Civil or Criminal Actions against companies or regulators

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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Tue May 03, 2011 9:15 am


(photo not related to case described, illustrative only)

Justice Binnie observed that “protracted litigation has become the sport of kings in the sense that only kings or equivalent can afford it. Those who inflict it on others in the hope of significant personal gain and fail can generally expect adverse cost consequences.”

Case Name:
Kerr v. Danier Leather Inc.

Douglas Kerr, S. Grace Kerr and James Frederick Durst,
Danier Leather Inc., Jeffrey Wortsman and Bryan Tatoff,
Respondents, and
Ontario Securities Commission, Intervener.

[2007] S.C.J. No. 44
2007 SCC 44.
File No.: 31321.

Supreme Court of Canada

Heard: March 20, 2007;
Judgment: October 12, 2007.

The quote "has become the sport of Kings" from Justice Binnie above is interesting in what it says about our legal system in Canada. It has become well known that the layers of "protection" for people who cause financial violence against the vulnerable are just getting better for the financial violators.

They most often cannot be brought to justice by regulators since the regulators are chosen and paid by the financial violators themselves. Self regulators are simply worse, and have no duty to care for the public interest. Police have neither the time, nor the talent to deal with financial violation. (RCMP IMET budget $17 mil for entire country) This leaves the civil court process to level the playing field for the population, and this "sport of kings" insight is fair comment by Justice Binnie. It coincides with candid commentary by Chief Justice Beverley McLaughlin, saying that monopoly powers granted to the legal profession may be misused for the benefit of the profession rather than the benefit of the public.)
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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Fri Apr 29, 2011 7:50 pm

Screen shot 2011-04-29 at 8.50.17 PM.png


Immunity of Commission and officers
141. (1) No action or other proceeding for damages shall be instituted against the Commission or any member thereof, or any employee or agent of the Commission for any act done in good faith in the performance or intended performance of any duty or in the exercise or the intended exercise of any power under Ontario securities law, or for any neglect or default in the performance or exercise in good faith of such duty or power. R.S.O. 1990, c. S.5, s. 141 (1); 1994, c. 11, s. 377 (1).

(with a track record consisting of thousands of examples where the public has been damaged while benefitting the industry, and the regulator.......I believe that proof of "bad faith", or gross negligence, or even conscious wrongdoing on the part of securities regulators is simply a matter of time, the right lawyer, and the right claimant or class of claimants.)

If you are aware of a law firm who might look at a case where damages could go into ten figures I would like to be put in touch with this firm regarding a potential class action. please contact me at

If you are an industry participant with evidence of conscious wrongdoing and damage to the public interest by securites regulators or self regulators, pelase forward in confidence to

Public Interest Leaks

Suite 309,
440-10816 Macleod Trail SE
Willow Park Village
Calgary, Alberta T2J 5N8
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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Wed Apr 27, 2011 11:38 pm


First (of three points) was a Calgary Herald story recently about the ASC levying fines and penalties against various securities violators. Two items overlooked in the story: First being that most ASC fines are simply Public Relations exercises and are all too often not collected, and second, that whenever they are collected the ASC KEEPS the money for itself, rather than making sure that the people who were abused get anything.

This is a failure of ethical as well as professional practices on the part of the ASC.

Second is information available on approximately 5000 examples of "decisions" made by the ASC to grant exemptions to our securities laws to investment firms. Firms including Goldman Sachs as well as thousands of others, who have used these special permissions to take advantage of a trusting and vulnerable public. These have damaged Albertans by billions. (Asset Backed Commercial paper sold here being just one single example that cost billions)

These exemptions are usually done in private, between the investment firm and the commission, (which is paid by the investment firms), and it makes one wonder why there is no public notice to those unfortunate consumers who end up owning tainted products or advice.

Today, an article about WEALTHSTREET INC doing public investment seminars for twenty years. The Calgary Herald's article says that the ASC claimed that "this person was not registered". I have to wonder if the reporter considered asking the ASC why WEALTHSTREET was ever allowed to operate for twenty years without being registered. It was another of a series of articles that seems to apologize for the ASC instead of reporting on them.

This failed system is costing the province of Alberta billions of dollars, and making the corresponding billions easier for people like Goldman Sachs and other giant corporations to make by coming to Alberta to prey upon Albertan's.

Combined, the failures, conflicts of interest and paper record of preferential treatment towards investment industry funding players, and against the protection of the Alberta public, reflects very poorly on the ethics and the professionalism of the Alberta Securities Commission. It speaks to the possibility of investors in WEALTHSTREET and CONCRETE EQUITIES, among many, many other investments turned bad, to recover their money by pursuing the ASC with class action, as investors in Quebec have done with success.

Larry Elford, Financial Fraud Investigator, former, CFP, CIM, FCSI, Associate Portfolio Manager

web sites referenced regarding decisions to allow corporations to violate our laws: ... rders.aspx

web site for Montreal Gazette article about securities commissions being held liable for investor losses from being inept, corrupt or simply asleep....... ... story.html

web site for alberta truth telling investment expert who fees similar legal action could be filed against the Alberta Securities Commission to gain not only Concrete Equities, and WEALTHSTREET clients money back, but thousands of abused Albertans for thousands of other legal tricks played for money by the ASC
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Re: Civil or Criminal Actions against companies or regulator

Postby admin » Wed Apr 27, 2011 5:30 pm

Financial regulators held accountable


In a turnaround that few of Vincent Lacroix's victims expected they'd ever see, last week all 9,200 of them learned they can expect to recover nearly all the money they lost when the fraud-riddled Norbourg empire crashed in 2005.

An agreement in principle with the institutions targeted in the investors' class-action lawsuit -and they include the Quebec securities regulator and two prominent accounting firms -means investors will see $55 million, money they thought was lost.

For investors who were fleeced out of their retirement savings, this is obviously great news. It also heralds a new trend in investor empowerment, some experts say.

For the price of a class-action civil suit, investors can head into battle against fraudulent investment companies. They now have the means to fight back, to be reimbursed or to win compensation.

The $55 million provided in the out-of-court agreement comes in addition to the $32 million in compensation paid by the Autorite des marches financiers from its indemnity fund to 925 Norbourg victims in 2007 and $26 million from the liquidation of Norbourg assets and tax refunds from Revenue Quebec. The total amounts to nearly 100 per cent of the capital lost in the fraud, a nearly unheard-of rate of recuperation.

The downside to the agreement -and it's a big one -is that there will be no public accounting of the role of the securities regulator or the accounting firms and the trust companies involved, Concentra and Northern Trust Company Canada.

The defendants, in return for signing the agreement, made no admission of guilt, and they are under no requirement to discuss in any way their role in the Norbourg meltdown. The public is the worse off for this. There are lessons to be drawn from the debacle, but we don't have any way of knowing what they are.

Unanswered questions are piled up in a dark corner, the biggest being: How efficient an overseer is the province's securities regulator? It seems safe enough to have a few doubts about how much authority the Commission des valuers mobilieres could wield as one of four financial-industry regulators that were collapsed to form the Autorite des marches financiers in 2004. But we should also know more about what kind of improvements the AMF brought in. What became of its inaugural promise to investigate and prosecute cases of fraud rather than negotiate settlements? That seems to have gone by the by.

Investors depended on the professionalism and vigilance of the AMF and of well-known accounting firms to safeguard their money. Was their confidence misplaced? In essence, what went wrong?

Perhaps the lawsuit will prove its worth in another way: A large, scary payout is not something the defendants would want to find themselves part of again.
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Re: Civil or Criminal Actions against companies or regulators

Postby admin » Tue Mar 08, 2011 6:23 pm

apply the following to banks, for mutual funds, gouging, world's highest fees etc, etc. Use your imagination.

The Supreme Court of Canada has held that an agreement to lessen competition "unduly" requires proof of the following two elements:
Don Houston - Paper - Conspiracy Claims - May 2005.doc
1. a moderate degree of market power among the parties to the agreement, and
2. behaviour that tends to reduce competition or limit entry in the relevant market.1
It is not necessary that the agreement actually result in an undue lessening of competition. Nor is it necessary that the parties to the agreement intend to lessen competition unduly. The offence will be made out where the parties to the agreement intended to enter the agreement, which, if carried out, would likely result in the requisite undue lessening of competition. A conspiracy can be inferred from circumstantial evidence. Direct evidence of communications or an agreement between the parties is not necessary for the offence to be proved.

Full document found at : ... y_2005.pdf
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Re: Civil or Criminal Actions against companies or regulators

Postby admin » Mon Mar 07, 2011 6:09 pm

regarding the forum topic on failures to act by the Canadian Competition Bureau: ... y_2005.pdf

The link enclosed was suggested as a private remedy by a competition bureau employee. I suspect the comp bureau itself could be named in a class action that addresses the misrepresentations and misleading claims and names used by the investment industry to help them dupe customers.
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Re: Civil or Criminal Actions against companies or regulators

Postby admin » Thu Mar 03, 2011 10:37 am

Madoff Investor Sues U.S. for Negligence, Seeks $270000

Wednesday, March 2, 2011
(Updates with government immunity in seventh paragraph.)
March 2 (Bloomberg) -- An investor in Bernard L. Madoff's Ponzi scheme sued the U.S., alleging the Securities and Exchange Commission failed to protect him and demanding at least $269,693 in compensation for his losses.
"The SEC turned a blind eye to Madoff's scheme after a plethora of warnings and red flags," Paul Kaye, 40, a lighting technician from New York state, said in a complaint filed Feb. 28 in federal court in Manhattan. "The SEC owed a duty of care to all Madoff investors."
Kaye's suit followed earlier allegations by Madoff investors that the government loses its sovereign immunity from lawsuits if its agencies are negligent. The Litwin Foundation sued the SEC in September for $19 million plus damages.
A similar lawsuit was filed in 2009 by Phyllis Molchatsky, a disabled retiree and single mother who lost $1.7 million. There are 12 cases related to the Molchatsky suit assigned to U.S. District Judge Laura Taylor Swain in Manhattan.
The SEC received at least eight complaints or warnings about Madoff from 1992 to 2008, when the fraud was exposed, Kaye said. During formal probes and "numerous" informal inquiries, the regulator disregarded its policy of reviewing information in tips and complaints before drawing conclusions about their legitimacy, he said, citing a 2009 report by the SEC's inspector general.
The SEC "admitted its gross negligence through an internal investigation" conducted by the inspector general, Kaye said. Florence Harmon, a spokeswoman for the SEC, declined to comment.
Government Immunity
Government agencies can't be sued for doing their jobs, unless they don't follow their own rules. They remain immune from lawsuits if they were exercising judgment, even if they were wrong, the U.S. said in a memorandum supporting a 2009 request to a judge to dismiss the Molchatsky suit.
A federal judge in Los Angeles last month dismissed a suit against the U.S. and SEC, saying the plaintiffs couldn't identify "mandatory directives" that the SEC failed to follow in conducting its investigations of Madoff.
"The pronouncements that plaintiffs identify do not affect the government's discretionary function defense," U.S. District Judge Stephen V. Wilson said in his decision.
In December, the trustee liquidating Madoff's firm, Irving Picard, sued David M. Becker, a former chief SEC lawyer, for $1.5 million. Becker inherited about $2 million from his parents' Madoff account in 2004. Becker said in a Feb. 25 letter to Republicans in the U.S. House of Representatives that the SEC's ethics counsel didn't question Becker's impartiality in doing Madoff work.
At the time of his arrest, Madoff's account statements reflected 4,900 accounts with $65 billion in nonexistent balances. Investors lost about $20 billion in principal.
The case is Kaye v. U.S., 11-cv-1370, U.S. District Court, Southern District of New York (Manhattan).
--With assistance from Bob Van Voris and Patricia Hurtado in New York, and Jesse Hamilton in Washington. Editors: Andrew Dunn, Glenn Holdcraft
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Re: Civil or Criminal Actions against companies or regulators

Postby admin » Sun Feb 13, 2011 11:17 am

Subject: Manitoba Securities Act - Offences and Penalties


General offences

136(1) Every person or company that
(a) makes a statement in any material, evidence, or information submitted or given under this Act or the regulations to the commission, its representative, or the Director, or to any person appointed to make an investigation or audit under this Act, that, at the time, and in the light of the circumstances under which it is made, is false or misleading with respect to any material fact or that omits to state any material fact, the omission of which makes the statement false or misleading; or
(b) makes a statement in any application, report, prospectus, return, financial statement or other document, required to be filed or furnished under this Act or the regulations that, at the time, and in the light of the circumstances under which it is made, is false or misleading with respect to any material fact, or that omits to state any material fact, the omission of which makes the statement false or misleading; or
(c) contravenes this Act, the regulations or a rule specified in a regulation under clause 149(cc); or
(d) fails to observe or comply with any order, direction or other requirement made under this Act or the regulations;
is guilty of an offence and is liable on summary conviction to a fine of not more than $5,000,000. or imprisonment for a term of not more than five years less a day, or both.


What if a mutual fund company publishes written material for public consumption or has media publish the article and knowingly misrepresents
factual information about its operations, policies, investing actions, etc. for the purpose of elevating its public image?

As you can see from the above, articles published and/or distributed for public consumption which are not sent to the Regulators for filing
are not covered under this portion of the Act.

In other words, say what you want to say in public. The public can deal with misrepresentations themselves.

Proof of such misrepresentation (deliberate lying) is available to interested parties.

"Deception by design", the ways of the financial industry.

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Re: Civil or Criminal Actions against companies or regulators

Postby admin » Thu Jan 06, 2011 6:19 pm

Picture 9.png
We are seeing corporations, regulators and some government participants "eating the system from within". Feeding voraciously as if they were a giant internal parasitic organism.

I believe this last two decades of the 20th century and the first decade of the 21st Century will be remembered in history as time when infectious greed ran rampant in corporations, in finance, in regulatory oversight, in ratings agencies, in all levels of government.

It is only for history to decide whether there will be even a glance at justice for the untold trillions of dollars stolen by insiders, or whether those who create our laws will yet again be found to be "above" our laws.
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Re: Civil or Criminal Actions against companies or regulators

Postby admin » Thu Jan 06, 2011 5:55 pm

** Media News ** - BREAKING NEWS - Norbourg victims, AMF could settle $160M lawsuit out of court

by: Paul Delean, The Montreal Gazette, Thursday, January 6, 2010

Investors victimized in the collapse of Norbourg mutual funds in 2005 finally may be on the verge or recouping part of their stake.

Negotiations are under way to reach a settlement in the $160-million class-action suit filed on behalf of all Norbourg victims and scheduled to begin this month in Superior Court in Montreal, a source close to the talks confirmed.

The lawsuit, which targeted Quebec securities regulator L'Autorité des Marchés Financiers (AMF) as well as accounting and other companies that were controlled by or did business with Norbourg and its former head Vincent Lacroix, is due to begin Jan. 31 and take up 12 court days a month for 16 months.

"There's no agreement at this moment," the source told The Gazette on Thursday. "The case could still go ahead. But chances are reduced."

Though there'd been rumours the AMF had received in-house advice to settle with the claimants, it gave a contrary signal last month when it decided to appeal a Superior Court judgment from November that ordered it to provide upwards of $7 million in compensation to 138 Norbourg investors whose original claims were denied.

Judge Bernard Godbout had concluded there was no grounds for denying the group.

Norbourg had 9,200 investors when it was shut down in 2005. The AMF agreed to indemnify 925 of them in 2007, paying $31 million from its financial-services compensation fund.

........please read the article online at - ... story.html
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Re: Legal Actions against companies or regulators

Postby admin » Wed Dec 08, 2010 9:33 pm

images.jpeg (18.93 KiB) Viewed 9918 times
It is December 2010 and I am just marvelling at how "much more" the self serving, abusive and often fraudulent actions prevail by "professional" people, groups and institutions in Canada and the USA. In the USA they allow some transparency into things, and also some prosecutions. In Canada we are so tightly knit, so interconnected that corruption, cronyism and conflicts of interest seem to be an accepted standard practice. It is a form of "financial segregation" which keeps elite power groups getting richer, and the middle class paying for it. Anyone who does not play along is shunned, banned and eliminated from the respective business or profession.

I will upgrade the title for this flogg topic from "legal actions" to "Civil or Criminal Actions" against those who violate the public trust, who sell out the public for profit, for loyalty, for some other gain or consideration. It seems that this is what makes too much of the Canadian world go round. I know that I am dreaming in technicolor to expect something to change in my lifetime, but it never hurts to have a goal in life.

I started complaining about my financial services industry (brokers) in the 1990's after seeing how the "big swinging dicks" (a title given to them by the Edmonton RBC sales manager, Don Milligan, a very old school guy) made their money. Mostly by misinforming trusting and vulnerable clients, often elderly clients who had given them their complete faith and trust. Earn their trust and then abuse it for maximum commissions. That was the game to an entire industry of stock and mutual fund salespeople. It happened about 80% of the time while I watched. Now that I am retired I see it happening (based on sales stats from industry) about 90% of the time. Very abusive. Very obvious.

All parties in the game look the other way. Just like watching the cigarette industry 60 years ago. Or like the Catholic church on abuse 50 years ago. I guess there will come a day when these new forms of abuse are no longer tolerated. When prosecutions, and civil action can and will be common for bankers, regulators, politicians, as well as bureaucrats who sell out the public interest for some kind of gain to themselves. To remain "part of the group".

I find it painful to sit and watch the billions of dollars go missing from investment clients returns while a greedy and morally bankrupt industry keep stuffing money into their own pockets as fast as they can. They don't know whether the law is five years of fifty five years away from catching up with them, but it will come, and until it does, they act like a group of gangsters in an LA riot, when they learn that the police are afraid to come into the neighborhood.

I have to thank them for making my case easier though. For making it more and more obvious that crime, abuse, corruption, conflicts and cronyism is "the way of the middle age white man". I had a hard time engaging people when first talking about it in the 1990's. Markets were so damn good that virtually nobody cared. "Steal?? who cares, my investments are going up."

Today it is a different world. Today we are starting to see glimpses of virtually "everyone" trying to get in on the game. Right up to my local politicians, provincial, and up to Congress in our neighbours land. Almost no one is surprised anymore, and almost nothing is considered to be too unethical to be practiced. Sell out the public for money or power, and there is virtually "nobody" who can stop us, seems to be the rallying cry. They are probably right in these times. Lets hope times change.

You should have seen the scramble in my own city, for council and mayor jobs. I could not figure out any attraction whatsoever. Until I learned that our council had jobbed out about $52 million in consulting contracts over recent years. That is a lot of friends, a lot of loyalties, that can arise from spreading or spending that kind of money. Private business has been done without open transparency among our council members, with nary a thought that they ought not to have their own fingers in the jar......after all, who can stop them?

Provincially, our province (Alberta) has been governed by the same party for nearly 40 years, and the selling out of the public interest is rampant and nearly complete by those who have stayed too long. Financial regulations are now in the hands of friends and elites who are so far above having to follow the law, that we may never get it back. Our health care system is being stolen by bureaucrats being paid on the bonus system to save money here and there by cutting on the actual delivery of medical care, while increasing their own private bonus's for doing so. A virtual private money grab for fat folks who suck at the public trough, lie and cheat to gain their loyalty points and move up the ladder. It is so sad.

I still hold out hope. I look forward to a day when the political porkers will be marched in front of a judge and held to account for selling out the public interest. The cases are too numerous to even begin to count. It might take a private makeover of the judicial system, to allow such radical concepts as justice to enter the arena, but it could happen.

I begin with the financial industry, and very quickly find myself looking into the eyes of political leaders, finance ministers who look the other way for points. Or for worse.

See for a single billion dollar example of political sellout of the public interest. There are a thousand from where than one came from. Each and every one ignored. Each and every one brushed aside by those people at the top whose corruption is so complete that they do not even think about having to follow the law anymore. What a shame. What a bit of entertainment. What kind of ending will we see?
The image enclosed gives me the best visual I could find of what certain politicians, bureaucrats etc act like once they come into a bit of power. A money grab machine for those on the inside.
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Re: Legal Actions against companies or regulators

Postby admin » Wed Dec 08, 2010 5:39 pm ... l=40&Ses=3

good site to view text of

meeting number 38 of the Standing Committee on Justice and Human Rights. Today is Thursday, November 25, 2010.

We're beginning our review of Bill C-21, An Act to amend the Criminal Code (sentencing for fraud).

Some excellent comments about the difficulty of the RCMP to get anything done, then the difficulties of the Crown Prosecutors to run with commercial crime cases. Experts speaking to Parliament.
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Re: Legal Actions against companies or regulators

Postby admin » Wed Dec 08, 2010 5:02 pm

AMF needs investor-fraud compensation plan: finance minister

by: Kevin Dougherty, Montreal Gazette, December 8, 2010

QUEBEC - Finance Minister Raymond Bachand proposed on Wednesday that the Autorité des marchés financiers [AMF], Quebec's financial regulator, hold consultations next spring on compensation for future cases of investor fraud.

"It is a complex file," Bachand told reporters, adding that gaps in Quebec's system of compensation have come to light in the massive fraud by the Norbourg Financial Group.

AMF spokesman Sylvain Théberge said the authority's compensation fund has a limited purpose, to compensate victims of fraud by a relatively limited number of financial advisers, who contribute to the fund.

A Nov.8 judgment in Quebec Court of Appeal calls on the AMF to compensate 138 investors in a company acquired by Norbourg that did not contribute to the compensation fund. The AMF is appealing.

"That was not the intention of the legislator," Théberge said, adding that the AMF is on the same wavelength as the minister and is willing to consider creating a broader compensation fund, but that would take a debate to determine who would pay into the fund and how.

Bachand was explaining why the government supports the AMF decision this week to appeal a Quebec Superior Court judgment ordering the regulator to compensate the 138 who became Norbourg clients and lost their money.

"I have a lot of sympathy for the Norbourg victims but the judgment for the 138 people does not solve the case of the 8,000 Norbourg victims," Bachand said, citing "major legal faults" in the judgment.
In his ruling, Justice Bernard Godbout ordered the AMF to pay claims totalling $7.5 million.

The 138 investors bought mutual funds from Investissements SPA, which was acquired by Norbourg president Vincent Lacroix in 2004.

"That the fraud was imagined and put in place by Mr. Lacroix does not diminish or attenuate the responsibility of Investissements SPA," Godbout wrote in his judgment, saying the 138 should be compensated for what was "a pretty obvious fraud."

Bachand said the Godbout judgment would force him to change the law governing the AMF, "which we don't have time to do. That's one reason we are going to appeal."

Bachand explained that the AMF compensation fund now is narrow.

"It's a $100-billion industry," the minister said, faulting the logic of the Godbout judgment.

"If you ask your pharmacist to pay ... for the error of a drug company that makes a mistake in manufacturing a drug, that's a major fault in this judgment," he said. "And that is why the AMF is going into appeal, and as minister of finance I will have to enact legislation to block that hole eventually."

The minister also noted there is a class-action suit that includes the AMF as a defendant.

"Let's hope we find a solution," he said.

In its appeal, the AMF objects to Godbout allowing Lacroix, now serving a prison term, to testify, noting that Lacroix presented evidence the AMF was previously aware of.

.......please read the article online at - ... story.html
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Re: Legal Actions against companies or regulators

Postby admin » Sun Nov 28, 2010 10:30 am The Fund OBSERVER December 1 , 2010
Investors forced to sue regulator for justice
A Quebec judge has ordered the province's securities regulator to compensate 138 investors who sued the watchdog after they lost their savings in the massive Norbourg fraud. Judge Bernard Godbout of the Quebec Superior Court ruled that the investors succeeded in proving that they were victimized by a fraud orchestrated by Norbourg founder Vincent Lacroix and that as a result they should be awarded damages by the Autorité des marches financiers (AMF).Lacroix, convicted of fleecing about 9,200 investors in now-bankrupt Norbourg out of $115 million over five years, testified in defence of the investors. Their claims total $7.6 million. The decision is considered a blow to the watchdog. It had argued that the investors should not be compensated because the fraud that occurred involved the management of mutual funds, which are not included among the financial products and services for which the AMF compensates.
The AMF argued that Lacroix was not involved in distributing SPA funds. Lacroix testified otherwise, saying he was the sole shareholder and administrator of the firm. To the delight of the investors, Lacroix explained his scheme in detail to the court this past March, saying he bought SPA to snag investors' money and that he falsified documents to hide his actions. The AMF may appeal the decision. ... urg-fraud- victims.html and ... story.html [ The AMF agreed in 2007 to indemnify 925 investors, to the tune of $31 million, with the money coming from its financial-services compensation fund financed by dues from Quebec's 40,000 investment representatives. Another class-action suit seeking roughly $160 million for the rest of Norbourg's clients is due to begin in Jan. 2011 in Superior Court in Montreal ]
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Re: Legal Actions against companies or regulators

Postby admin » Wed Nov 24, 2010 4:53 pm

BMO RRSP Class Action Update

In 2006, a class action was commenced on behalf of a proposed class of
individuals with registered accounts administered by BMO Nesbitt Burns Inc.,
BMO Trust Company, BMO Bank of Montreal and BMO Investorline Inc. in
respect of foreign exchange transactions in RRSP, RRIF and RESP accounts
(the “MacDonald Action”). Details of this class action can be found at <> .

The claim alleges, in general, that the defendants should not have continued the
practice of converting foreign currency in registered accounts after June, 2001
changes to the income Tax Act.

The Skopit Action

In 2007, the defendants obtained a court order to stay the MacDonald Action
because another proposed class action, Skopit v. BMO Nesbit Burns, was
pending (the "Skopit Action). In the Skopit Action, the plaintiffs alleged that BMO
Nesbitt Burns breached its agreements with its customers by charging
undisclosed foreign currency conversion fees between 1996 and 2002.

The Skopit Action was resolved on Friday, October 29, 2010. The court approved
a settlement between the parties. Full details of the settlement are available at: at You should review this information
carefully as you may be entitled to participate in that settlement, if you held any
trading account at BMO between 1996 and 2002. You will see in the settlement
information that part of the Skopit claim and settlement overlaps with the claims
asserted in the MacDonald Action.

Some class members may be entitled to damages in both actions. The Skopit
Action addresses foreign currency conversion fees charged on securities trading
accounts with BMO Nesbitt Burns between December 16, 1996 and September
30, 2002. The MacDonald Action addresses foreign currency conversion in
RRSP(s), RRIF(s) or RESP(s) accounts occurring from June 14, 2001 to the
present. Transactions between June 14, 2001 and September 30, 2002 are
covered by both the MacDonald and Skopit Actions (the "Overlap Period").

Class members have three options available to them:

1. They can do nothing, in which case part of their potential claim (from June
2001 until the end of 2002) will be settled under the terms of the Skopit
settlement. Class members will receive whatever benefits would accrue to
them under the Skopit settlement, for this part of their claim.

2. They can fully opt out of the Skopit settlement, in which case they are not
bound at all by that result, but cannot participate in that settlement. Or

3. They can opt out of the part of the settlement that overlaps with the
MacDonald Action, in which case class members will receive the benefits
of the Skopit settlement for the period up to June 14, 2001, and will be
able to continue to participate in the pending MacDonald class action, in

Class members may participate in both class actions, but they cannot recover
twice for the Overlap Period. They must select to participate in only one action in
respect of the Overlap Period.

Visit for full details of how to do this.

How to Opt Out

To opt out of the Skopit settlement Overlap Period (June 14, 2001 – December
31, 2002), class members should write to the claims administrator at:

Howie & Partners LLP
3063 Walker Road
Windsor, ON
N8W 3R4
Fax: 519-250-1929.

Your letter should include:

1. your full name;
2. your BMO NB account number;
3. your mailing address and telephone number; and
4. your signature.

In the body of the letter, state that you are a Class Member and that you choose
to opt out of the BMO NB Foreign Exchange Class Action in respect of
Overlapping Transactions.

Next Steps

Now that the Skopit Action has been resolved, class counsel are preparing to
proceed with the MacDonald Action. The next step is to seek to have the action
certified by the court as a class proceeding. A timetable for proceeding with the
certification motion will be set by the court, and we anticipate that the motion will
be heard early in 2011. Assuming the motion for certification is successful, the
action will then proceed as a class action, on behalf of BMO's registered account
holders since June 2001. Further updates will be provided on our website at: as the matter progresses. We encourage
you to check back from time to time for updates.

If you have any questions, please contact class counsel at:
Toll Free: 1-888-569-4526
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