Quebec-based CTIC, CITCAP file for bankruptcy

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Times & Transcript Staff

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FREDERICTON - New Brunswick investors who had dealings with two Quebec-based financial companies are being urged to seek professional advice from lawyers or accountants after the two companies filed for bankruptcy.

CTIC and CITCAP, which sought bankruptcy protection on June 22 (and as a result are under the control of a bankruptcy trustee in Quebec) were already under investigation by the New Brunswick Securities Commission. The companies had previously admitted to wrongdoing in conducting business in New Brunswick without going through the proper channels.

An investigation earlier this year, carried out by the NBSC, found that CTIC and CITCAP didn't comply with New Brunswick securities laws in selling investments. CTIC and CITCAP didn't acquire proper registration or disclosure requests for conducting business inside the province.

An investigation by the NBSC staff revealed the company sold securities in New Brunswick on 109 occasions to 63 individuals for a total worth of $5.7 million between 2006 and 2008. Investors were mostly from the Edmundston and Grand Falls area, but also from Moncton area, the Acadian Peninsula region, as well as Saint John and Fredericton.

Patrick Gauthier, the principal of both CTIC and CITCAP, is further prohibited from becoming or acting as a director or officer of any issuer, registrant or mutual fund manager until the NBSC's investigation is complete and there has been a final decision in this matter.

In addition to calling a professional lawyer and accountant, investors in these companies are also being asked to call the NBSC directly at 1-866-933-2222 if they have questions or concerns.

The NBSC is a Crown corporation that regulates the securities industry inside the province.