Charges were first laid against Jacky Quan, Gia Tuong Quan, Normand Bouchard, Mario Dumais, Mario Paquin, Tri Minh Huynh, Robert Savoie and Claude Valade for fraud and fraudulent manipulation of stock exchange transactions estimated at $3 million. They were also charged with commission of offences in association with a criminal organization and with conspiracy to commit criminal offences.
A second set of charges for fraud unrelated to market manipulation estimated at $140,000 were also laid against Claude Valade, René Viau, Rénald Gagnon and Richard Tremblay. They were also charged with conspiracy and commission of indictable offences in association with a criminal organization.
The offences for which the accused are charged were allegedly committed between the months of May 2008 and December 2009.
The victims in this case are primarily holders of various types of registered retirement savings plan accounts (RRSPs, LIRAs and other) who were recruited through local and regional newspaper ads. The accused offered these retirement plan holders to transfer their savings into a self-directed account and let them have part of the value of their accounts without any tax deductions. In return, the victims gave the organization control over their self-directed accounts. The accused then emptied the victims’ accounts in association with the organization though a series of prearranged stock market transactions.
Fifty-nine Canadian-based small capitalization company stocks traded on TSX-Venture were allegedly manipulated by this criminal organization without the companies’ knowledge.