Fondation Fer de Lance Sponsors

August 02, 2011 08:00 ET

Fondation Fer de Lance Sponsors Continue their Fight Against AMF to Preserve their Rights and Recover their Capital Deposited in Trust

MONTREAL, QUEBEC--(Marketwire - Aug. 2, 2011) - Jean-Claude Vachon, a long time Sponsor of Fondation Fer de Lance (FFDL), and representing the Sponsors of FFDL ("The Group of Sponsors") after proper consultation with them, declared: "The Group of Sponsors was stupefied to say the least by the nature of the allegations of the AMF in its press release of July 26, 2011 relating to FFDL and in respect to a number of its representations."

The Group of Sponsors continues its long term fight against the Québec Autorité des marchés financiers (AMF) to recover their capital deposited in trust, which are still currently held in security in trust with the Montreal Law Firm: Lapointe Rosenstein Marchand Melançon.

They will introduce shortly, an amended Motion for Declaratory Judgment against the AMF before the Québec Superior Court. The Group of Sponsors states that the AMF has been preventing them for more than two years from retrieving their own capital which FFDL had offered previously to return to them.

"The AMF is preventing The Group of Sponsors from retrieving their own capital; notwithstanding the legal proceedings which The Group of Sponsors had instituted in December 2009 before the Bureau de Révision et de Décison en valeurs mobilières ("BDRVM") to that effect. Thereafter The Group of Sponsors was obliged not only to sue before the Superior Court in March 2010, but then to appeal the Appeal Court of Québec following the attitude of AMF refusing to accept the alleged facts", says Jean-Claude Vachon.

"Furthermore, it is essential to note that The Group of Sponsors has never filed a complaint against the FFDL with the AMF nor has it solicited or desired its intervention", continues Jean-Claude Vachon. "Our intent in coming forward at this time is to clarify certain alleged facts in light of the representations of the AMF with respect to FFDL and its Sponsors. The Sponsors are honest and trustworthy people who believe sincerely that they dealt with people equally honest and trustworthy, as the evidence filed in the various proceedings bears."

In a press release issued on July 26th 2011, the AMF failed to mention that, in March 2010, The Group of Sponsors had instituted before the Superior Court of Québec, various legal recourses against the AMF to protect its rights as owner of its own capital.

These recourses include an Action alleging damages (court case number: 500-17-056804-100) against the AMF for more than 4.5 million dollars alleging amongst other things, AMF's misrepresentation, perjury, concealment of evidence and malice as well as a Motion for Declaratory Judgment (court case number: 500-17-056802-104 and 500-17-056817-102) which, ironically, seeks to have The Group of Sponsors to be declared owner of their own funds.

After more than a year, The Group of Sponsors filed a complaint (court case number: 500-17-056817-102) alleging that the AMF had been preventing them from retrieving the capital that FFDL offered to return to them long time before. In addition, the Group of Sponsors had to go all the way to the Court of Appeal of Québec (court case number: 500-09-021055-108) to obtain a decision directing that this Motion for Declaratory Judgment be heard by the Superior Court, which appeal was successful.

Despite this favorable decision from the Court of Appeal of Québec, (case court number: 5500-09-021055-108) which does not support the AMF's position in this regard, the AMF is still preventing the Sponsors from retrieving their own capital.

"The Group of Sponsors does not understand and finds it rather strange, to say the least, that the AMF, which as per our understanding has a mandate to protect and keep the public informed, has never published nor mentioned the aforesaid proceedings. The Group of Sponsors invites all interested parties to consult the proceedings mentioned above in order to judge by themselves the intrinsic value of either of the press releases, as well as the manner in which the AMF was able to cause the BDRVM to issue an ex parte order against FFDL freezing OUR FUNDS in July 2009", said Vachon.

As this matter is currently before the courts, no other comments will be issued at this stage to protect the legal process to unfold.

Legal proceedings and judgments can be obtained upon request. Please note all documents are available in French only.

Contact Information

  • Source:
    Jean-Claude Vachon on behalf of The Group of Sponsors:
    (866) 833-4841

    Information:
    Mylene Forget, LL. B.
    Massy-Forget Public Relations
    (514) 842-2455, ext. 17
    mforget@mfrp.com