Quebec lays 51 charges against Norbourg founder

Quebec's top financial regulator has laid 51 securities charges against Vincent Lacroix, founder of the investment fund company Norbourg.

L'Autorit des marchs financiers, which has been investigating Norbourg, and previously sued Lacroix on behalf of investors, said 24 of the charges relate to false or misleading information and 27 relate to manipulating mutual fund values.

There is a $130 million gap between the amounts Norbourg had on its books and what investigators have been able to find.

Regulators have accused Lacroix of taking money from Norbourg or its funds, a charge he has denied.

About 9,200 investors, mostly from Quebec, put money in Norbourg.

"Vincent Lacroix diverted the money of thousands of investors," and is not co-operating, while claiming to be a victim, Jean St-Froze, head of the authority, said in a news release.

The regulator froze Norbourg's assets in August 2005 after it announced that Norbourg and related companies were being investigated.

Norbourg was placed in bankruptcy protection in October, and later that month, the authority sued Lacroix for $94 million.

The RCMP is investigating.

The charges were laid Thursday in Quebec's provincial court. Each offence carries a maximum penalty of five years less a day in jail or a fine of up to $5 million.