May 11, 2011 by Canadian Underwriter
Quebec’s financial services regulator, the Autorité des marchés financiers (AMF), is paying out $1.6 million in compensation to 28 investors defrauded in an investment scam in connection with former insurance broker and financial advisor Carole Morinville.
In August 2010, the AMF suspended bank accounts and three companies operated by Morinville, who was a licensed insurance broker up until July 13, 2010, and her husband, Robert Diano.
An AMF investigation found Morinville had passed herself off as a financial advisor and solicited a total of $1.6 million in investments from 28 people between 2007 and 2010.
“The evidence showed overwhelmingly that Carole Morinville used an investment scam and her relationship of trust with these 28 investors to elicit funds,” the AMF reported in a press release. “The evidence also showed that Carole Morinville cashed the amounts entrusted to her by these 28 claimants and seemingly never invested any of the funds.”
The AMF said it received 42 claims between August 2010 and January 2011. Twenty-eight of the 42 claimants will receive compensation.
Under fund rules, the maximum amount of compensation payable is $200,000 per claim.
The AMF said it would “take the necessary steps to recover from Carole Morinville the amounts reimbursed to the victims.”