Quebec’s AMF to compensate 925 Norbourg investors a total of $31 million
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Hey there, time traveller!
This article was published 18/01/2007 (7185 days ago), so information in it may no longer be current.
MONTREAL (CP) – More than 900 investors with the failed mutual fund company Norbourg will be compensated a total of $31 million by Quebec’s financial services regulator.
L’Autorite des marches financiers (AMF) said Thursday it expects to compensate 925 investors with a maximum individual compensation of $200,000. However, payouts should average about $35,000. The financial services regulator said it refused 1,062 requests for compensation.
Jean St-Gelais, president of the financial regulator, said the compensation fund’s guidelines prevented more investors from getting money back.
“The Financial services indemnisation fund offers compensation only if the fraud takes place during the distribution of financial services products,” St-Gelais said at a news conference.
“In the Norbourg case, the fraud took place principally in the management of mutual funds, which explains why the majority of victims don’t have recourse to compensation.”
The former president of the defunct investment house, Vincent Lacroix, faces some 50 security act charges of fraud, manipulation of mutual fund values and falsified documents filed by Quebec’s financial regulator in 2005.
Lacroix, whose first case is scheduled for the spring, has said he is not guilty.
About 9,200 Norbourg clients and its affiliated companies lost about $130 million of the $205 million placed with Norbourg.
St-Gelais said the AMF’s primary goal was always to ensure victimized investors got as much money back as possible.
“Today we took a step in that direction,” he said.
Some investors stand to receive more compensation from the planned liquidation of Norbourg’s assets.
But the liquidation has been delayed pending a Quebec Superior Court decision about how Norbourg’s funds will be distributed.