Fondation Fer de Lance disputes the new false allegations

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, 2009.

"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, is available.
  • 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 allegations.
  • 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. Gélinas.
  • 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:
Mylène Forget
Massy-Forget Public Relations
(514) 842-2455 ext. 17

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Fondation Fer de Lance Sponsors

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