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Financial services Quebec

Quebec financial regulator cracking down on illicit money-services businesses

Quebec’s financial watchdog is cracking down on businesses that illegally run a money-services business.

Why it matters: So far this year the AMF announced that 11 small businesses or individuals pled guilty before the Court of Quebec to illictly operating a money-services business, the overwhelming majority of whom were fined $15,000 for each infraction.…

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Business Quebec Court of Appeal Rulings

Quebec Court of Appeal harmonizes securities law with other provinces

The Quebec Court of Appeal eliminated a tactical advantage that could have emerged by launching national class actions in secondary market misrepresentation cases in the province after it held that Quebec securities rules were designed to be harmonized with provincial securities legislation across the country as a matter of substantive law.

Why it matters: The ruling is one of a handful secondary market misrepresentations cases heard by Quebec courts.…

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Business Quebec Court of Appeal Rulings

Terms of contract usurp good faith, holds Quebec Appeal Court

Former employees of an asset management firm who claimed that they were unfairly bought out just before the company was sold lost a legal battle after the Quebec Court of Appeal held that the duty to act in good faith does not mean that a party to a contract must impoverish itself to enrich the other.

Why it matters: The Quebec appeal court reaffirms that the terms of a contract determines the rights of parties and that it almost always trumps the duty to act in good faith.…

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Business Quebec Court of Appeal Rulings Tax

Revenue Quebec can issue demand letters to third parties outside of the province

The Quebec Court of Appeal has ruled the province’s tax authority can issue demand letters and request the disclosure of financial information from third parties outside the province to determine whether a taxpayer is subject to the province’s tax laws.

Why it matters: It is widely expected that Revenue Quebec will now issue more demand letters to third parties outside the province even though questions remain over the scope of the ruling.…

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Employment & Labour Law Quebec Quebec Superior Court Rulings

Court awards former Quebec paramedics $1.2M over subway scare

Montreal’s transit authority has been ordered by Quebec Superior Court to pay two former paramedics more than $1.2 million for a scare that left them unable to work in their profession.

Why it matters: The ruling highlights one of the singular situations where an injured worker can bring a civil suit even though one of the cardinal principles behind Quebec’s occupational health and safety regime is that workers cannot bring a civil liability suit against their employer because of the injury.…

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Business Internet Quebec Superior Court Rulings

Suspected PlexCoin founder sentenced to two months in prison

Dominic Lacroix, a Quebec City businessman believed by Quebec’s financial watchdog and the U.S. Securities and Exchange Commission to be behind PlexCorps, a controversial cryptocurrency start-up accused of fraudulently selling up to $15 million of tokens, was sentenced to two months of prison and fined $100,000 for contempt of court.…

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Business Internet

U.S. SEC files charges against PlexCorps

The U.S. Securities and Exchange Commission has obtained an emergency asset freeze against PlexCoin, a controversial “fast-moving” and “purported” initial coin offering (ICO) that has raised up to $15 million from thousands of investors since August 2017.

The SEC also filed charges against Dominic Lacroix, a “recidivist” Quebec securities law violator, his partner Sabrina Paradis-Royer and his company PlexCorps, according to a new filing dated December 1, 2017 in Brooklyn, New York.

Why it matters: Regulators are keeping a watchful eye on ICOs, hoping to make life difficult for predatory offerings that promise exhorbitant returns.…

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Business Civil Code of Quebec Quebec Court of Appeal Rulings

Appeal court overturns $5.6 million award

A lower court ruling that awarded $5.6 million to a vessel fleet operator was overturned by the Quebec Court of Appeal after it held that the trial judge erred by applying the Civil Code of Quebec to settle a dispute instead of Canadian maritime law.

In a majority decision, the appeal court held that disputes concerning the repair and supply of engine parts to a ship is subject to Canadian maritime law, and therefore common law rules apply rather than civil law rules of delictual liability. As Canadian maritime law applies, the appeal court reaffirms it is the common law of contract and tort that applies to these cases.

The ruling, met with a sigh of relief by the maritime business world, dispels confusion and uncertainty engendered by the lower court ruling as it reaffirms that Canadian maritime law applies uniformly across Canada and “ousts” the application of provincial law, according to maritime lawyers.…

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Business Quebec Superior Court Rulings Tax

Decision may grant tax authorities with much leeway

Quebec Superior Court overturned a ruling that held that the investigative methods used by federal and provincial tax authorities to investigate corruption in the Quebec construction industry were “highly reprehensible,” paving the way for Canada Revenue Agency and Revenue Quebec to once again pursue tax evasion inquiries that were put on hold for the past two years.

In a series of concurrent decisions, Quebec Superior court Justice Daniel Payette held that the investigation conducted by tax authorities did not contravene the leading Supreme Court of Canada decision in R. v. Jarvis, [2002] 3 SCR 757, which draws a distinctions between civil tax audits and criminal tax investigations.…

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Business Court of Quebec Quebec White-collar crimes

Montreal man ordered to pay largest fine ever issued for Quebec securities offences

A Montreal man was fined $11.2 million, the largest fine ever issued in Quebec for securities offences, and sentenced to a three-month jail sentence for fraudulent penny stock practices commonly referred to as “pump and dump” scheme.

Jean-François Amyot is among one of five people and two companies that plead guilty to charges laid against them by the Quebec financial watchdog, Autorité des marchés financiers, nearly three years ago during a trial earlier this year.…

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