Business

Quebec seeks to recover millions in Norbourg mess

Quebec's securities regulator is seeking $31.8 million from several key figures involved in the massive Norbourg securities fraud, including former Norbourg president Vincent Lacroix.

Money would help to reimburse investors

Quebec's securities regulator announced Monday it is seeking $31.8 million from several key figures involved in the massive Norbourg securities fraud.

Among those named by l'Autorite des marches financiers are Norbourg Financial Group Inc. and its former president Vincent Lacroix. Several officials with Norbourg subsidiaries Groupe Future Inc. and Norbourg Capital Inc. are also named.

Lacroix has already been convicted of securities violations and was sentenced in December to 12 years minus a day in prison. He also faces a number of new charges.

The securities regulator said Monday that the representatives favoured their own personal interests to the detriment of their clients and on occasion received inexplicable and substantial amounts of money beyond their normal remuneration.

The legal claim permitted under the law governing the sale of financial services and products is designed to reimburse 886 investors who lost money. Proceeds will be distributed through an indemnity fund.

Quebec Premier Jean Charest recently mused about holding a public inquiry into the government's role in the fraud.

The RCMP recently laid more than 900 new charges in the scandal that cost about 9,000 investors a total of $115 million.

The latest people arrested will face charges of conspiracy to commit fraud, conspiracy to fabricate false documents, fabricating false documents, fraud and money laundering.

Not named in the regulator's claim is Jean Renaud, a bureaucrat in the Quebec finance department, who was arrested in June.