former Norbourg CEO convicted on 51 fraud charges

Lacroix founded Montreal-based investment fund.

Former Norbourg CEO Vincent Lacroix was found guilty of 51 fraud charges in Montreal today.

Quebec provincial court Judge Claude Leblond handed down the verdict.

Lacroix, the founder of the Montreal-based investment fund, was arrested in 2006 and charged with 51 counts of violating securities laws after his company was investigated by Quebec’s financial market regulator, the Autorité des marchés financiers.

The AMF had previously fined Norbourg on behalf of some 9,200 investors, who placed millions of dollars in the fund.

Twenty-four of the charges relate to Lacroix allegedly providing false or misleading information to investors, and 27 charges are connected to allegations he manipulated mutual funds.

A forensic audit in 2005-2006 revealed there was a $130 million gap in Norbourg’s accounting records.

Norbourg was placed in bankruptcy protection in October 2005.