INVESTMENTS RELATING TO EFFECTIVE CONTROL TRANSPORT (ETC)
PERSONS INVOLVED
17.
ETC is a company incorporated under the laws of Delaware developed a detection system of vigilance (detection of fatigue), including truck drivers, whose name is Cognitive Resources Availability Manager (CRAM);
18.
At the time of the crime, Rachel Huppe was the sole director, president and secretary of the company ETC, as appears from the report Cidreq Registrar of companies;
19.
Next Exhibit D-11, Rachel Huppe is domiciled in 4575, Sir Wilfrid Laurier, Suite 201, Saint-Hubert, J3Y 3X3;
20.
Next D-11, ETC offices are also located in Quebec in 4575, Sir Wilfrid Laurier, Suite 201, Saint-Hubert;
21.
However, according to information obtained by the investigator Huppe (Raphael) have moved offices CTE 1010 Sevigny, Suite 200, having been led to do, rent payments with several months of delay;
22.
The shares are traded on the ETC OTC Pink Sheets Electronic OTC Markets (PINKSHEETS ") under the symbol CFFS: OTO.;
23.
ETC has established a subsidiary in Québec, namely Effective Control Transport Corporation (ECTC) Huppe which was the sole director, president and secretary, as appears from the report Cidreq Registrar of companies;
24.
As appears from Exhibit D-12, Huppe is domiciled in 4575, Sir Wilfrid Laurier, 201 apartments in Saint-Hubert, J3Y 3X3, the same address as that identified for Rachel Huppe which was discussed above ;
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25.
Manon Chiasson (Chiasson), Huppe's spouse at the time, is the sole director of the respondent Effective Control Corporation, which is also known as ECC Networks Corporation ("ECC Networks"), as appears from the report Cidreq Registrar of companies;
26.
The offices of ECC Networks are designated as being at the same address as those of ECC and ETC, as appears from the reports Cidreq;
27.
The activities of ECC Networks are designated as being in the computer field, either: "sale and installation of computer network, computer training;
28.
Chiasson has never been registered with the Autorité des marchés financiers ("AMF") in any capacity whatsoever, including as adviser or broker, as appears from the certificates of Law practice alleged in a bundle;
29.
ETC, ECTC and ECC have never filed a visa application of a prospectus or prospectus exemption from the Authority and are not registered with it in any capacity whatsoever, as appears from the certificates confirming this information;
FACTS
30.
In May 2009, as part of an ongoing investigation, investigators from the Authority have met with shareholders who accused ETC Huppe particular for having provided false or misleading information in proceeding with the placement of shares of CTE ;
31.
The investigation revealed the following:
Investments made in 2007 and 2008
1.31
Based on information obtained during the investigation, during the years 2007 and 2008, Huppe have made the investment shares of CTE with forty (40) investors in Quebec;
2.31
These people have invested a total sum of one million four hundred and ninety eight thousand (1,498 000.00 U.S. dollars) for the acquisition of more than 26 million shares of ETC;
3.31
Huppe have mentioned several of these investors that the securities would soon CTE will be traded at the TSX Venture Exchange ("TSX-VE");
4.31
No prospectus or other disclosure document would have been returned to investors;
Investments made between May 2008 and June 2009
5.31
Between May 2008 and June 2009, Huppe would have made placement of 58,670,270 shares of ETC for a total of 416 025.00 U.S. dollars from hundreds of investors in Quebec, as appears from a list investors;
6.31
Among these investors, many told the investigator that the titles of CTE should be listed on the Stock Exchange TSX to 15 June 2009 and then modify the deadline for the end of July 2009, and finally, to modify again for the end of September 2009;
7.31
Huppe they mentioned that the registration should be done through a reverse takeover involving other companies is: Vigil Locating Systems Corporation
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("Vigil") and Axyomm Technologies Corporation ("Axyomm"), a company whose reports are alleged Cidreq
8.31
On July 18, 2009, Huppe has organized a meeting in a room in a hotel and a quarantine of shareholders of ETC attended;
9.31
At this meeting, Huppe was explained that as part of the transaction, they had to sign a new subscription agreement to replace the shares previously issued by ETC;
31.10
This new agreement was the acquisition of shares of Axyomm or the company would be listed on the TSX-VE;
31.11
Huppe said some of those shareholders that, upon registration of the title Axyomm TSX-VE, the title should be trading at about 0.12 per share, while the price paid by Axyomm of shares acquired was $ 0.01;
32.
On September 10, 2009, Huppe has been a bankruptcy order, retroactive to May 15, 2009, as appears from the certificate of the filing of a bankruptcy order and the docket of the Court file numbered 505-11-009993-093;
33.
In early December 2009, investigators met with the Authority a score of persons who acquired shares of ETC in 2009 through Huppe and they have collected the following information:
33.1
In November 2009, Huppe told them that he would repay them with post-dated checks in January and February 2010;
33.2
Some have been offered more shares of a new company in lieu of a refund;
33.3
Huppe told them that, as he had found "Saudi investors" to invest in his new company, then it could repay existing investors ETC;
33.4
Some investors have received in late December 2009, a letter signed by a man named Ely Beroutz Jamil Global Investment - Saudi Arabia Main Office, which reads as follows:
"Lebanon, December 21, 2009
To all investors CFFS,
In the envelope you just received, this is a check in the amount of your initial investment (sic) in the enterprise Effective Control Transport Inc.. We pay all amounts you have invested in the company through our Canadian partner, Effective Control Corporation. Effective Control Corporation will become the owner of the certificate that you have in your possession after cashing the enclosed check.
Endorsement of the certificate and the signature of documents will be made and sent by fax (sided copy of the certificate) up to 1 week before the date of receipt of the check. Detailed instructions and required forms will be mailed by January 15, 2010.
Anybody get a check from Beroutz?
Interesting twist to this with the Middle East connection....
I Guess RH never will learn........
I sincerly hope the ECT RECOVERY TEAM can perform a small miracle here & bring the CRAM to the Market......
AI
