Ex-Norbourg CEO appeal to avoid prison for fraud

Former president of Norbourg investments Vincent Lacroix, who was convicted of fraud last December, is challenging Quebec's securities laws in a bid to avoid prison.

Lacroix was back in court on Thursday to convince a judge that Quebec's securities legislation is unconstitutional because it imposes stiff prison sentences up to 25 years, similar to criminal charges.

The founder and former CEO of Norbourg investments was found guilty on Dec. 11 of 51 fraud charges stemming from an extensive investigation launched by l'Autorité des marchés financiers (AMF), Quebec's financial regulating body.

Lacroix was accused of siphoning $115 million dollars from Norbourg funds belonging to about 9,200 investors.  

The AMF is seeking a minimum 15-year sentence, and a maximum penalty of five years per count for Lacroix.

The former financier told Quebec court Judge Claude Leblond Thursday that he was never accused of any crime, but rather of having violated provincial securities rules, and the AMF does not have legal authority to seek such a sentence.

The judge said if Lacroix had used a lawyer during his trial, he could have presented his arguments of unconstitutionality earlier — and that Thursday's appeal was ill-timed.

But Leblond said he would examine the financier's request, which Lacroix is expected to hand in Thursday afternoon.

Outside the courthouse Lacroix had little to say. When asked by reporters why he is launching this challenge now, he said he had no comment, and invited people to come to court "to see."

Thursday's request is the latest in a string of legal appeals launched by Lacroix since his guilty verdict. He is also asking for a new trial, arguing the court denied him a fair and just legal process because 30 of his witnesses were rejected as being non-relevant to his case.

Lacroix represented himself during his fraud trial after his bid to seek legal aid failed. He filed for bankruptcy in October 2005.

The Norbourg trial, as it has become known, is the largest economic legal case in Quebec's history. Lacroix was found guilty of having made 137 illegal withdrawals from Norbourg accounts for a total of $115 million.

The RCMP also investigated Lacroix last year and criminal charges could result from that probe.

Lacroix is scheduled to be sentenced on Monday.