The Sovereign General plans to appeal Cdn$560,000 fine

The Sovereign General Insurance Company says it is “perplexed” by — and plans to appeal — a Cdn$560,000 fine it has been ordered to pay by the Court of Quebec’s Penal Division on Nov. 10.
Court of Quebec Justice Serge Boisvert found The Sovereign General guilty on 56 charges brought against it by the Autorité des marchés financiers (AMF) in January 2006.
Specifically, the court found The Sovereign General was guilty of “consenting to and/or authorizing the issuance of inventory insurance policies by Flanders Insurance Management and Administrative Services Ltd. (Flanders), a firm not registered with the AMF, to recreational vehicle dealers in particular, thereby violating section 71 of the Act respecting the distribution of financial products and services (the “Act”) and committing the offence under section 482 of the Act.”
Flanders, which is based in Winnipeg, pleaded guilty in 2007 to the 210 charges brought against it by the AMF, an AMF press release states. The AMF further observed Flanders was “acting as a firm without being duly registered as such and was consequently ordered to pay fines totalling [Cdn]$210,000.” 
The Sovereign General expressed “surprise and disappointment” with the Quebec Court’s decision, arguing that the “supposedly unlicensed” transactions were in fact legal and occurred outside of the province of Quebec.
“It was, and remains, the Sovereign General’s opinion that the transactions in this case were conducted in Ontario, not Quebec,” The Sovereign General noted in a press release. “We are also aware that regulators in other provinces have looked into this scenario and found it to be entirely legal.”
The company went on to say it “categorically denies the allegations and plans to appeal the decision.”