Dominic Lacroix, creator of the virtual currency PlexCoin, and Yan Ouellet, director of information technology for the project when the alleged facts occurred, were found guilty by Québec Court Judge Steve Magnan.
Dominic Lacroix and Yan Ouellet were charged with, respectively, making a distribution without a prospectus and aiding in the making of a distribution without a prospectus. Mr. Lacroix was also charged with one count of making misrepresentations in respect of transactions in securities in connection with the PlexCoin project.
Sabrina Paradis-Royer, Dominic Lacroix’s spouse, was found not guilty of the two counts against her of making a distribution without a prospectus.
The Autorité des marchés financiers (AMF) launched its investigation into PlexCoin in May 2017.
Its findings led it to act quickly to obtain freeze orders in respect of the amounts held in Québec in order to protect investors and limit their losses. The AMF also instituted a number of court proceedings to prevent financial practices considered illegal, abusive or fraudulent and issued various news releases and warnings advising investors to exercise caution.
Moreover, the AMF collaborated with the U.S. Securities and Exchange Commission (SEC), which also conducted an investigation into the activities of Dominic Lacroix and PlexCoin in the United States.
Submissions on the sentencing of Dominic Lacroix and Yan Ouellet will be heard in 2024.
