A ruling that ordered an insurance company to pay $460,000 to a Quebec couple raises questions over the scope of professional liability insurance coverage.
Weeks after three more individuals linked with the bankrupt Montreal financial group Mount Real Corp. were ordered to pay fines ranging from $7,000 to $104,500, its former president now faces charges in an another alleged fraud that dates back to 1998.
Lino Matteo was accused yesterday of conspiring to divert more than $120 million from scandal-plagued Montreal animation company Cinar to several investment companies in the Bahamas tied to Norshield Asset Management, which collapsed into bankruptcy in 2005.
Matteo, who was ordered in three years ago to pay $18,000 in fines after being found guilty of ethical violations by a three-person disciplinary committee of the Quebec Order of Certified Management Accountants, asked for a legal-aid lawyer to represent him in future proceedings. Matteo, whose wife took out a $50,000 mortgage on a property to secure his release, cannot leave the country and is not allowed to take part in investment work.
When Paul Messier Jr. pled guilty in mid-January to 10 counts before Court of Quebec Justice Jean-Pierre Boyer, it marked the nineteenth conviction against individuals in the Mount Real financial scandal.
“Jail sentences do not deter future white-collar crimes. What discourages future white-collar criminals is the fear of getting caught, not the length of sentence,” according to an accounting professor.