Carole Morinville: another Quebec financial predator

For the past 22 years, Carole Morinville was a well-known financial planning consultant and insurance representative. Among her clients were several major Quebec artistic figures. Despite the fact that Carole Morinville was an unlicensed securities adviser, she was a representative for Manulife Financial Canada. Her agency, Agence Carole Morinville was located in Sherbrooke (QC) and was specialized in financial planning. Despite her success, Carole Morinville had decided to join the rank of Quebec most notorious financial criminal, such as Vincent Lacroix, Bertram Earl Jones, Stevens Demers, Henri-Paul Rousseau, Josie Cioffi… just to name a few.

Carole Morinville and the Financial Markets Authority of Quebec province (Autorité des Marchés Financiers (AMF))

In August 2010, the Autorité des Marchés Financiers (AMF) decided to suspend the financial activities of Carole Morinville, a former graduate from the University of Québec, Montréal campus in financial administration. Carole Morinville had been suspected of running a scandalous Ponzi scheme – same financial fraud that been repeated before her by Bernard Lawrence "Bernie" Madoff and Bertram Earl Jones.

Between 2007 and 2010, Carole Morinville had raised more $1.4 million from 27 investors. To one of her famous clients, Karine Vanasse, a Quebec actress, Carole Morinville had promised a minimum return of 5% on her investment. Karine Vanasse had signed a $125,000 cheque at the business name of Carole Morinville. Other than her financial business, Carole Morinville was running with her husband of 2009 Robert Diano, a bagel company that was operating under a false address. Her bagel business was known under different name: Boîte Bagel MTL, Mtl Bagel Box, Mtl Bagel Cie and Mtl Bagel Co. In result of the Ponzi scheme operated by Carole Morinville, Karine Vanasse and 27 other investors had lost their investments.

Where’s the money invested by Carole Morinville?

Beginning August 2010, all of Carole Morinville assets were frozen by Quebec's securities regulator name the Autorité des marchés financiers in Quebec province. Seem like Carole Morinville was living under heavy debt. On August 25, 2010, shortly after being accused of running a Ponzi scheme, Carole Morinville declared bankruptcy.

The Autority had frozen a total of 3 banking accounts, for a total of $1 070. Carole Morinville RSP account had been discoved empty. The ex-Financial Manuvie representative had a balance of $43 244 on her American Express and $12 241 on her Visa credit card. What it is known and declared as Carole Morinville assets worth around $350 000. We are quite far from the $1.4 million that had been extorted from the investors who had deal with Carole Morinville. Where went the money? At this point of the investigation, it’s not clear where the money had been deposit. It’s been reported that between 2000 and 2010, Carole Morinville had traveled overseas. So far, it’s seem like the money had been spend by Carole Morinville to cover personal expenses – just like Bernard Madoff did before her. But guess Carole Morinville didn’t learn anything from Bernard Madoff case. Perhaps, maybe she never heard of Bernard Madoff…

In March 2009, Bernard Lawrence "Bernie" Madoff, former chairman of the NASDAQ stock market, had pleaded guilty of 11 federal wealth management business crimes. In this Ponzi scheme, $65 billion had been loss. TV personalities and many foundations had to deal with major devastations. While conducting his criminal activities, Bernard Madoff was frequently enjoying $65 haircuts and $50 pedicures on his clients’ investment money. Bernard Madoff is currently serving 150 years in prison at the Federal Correctional Institution Butner Medium.

Previous accusations against Carole Morinville

This is not the first accusation filed against Carole Morinville. Prior to 2010, Carole Morinville had been irradiate in 1996 by the Autorité des marchés financiers. More recently in October 2009, the Quebec actor Denis Bouchard had filed a lawsuit against Carole Morinville. Denis Bouchard had been giving false information related to an insurance policy. Carole Morinville had than been suspended for one month and had to paid more than $27 000 to Denis Bouchard.

We hope that the victims of Carole Morinville will be as lucky as Denis Bocuhard and we would like to see the Autorité des marchés financiers reimbursed the money loss to the 28 investors. In this case, the incompetence of the Autorité des marchés financiers is obvious.

The Autorité des marchés financiers (to be name Financial Markets Authority despite no official translation) is supposed to be the institution that regulates securities in the province of Quebec.