Quebec regulators sue Norbourg's founder for $94 million

Quebec's main securities regulator on Monday launched a $94-million lawsuit against Vincent Lacroix, the founder of the Norbourg group of companies, accusing him of misappropriating millions from the Montreal-based money management firm.

The Autorit des marchs financiers (AMF) is claiming $84 million from Lacroix for losses incurred by investors and $10 million in punitive damages.

The lawsuit is especially noteworthy because the AMF is suing on behalf of investors something regulators almost never do.

In a release, the AMF claims Lacroix misappropriated $84 million from various Norbourg and Evolution mutual funds. "Some $18 million of these funds was used for his own personal benefit," the AMF said.

"The suit is one of several other recourses that the AMF will launch as its ongoing investigation produces strong and sufficient evidence," it said.

A regulatory report sent to Quebec's finance minister Monday is recommending the liquidation of the remaining assets of the Evolution and Norbourg families of funds. A criminal investigation has been launched.

Quebec's market regulator froze Norbourg's assets in August after it announced that Norbourg and related companies were under investigation for allegedly defrauding more than 9,000 investors, most from Quebec. A later audit revealed a $130-million discrepancy.

Lacroix has not been charged and has denied doing anything wrong.