MONTREAL, Nov. 11, 2011 /CNW Telbec/ - Fondation Fer de Lance (FFDL) vigorously disputes the position of the
Autorité des marchés financiers (AMF) as outlined in the article
published in the business section of La Presse on October 29, 2011.
"I am very disappointed that the AMF is publicizing through a recognized
journalist half-truths and false allegations", declared Mr. Gélinas,
Trustee-Executor of FFDL. "We shall continue to concentrate upon the
facts. Admittedly, even though I am but a simple Trustee-Executor, my
credibility is currently being questioned everywhere. This is
distressing to have to use the media platform, when everything is
already in front of the court ready for hearing, but we cannot leave
such situation without proper clarifications", added Mr. Gélinas.
Mr. Gélinas raises, inter alia, the following inaccuracies and questions:
Paul M. Gélinas states categorically having never borrowed funds in the
United Kingdom, as the AMF currently alleges.
The amounts alleged by the AMF are incomplete nor does the source
thereof come from the United Kingdom or from FFDL.
After more than 25 months of which seems to take the turns of a "David
vs Goliath" battle, the costs of the multiple contestations now
instituted by FFDL and by the Sponsors, before the BDR, the Superior
Court, the Court of Appeal or the Québec Court, are far more expensive
than the AMF seems to assert.
"It costs an arm and a leg to stand-up to such a giant! The AMF also
attempted to freeze my personal accounts in October 2010, through an ex parte application before the BDR, and their own tribunal refused their
request. It is now repeating such attempts through other means and
thus prevents us from paying our defence costs! If this is not single
minded harassment, what is it?", asks Mr. Gélinas.
Facts alleged by Mr. Preschoux, an FFDL Sponsor, relating to his
misgivings in 2008 are to say the least surprising, as, on May 21,
2009, he, and all other Sponsors, received a formal letter from FFDL to
retrieve their capital at will, and he did not do so.
Today, his capital, and the capital of other sponsors, are held in trust
at the law firm Lapointe Rosenstein Marchand Melançon (LRMM) of
Montréal and only the acts of the AMF, which have been vigorously
contested for over 25 months by FFDL and the Sponsors, (see the press
release of August 9, 2011 for a list of the documents filed in
evidence, which documents are available), prevent them from retrieving
their capital since they have been frozen by the AMF from July 17,
"Contrary to the insinuations of the AMF, FFDL is unable to refund the
sponsors' capital. And for just cause! This capital is not and never
has been the property of FFDL and is and remains the property of the
Sponsors and only the Sponsors, as evidenced by the various proof
thereof on file with the BDR, the AMF and the other courts involved in
this matter over the last 25 months", declared Mr. Gélinas.
FFDL is not in deficit. In this respect, see FFDL's press release of
August 9, 2011. The evidence thereof, mentioned in that press release,
PIF is totally unrelated to FFDL. There is no ponzi style scheme in
this matter. PIF has its own situation, its own activities and a real
guarantor, notwithstanding the false allegations of the AMF. There
were problems which will be in due course properly resolved.
The guarantor has itself set at use funds to PIF, as he will demonstrate
at the appropriate time. Agreements have been signed at the head
office of the parent company.
Never were the funds of the Sponsors used to pay debts of PIF. This is
a virtual impossibility since the funds of the sponsors, in trust with
LRMM, have been frozen by the AMF. "Neither is there any plot involving
lawyers for whatever purpose, even less for the purpose of contravening
the stay order in favor of the AMF. Notwithstanding the belief of the
AMF, I am not the executive head of FFDL, but only its
Trustee-Executor. FFDL is a team of people", added Mr. Gélinas.
The funds, the Sponsors are truly protected notwithstanding the AMF's
The contracts in Papua and Ivory Coast are real: "Only the misguided and
unjustified extra-territorial interventions of the AMF, based on false
or insufficient information, caused the cancellation of these
contracts. Why are the AMF and the Attorney General multiplying
delaying tactics? Is it to avoid having to plead the constitutionality
of certain provisions of the statute creating the BDR?", asked Mr.
The evidence shows that the capital truly and legally belongs to the
more than 34 Sponsors, which has been frozen in trust in the hands of
LRMM by the acts of the AMF and this evidence is clear and
unimpeachable, as appears from the amended motion recently filed by the
Sponsors before the Superior Court.
This is the 4th such attempt undertaken by the Sponsors (the 1st before the BDR, the 2nd in the Superior Court , the 3rd before the Court of Appeal and now, the 4th before the Superior Court) and by FFDL over the past 25 months. All
have been contested by the AMF and have necessitated the intervention
of the Court of Appeal to conclude with this 4th attempt.
"One thing is at least true; FFDL and its representatives had not sought
the approval of the AMF, and for good reasons! A strong legal opinion
given to FFDL is of the effect that the acts of FFDL are not under the
jurisdiction of the AMF, but regulated under the Civil Code of Québec",
concluded Mr. Gélinas.
SOURCE Fondation Fer de Lance Sponsors
For further information:
M. Paul Gélinas, Trustee-Executor
For and on behalf of Fondation Fer de Lance
For all information:
Massy-Forget Public Relations
(514) 842-2455 ext. 17