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Securities regulator may appeal sentence reduction for Norbourg boss |
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Written by Nelson Wyatt, THE CANADIAN PRESS
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Tuesday, 08 July 2008 |
Former Norbourg president Vincent Lacroix. THE CANADIAN PRESS/Ryan Remiorz
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MONTREAL - Quebec's securities regulator is considering appealing a judge's decision to cut the prison sentence of former Norbourg president Vincent Lacroix by 42 months.
Quebec Superior Court Justice Andre Vincent ruled Tuesday that the term of 12 years less a day given to Lacroix last January was too long. Under the new sentence, Lacroix will serve eight-and-a-half years behind bars.
Lacroix was convicted last December of 51 securities charges after a trial that lasted a total of 58 days.
The scandal rocked Quebec and bankrupted thousands of people who were scammed out of funds most were depending on for their retirement.
In his decision, Vincent acknowledged the scope of Lacroix's crimes and said the securities regulator had proven its case.
"He was part of a financial scandal without precedent in the judicial history of this country," Vincent wrote.
Lacroix had asked the judge to cut his sentence to five years.
Vincent said in his decision that the principle of consecutive jail terms does not apply to all the securities charges on which Lacroix was convicted.
For example, Vincent said there was no reason to create two categories of sentence relating to the fabrication of false documents in Lacroix's case.
"By doing this, the first judge is discarding the principle of concurrent sentences," he wrote. "As well, the sentence is being exaggerated in terms of a case under the provincial penal code.
"By juxtaposing sentences of five years less a day with sentences of 42 months, he has reached a total of 12 years less a day when the maximum foreseen by the law is five years."
As part of his original sentence, Lacroix was also fined $255,000.
The securities regulator was studying the decision, which was released late Tuesday afternoon.
"The Autorite des marches financiers, which pleaded in favour of these sentences, is evaluating the possibility of appeal," the securities regulator said in a statement.
"The priority of the Autorite rests with interests of the investors."
Clemente Monterosso, the lawyer for Lacroix, said Vincent had validated the contention that the initial sentence imposed by the judge against his client was "unreasonable and excessive" given the fact the maximum sentence in provincial legislation is five years less a day.
The judge did not take issue with the hefty fine levied against Lacroix.
More than 9,000 investors were defrauded of a total of $115 million when Lacroix made a series of illegal transactions through the investment house.
The securities regulator is trying to get $31 million from Lacroix to top up the reimbursement fund slated for defrauded investors.
Lacroix is also facing 200 criminal charges in connection with the Norbourg case.
These stem from an RCMP investigation that concluded last month and which extended as far as Switzerland. More than 900 charges were laid against Lacroix and five other people in connection with the massive fraud.
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Last Updated ( Tuesday, 08 July 2008 )
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