Caisse named in Norbourg class action

Réal Ouimet, the former chief of the Bromont Police Department who lost $ 310,000 in Norbourg, officially launched his effort this morning to bring a class action against the Caisse de dépôt et placement du Québec, on behalf of the approximately 9,200 victims of Vincent Lacroix.

The Superior Court heard his request to authorize a class action against the Caisse this morning. The holders of the Fund to fund developments require $78.5 million to the latter.

Here is an excerpt from a document obtained by Advisor.ca’s Montreal affiliate, Conseiller.ca:

(Start of document)

We pursue this class action against the Caisse because:

• We had confidently entrusted our savings to the Caisse.

• Les Fonds Évolution was, for us, the Caisse / CDPQ.

• The Caisse must act at all times in good faith.

• The Caisse did not act diligently in transferring our savings to the buyer, Norbourg Asset Management.

• The Caisse has failed in its obligation to protect Quebecers, who had full confidence in the Caisse.

• The Caisse must secure the transfer of its loyal customers since 1995, who were invested in Fonds Évolution.

• The Caisse, through its negligence, is totally responsible for financial losses we have suffered.

• We want to show the class that the Caisse has deceived us and Caisse de dépôt et placement du Québec must be found liable for financial losses and damage to thousands of investors who trusted it.

• The Caisse received four bidders for the sale of its business (Fonds Évolution and Cartier Partners):

• Desjardins • Industrial Alliance • Standard Life • Dundee

Why were the assets sold to Lacroix?

“We are a Canadian company, partnered with CPDQ Financial Services, a subsidiary of the Caisse de dépôt et placement du Québec. Our offices are located in Montreal and Quebec, we are closer to your needs and can better advise you. “- Excerpt from the Fonds d’investissement Évolution marketing brochure.

(End)

The Caisse de dépôt et placement du Québec held 80% of the shares of Teraxis Capital, which managed funds Fonds Évolution. In December 2003, the organization has sold Norbourg Asset Management for $6 million.

On June 28, three judges of the Court of Appeal for Ontario ruled in favor of Réal Ouimet and allowed him to bring a class action against the Caisse, on behalf of defrauded investors in this case.

Réal Ouimet, who for 28 years led the Bromont police service in the Eastern Townships, learned in August 2005, barely two years after he retired, he had lost all the money he had invested in these funds. Of $ 310,000 he lost, Ouimet has been able to recover $20,000.

(11/25/10)