Norbourg founder denied legal aid for fraud charges

The former head of Norbourg investments wont go to trial on fraud charges until spring 2007 because hes having trouble paying his legal bills.

Vincent Lacroix, the founder and former chief executive of Norbourg Asset Management Inc., faces 51 charges of swindling investors of more than $130 million.

His lawyer, Gilles Thibeault, says Lacroix is broke and cant afford to pay for his services. The former CEO was declared officially bankrupt by a Quebec judge in May, and had sought legal aid to fight the fraud charges against him.

But a Quebec court refused to grant Lacroix legal aid, for undisclosed reasons. That decision leaves the businessman in legal limbo, said his lawyer, who is appealing the courts ruling.

Were still waiting for a decision to be rendered on this, said Thibeault. For the time being, he has no mandate. And I cant act without a legal mandate from legal aid.

Lacroix has until October to appeal the legal aid decision. That delay will suspend the start of his fraud trial until next spring.

51 charges laid

Quebecs main financial regulator laid 51 securities charges against Lacroix in March 2006, after it spent months investigating Norbourgs financial transactions.

LAutorit des marchs financiers had discovered a $130-million gap between Norbourgs records and its actual assets.

The regulator accused Lacroix of misappropriating money from the company, and in a rare move, sued the former CEO for $94 million, on behalf of investors.

About 9,200 people, mostly Quebecers, had invested in the Montreal-based money management firm.

The charges against Lacroix carry a maximum penalty of five years less a day in jail, or a fine of up to $5 million.