July 2, 2009
SAINT JOHN (CNB) - Two Quebec companies that were recently the subject of an order issued by the New Brunswick Securities Commission (NBSC) are seeking bankruptcy protection under the Bankruptcy and Insolvency Act.
Groupe Financier CTIC, CITCAP Groupe Financier Inc., and their principal, Patrick Gauthier, raised more than $5.7 million from New Brunswick investors between 2006 and 2008.
The investors were primarily from Edmundston and Grand Falls, and to a lesser extent, from the Acadian Peninsula, Moncton, Saint John and Fredericton.
An NBSC investigation conducted in early 2009 revealed that CTIC and CITCAP had not complied with New Brunswick securities laws in selling its investments.
As a result, in April, the NBSC issued a consent order limiting CTIC and CITCAPs' activities in New Brunswick. The NBSC's order was followed shortly by an additional order from Quebec's securities regulator, l'Autorité des Marchés Financiers, which declared that the Quebec assets and bank accounts of CTIC and CITCAP be frozen.
CTIC and CITCAP sought bankruptcy protection and, as a result, the assets of these companies are under the control of a bankruptcy trustee in Quebec. There will be a hearing of creditors on July 13, 2009.
New Brunswickers who invested in either CTIC or CITCAP are urged to seek professional advice from a lawyer or accountant with respect to their rights in the proceedings under the Bankruptcy and Insolvency Act.
Investors should contact the NBSC at 1-866-933-2222 or through its website if they have questions.
The NBSC is the Crown corporation that regulates the securities industry and ensures the efficiency and integrity of capital markets in New Brunswick. Its mandate is to protect investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets.
The NBSC develops and enforces securities regulation and offers impartial educational information and resources to New Brunswick residents about investing. For more information, visit http://www.nbsc-cvmnb.ca.
MEDIA CONTACT: Michelle Robichaud, communications officer, New Brunswick Securities Commission, 506-643-7045.