New Brunswick Securities Commission

Quebec company admits to wrongdoing (09/04/20)

NB 519

April 20, 2009

SAINT JOHN (CNB) - A consent order has been issued against Groupe Financier CTIC (CTIC); a related company, CITCAP Groupe Financier Inc. (CITCAP); and Patrick Gauthier (the respondents), by a panel of the New Brunswick Securities Commission (NBSC) on April 14, 2009. The matter had been scheduled to be heard on Wednesday, April 15.

The matter arose as a result of an investigation by NBSC staff, which revealed that CTIC had sold securities in 2006, 2007 and 2008, on 109 separate occasions to 63 individuals, raising more than $5.7 million in New Brunswick alone.

In its motion materials, the NBSC staff alleged that CTIC had not complied with disclosure and registration requirements under the Securities Act, and that CTIC did not meet the criteria for exemptions with respect to sales of securities to New Brunswick residents. In the order, the respondents admitted to having issued securities in New Brunswick without complying with New Brunswick securities law, and did not contest the interim relief sought by NBSC staff.

Under terms of the order, the respondents are not eligible for any exemptions available under the Securities Act. Gauthier, the principal of both CTIC and CITCAP, is further prohibited from becoming or acting as a director or officer of any issuer, registrant or mutual fund manager until the NBSC's investigation is complete and there has been a final decision in this matter.

CTIC must also provide audited financial statements for the fiscal years 2006 and 2007, by Oct. 15, 2009.

Motion materials and the consent order may be viewed on the NBSC website.

Investors should contact the NBSC at 1-866-933-2222, or through the NBSC website, if they have questions about the company or individuals named in this release.


MEDIA CONTACT: Michelle Robichaud, communications officer, New Brunswick Securities Commission, 866-933-2222, or 506-643-7045.