Quebec regulator seeks cash from people in Norbourg case

Date: Wednesday, July 9, 2008
Author: James Langton, Investment Executive

The Autorité des marchés financiers says it is seeking to recover almost $32 million from various people and firms involved with the sales of Norbourg funds.

The AMF has launched a suit for $31,804,132.21 against the principal parties involved in the distribution of Norbourg funds, including, the firm’s founder Vincent Lacroix, Norbourg Groupe Financier inc., the mutual fund firms Groupe Futur inc. and Norbourg Capital Inc. as well as a number of representatives attached to the firms. In January 2007, the AMF announced that it found that fraudulent tactics had been used in the distribution of Norbourg funds.

The regulator said it believes the reps “bore professional responsibility by accepting various incentives and placing their personal interests ahead of client interests in connection with the distribution of Norbourg funds. At one time or another, they received benefits or unexplained and sometimes substantial cash amounts, in addition to their usual compensation or the sale of their assets.”

Any amounts recovered will be earmarked for the financial services compensation fund. The AMF said that 886 investors have been awarded compensation.