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Friday, August 28, 2009

Sales-Persons Being Investigated

Four salespersons involved in the promotion of an alleged illegal distribution of securities issued by a shell company related to CTIC, will appear in front of a panel of the New Brunswick Securities Commission next month. Staff have filed a motion alleging that Pierre Emond and Armel Drapeau of Edmundston, Jules Bossé of St-Jacques and Robert Saintonge of Fredericton promoted an illegal distribution of CTIC securities.

NBSC staff believe the distribution shows signs of a Ponzi scheme. The initial bankruptcy trustee indicates that money received from investors was being used to pay other investors. The scheme, which is still under investigation, is currently estimated to be in the range of $15 million, $5.7 million of which was in this Province.

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