An Investors Group advisor is suspected of taking advantage of the inheritance of one of his 93-year-old clients to buy luxuries, including a $72,000 boat and an RV.
Roger Tremblay would have received hundreds of thousands of dollars from a client by abusing his trust and acting with dishonesty, according to the Autorité des marchés financiers (AMF).
The government agency intervened urgently on December 23 in this file, because even the physical integrity of the lady would have been at stake. Her financial adviser would have the intention of having her admitted to a public CHSLD, claiming that she can no longer afford to live in a private residence.
According to the procedure brought by the AMF, Tremblay would have already spent $654,009 of the money entrusted for things that have nothing to do with the care and accommodation of the lady. More than $250,000 would have gone straight into his pocket in fees and other costs.
Charitable donations of up to $80,000 are also considered problematic.
In particular, the AMF requested a blocking order on Tremblay’s assets “to prevent the sums of money obtained without right from being squandered during the duration of the investigation”.
On December 30, the Financial Markets Tribunal partially granted the AMF’s requests and granted the blocking orders. Tremblay also had his client’s file access rights revoked.
Unjustified expenses
A 2019 BMW X2 vehicle, a 2006 Harley-Davidson FLSTF motorcycle, a 1997 PACE 36S recreational vehicle, three trailers, a building in Quebec City and bank accounts belonging to Tremblay are subject to the restraint orders.
According to the Financial Markets Constable, “the AMF’s investigation suggests that Tremblay carried out his activities as a representative in a dishonest manner and did not act with the integrity required for the exercise of such functions” .
$1 million received
The AMF’s appeal explains that Tremblay’s client would have received from her husband a sum of more than a million dollars in a trust upon his death in 2011.
However, barely two days following the death, Tremblay would have concluded an agreement stipulating that he would receive $15,600 per year to provide, among other things, three hours per week of financial planning.
In subsequent years, his fees rose to $72,000 per year, a much larger amount than had been negotiated in the contracts.
Despite the extent of the inheritance received, worries the AMF, Roger Tremblay would have started to say that the lady would not have enough money to stay in the private residence for the elderly where she lives.
Balance of $500,000
“It is reasonable to believe that an emergency intervention is necessary in order to avoid harming the physical and financial integrity of [la cliente], Tremblay having announced the intention to move her to a CHSLD, because of the latter’s financial resources which he describes as “limited”, while the trust has a balance of nearly $500,000,” alleges the AMF.
► On January 6, a notice of contestation of the decision rendered on December 30 was filed by lawyer Jacques Lapointe. The case returns to court today for a request for partial lifting of one of the blocking orders.
SPENDING UNDER THE MAGNIFYING
Charitable donations
Immediately following the death and before the funeral of his client’s husband, Roger Tremblay reportedly donated $80,000 to organizations for which another Investors advisor, Valmond Santerre, is a representative. “Such an amount of charitable donations exceeds, even is disproportionate, in view of the donation habits of previous years”, underlines the Autorité des marchés financiers. This is all the more worrying, according to the AMF, since “these donations do not seem […] respect the wishes expressed by [le mari de la dame] under his will.
Condo
A condo was acquired in 2017 for nearly $465,000. Tremblay’s client lived there for three years. It was subsequently resold for $560,000 in 2020. “The AMF investigation is continuing to find out what happened to the amount of the sale.
RV
Courtesy screenshot
Roger Tremblay acquired in 2012 a recreational vehicle in his personal name to replace his 21-foot RV. This purchase would have been made with the money of the trust on the grounds that his client had expressed the wish. The vehicle was put up at a campsite where she would have hardly been since 2014, however. The vehicle has reportedly been put up for sale, but is still owned by the financial adviser.
Boat
Photo courtesy, Bayliner Brochure
A $72,000 boat was acquired in 2015 for the octogenarian lady with funds from the trust. According to the AMF procedure, Tremblay indicated that the goal was to make a “change with the gloomy atmosphere of his apartment in downtown Limoilou [à Québec] ».
Photo courtesy, Bayliner Brochure
However, the owner of the boat on paper is Roger Tremblay. Numerous costs of $138,674, related to this boat, were also assumed by the trust, in particular its registration with the Yacht-Club de Québec.
Known planner at Investors also implicated
A well-known financial planner at Investors, Valmond Santerre, is also implicated in Roger Tremblay’s case.
Screenshot taken from Investors website
Valmont Santerre, Financial Planner
“The Authority [des marchés financiers] is concerned regarding Santerre’s involvement in the management of the trust’s assets [de la cliente] “, notes the AMF in the procedure.
According to the investigation, Santerre would indeed act as a financial planner and “shareholder” of charitable organizations for which large donations were made from the sums of the trust held by the 93-year-old client.
Santerre is the head of the Valmond Santerre team, which includes Roger Tremblay.
“The AMF has reason to believe that Santerre does not have the independence required to continue to manage the investment accounts of the [fiducie de la cliente] or those of [la cliente] “, Alleges the AMF.
Access suspended
The organization obtained from the Financial Markets Court at the end of December that Santerre’s access rights to any file concerning this lady and that her trust be suspended. The Court also ordered that a new representative who is not part of the team be assigned.
Without commenting directly on the situation, a spokeswoman for Investors Group, Lara Berguglia, told us that she was collaborating.
“We are cooperating fully with the AMF’s investigation into these allegations. »
What is Investors Group?
It is a company controlled by Power Corporation through Power Financial’s 61.8% interest in IGM Financial. Since 2018, Investors Group has been officially called IG Wealth Management. At the end of 2020, the company declared assets under management of $103.3 billion.
