The former president of the Planète Poutine brand was arrested by the Sûreté du Québec for having orchestrated, with the help of a corrupt notary, a series of frauds totaling more than 20 million dollars. Lenders, including a judge of the Court of Quebec, were considering investing in real estate projects, often intended to accommodate fast food chains. Their money, however, was allegedly embezzled by the suspects.
What there is to know :
- Five suspects are accused of defrauding more than $20 million by seeking loans to set up gas stations and fast food restaurants near major roads.
- The money would have been embezzled. Lenders, including a judge, lost significant amounts of money.
- A notary is among the accused and would have given a legal veneer to the scheme, according to the police.
Benoit Charron, who acquired the Planète Poutine brand in 2015 before retiring from the company in 2022, was formally accused of fraud at the expense of several lenders and investors on Wednesday at the Laval courthouse. Former Laval notary Pierre Aubin, who according to the police played a central role in the fraud by drawing up notarial deeds to rob the victims, was also arrested and accused. Same thing for Mickael Voyer, a collaborator of the group.
Two other suspects are the subject of an arrest warrant, but have not yet been arrested, according to documents filed in court. These are Olivier Gaudet, a former employee of Planète Poutine who would have served as a nominee, as well as the promoter Jean-François Désormeaux, considered to be the leader of the fraud.
Eight years of investigation
The police investigation, begun in 2015, was named Project Oribus, in reference to the ancient French candles that Honoré de Balzac evoked in his novels. It was carried out by specialists from the Organized Financial Crime Investigation Division of the Sûreté du Québec, who had themselves been alerted by the Financial Markets Authority.
“Between April 2014 and January 2017, the suspects illegally appropriated funds, estimated at several million, which were to be used for real estate developments,” the police force said in a press release. None of the police allegations have been proven in court at this stage.
According to the affidavit of an investigator filed at the courthouse in order to obtain a court order in this case, the group of suspects had gotten their hands on around twenty lots intended for real estate projects, often near provincial roads, in places like Brompton, Sainte-Julienne, Trois-Rivières, Saint-Charles-Borromée, Saint-Esprit and Saint-Lin.
“All transactions related to land are notarized and the notary handling the majority of these transactions participates in the fraudulent scheme,” specifies the police officer.
According to the investigation, the promoter Jean-François Désormeaux solicited investors who had money to lend for real estate projects. There was talk of installing gas stations or fast food restaurants on these strategically located lands. Mr. Désormeaux mentioned discussions with Tim Hortons, Subway and Ultramar. He installed posters on his land with the Planète Poutine logo and soliciting franchisees wishing to open Valentine, Thaïzone or Cora restaurants.
PHOTO FROM FACEBOOK
The promoter Jean-François Désormeaux is the subject of an arrest warrant.
The lenders’ debt was supposed to be secured by a mortgage on the land. But development almost never materialized. Several lots had been purchased for much more than their real value.
Through a complex set of notarized transactions, the debts were modified, transferred to other land of little value, relegated to second or third place, exchanged for shares of shell companies by the fraudsters.
It became impossible for lenders to repay themselves by foreclosing on the land when they realized something was wrong. “Private lenders therefore find themselves without any guarantee,” summarizes the investigator.
Various players in the scheme also declared bankruptcy when the lenders tried to recover their money.
Police believe some of the money was used to purchase luxury cars and jewelry. A residence in Florida belonging to Benoit Charron and estimated at 4.8 million was also hit by a blocking order with the help of the American authorities.
A notary who inspired confidence
According to court documents, one of the cheated lenders is Quebec Court judge Manlio Del Negro. While he was a lawyer, in 2015, he and his wife agreed to finance one of the suspects’ real estate projects.
One day, the couple was informed that Mr. Del Negro’s wife had apparently signed a release deed for her claim on the land, in the presence of notary Pierre Aubin. The woman swore she would never have knowingly done such a thing.
“He told me the main points. He said to me: “You have to sign here.” I trusted him because he is a notary,” she testified as part of a civil action to try to recover her money.
“We trusted a notary, there, anyway. He has certain duties! “, she explained.
Another lender, Gaston Leduc, also explained to the police that he had relied on the notary, who inspired trust, according to the summary written by the investigator.
“He always told me that they looked like great projects, that there seemed to be great potential. In the end, I was transferred without having checked, I trusted what I was told, and the fact that everything was notarized gave me confidence,” he said.
Notary Pierre Aubin has since been accused of disciplinary offenses by his professional order and has left the profession.
When confronted by lenders worried about never seeing their money again, Benoit Charron could respond sharply by denouncing their “deplorable relentlessness” towards him, according to the police officer’s statement.
“Be advised [sic] that we have no intention of continuing with this [sic] be harassed by you,” he allegedly wrote to one of them.
The case will return to court on January 18.