[1] On April 18, 2022[1], the Administrative Tribunal for Financial Markets (“Tribunal”) issued, ex parte, freezing orders targeting the funds, securities and other property of the respondents and certain respondents and those held for them by the financial institutions involved.
[2] The initial freezing orders were issued as part of an investigation conducted by the Financial Markets Authority (“Authority”) against the respondents. This investigation concerns alleged serious breaches of applicable legislation[2], essentially a market manipulation scheme in which the respondents allegedly participated.
[3] These blocking orders have been extended twice since[3].
[4] The Court, on September 28, 2023[4], partially lifted the blocking orders in order to allow the liquidation - at the market price and within 6 months - of six securities held by the respondent Ramy Kamaneh in an account opened with the respondent TD Waterhouse Canada inc. as well as the deposit and conservation of the balance of these cash transactions in this account, all under close supervision by the Authority.
[5] The Authority presented to the Tribunal a request, dated October 5, 2023, seeking to extend the blocking orders currently in force in this case, for a period of 12 months. The Authority alleges that the investigation in the present case is still ongoing and that the reasons which justified the initial blocking orders still exist.
[6] During the pro forma hearing held on October 26, 2023, the respondents' lawyers informed the Court that they intended to contest this request for extension of the blocking orders presented by the Authority. After consulting the parties, the Tribunal has scheduled a pre-hearing conference for November 29, 2023 to plan for the proper conduct of the merits hearing regarding the above-mentioned extension request.
[7] However, as the freezing orders in force in this case expire on November 8, 2023 and, moreover, the Court needs time to render a written decision following the hearing to be scheduled, the Court decides - in order to continue to protect the public interest - to extend these blocking orders on an interim basis until February 8, 2024.
FOR THESE REASONS, the Administrative Financial Markets Tribunal, in the public interest and under Article 93 and 97 al. 2 (3o and 7o) of the Financial Sector Regulation Act[5], sections 249 and 250 of the Securities Act as well as sections 119 and 120 of the Derivatives Act[6]:
EXTENDS on an interim basis the freezing orders it issued on April 18, 2022, as renewed since then, until February 8, 2024, in the following manner, unless they are modified or repealed before expiry of this term:
ORDERS the respondent Ramy Kamaneh and the respondents SDIT inc. and SDÉT inc. not, directly or indirectly, withdraw or dispose of funds, securities or other property that they have in their possession or funds, securities or other property in the possession of another person who has custody, custody or control for Ramy Kamaneh, SDIT inc. and SDÉT inc., notably in the following bank accounts and brokerage accounts:
ORDERS the respondent Ramy Kamaneh and the respondent Doua'a Ismail not, directly or indirectly, to transfer, encumber, alter, destroy and/or alienate the building with the building built on it bearing the civic number [...] ], Montreal (Île-Bizard), province of Quebec, [...], known and designated as lot number [...] ([...]) of the Cadastre of Quebec, in the registration division of Montreal ;
ORDERS the Officer of the Registry Office of the registration division of Montreal to proceed with the publication of the blocking order and this decision relating to the immovable with a building constructed on it bearing the civic number [.. .], Montreal (Île-Bizard), province of Quebec, [...], known and designated as lot number [...] ([...]) of the Cadastre of Quebec, in the registration division of Montreal;
ORDERS the respondent Toronto Dominion Bank Inc., having a branch at 3720, boulevard des Sources, in the city of Dollard-des-Ormeaux, province of Quebec, H9B 1Z9, not to dispose of, directly or indirectly, the funds, securities or other property that it has on deposit or of which it has custody or control for the respondent Ramy Kamaneh and the defendants SDIT inc. and SDÉT inc., notably in the following bank accounts:
ORDERS the respondent TD Waterhouse Canada inc., having a place of business at 7250, rue du Mile End, 6th floor, in the city of Montreal, province of Quebec, H2R 3A4, not to dispose of it, directly or indirectly, funds, securities or other property that it has on deposit or of which it has custody or control for the respondent Ramy Kamaneh and the defendants SDIT inc. and SDÉT inc. notably in the following brokerage accounts, with the exception of the terms provided for the account [...] in the agreement ratified by the Court in decision no. 2022-010-004 of September 28, 2023 [7]:
ORDERS the respondent Scotia Bank, having a branch at 3828, boulevard de la Côte-Vertu, in the city of Montreal (Saint-Laurent), province of Quebec, H4R 1P8, not to divest, directly or indirectly, funds, securities or other property that it has on deposit or of which it has custody or control for the respondent Ramy Kamaneh and the defendants SDIT inc. and SDÉT inc., notably in the following bank accounts:
ORDERS the defendant Nour El-Chafei not to, directly or indirectly, withdraw or dispose of funds, securities or other property in the bank accounts bearing the numbers [...] and [...] with the indictment Royal Bank of Canada having a branch at 3131, boulevard de la Côte Vertu, room F-1, in the city of Montreal (Saint-Laurent), province of Quebec, H4R 1P8;
ORDERS the respondent Mohamed Kada Mesli not, directly or indirectly, to transfer, encumber, alter, destroy and/or alienate the building with the building built on it bearing the civic number [...], in the city of Montreal ( Saint-Laurent), province of Quebec, [...], known and designated as lot number [...] ([...]) of the Cadastre of Quebec, in the registration division of Montreal;
ORDERS the Officer of the Registry Office of the registration division of Montreal to proceed with the publication of the blocking order and this decision relating to the immovable with a building constructed on it bearing the civic number [.. .], in the city of Montreal (Saint-Laurent), province of Quebec, [...], known and designated as lot number [...] ([...]) of the Cadastre of Quebec, in the registration division of Montreal;
ORDERS the respondent Royal Bank of Canada, having a branch at 3131, boulevard de la Côte-Vertu, room F-1, in the city of Montreal (Saint-Laurent), province of Quebec, H4R 1P8, not to dispose of, directly or indirectly, the funds, securities or other property that it has on deposit or of which it has custody or control for the respondent Mohamed Kada Mesli, 7350341 Canada inc. and Auriga ERP Consulting inc., notably in the following bank accounts:
ORDERS the respondent Royal Bank of Canada, having a branch at 4119, rue Jean-Talon Est, in the city of Montreal (Saint-Léonard), province of Quebec, H1S 1J5, not to divest, directly or indirectly , funds, securities or other property that it has on deposit or of which it has custody or control for the respondent Mohamed Kada Mesli, 7350341 Canada inc. and Auriga ERP Consulting inc., notably in the following bank account:
ORDERS the respondent RBC Placements en Direct inc., having a branch at 1, Place Ville-Marie, ground floor, in the city of Montreal, province of Quebec, H3B 3Y1, not to divest, directly or indirectly, funds, securities or other property that it has on deposit or of which it has custody or control for the respondent Mohamed Kada Mesli, 7350341 Canada inc. and Auriga ERP Consulting inc., notably in the following brokerage accounts:
ORDERS the Financial Markets Authority to notify the parties and, where applicable, their lawyers of this decision.
