This case has been before the courts for more than four years. The infraction reports against Dominic Lacroix and his PlexCoin were served in June 2020.
In December 2023, after a lengthy trial, Lacroix was found guilty of two counts of investing without a prospectus, in addition to an offense of providing false or misleading information to its investors.
Judge Steve Magnan concluded that Lacroix was the mastermind behind the PlexCoin project. He cheated thousands of investors out of nearly $15 million. The global cryptocurrency created by the accused was to offer up to 1354% return in 30 days: an “improved version” of Bitcoin.
His claims were lies, pawns in Lacroix’s fraudulent scheme. He claimed that PlexCorps was run in Singapore, with a team of finance and cryptocurrency experts.
He promised profits thanks to a virtual wallet approved by the authorities. In reality, the businessman used investments to his advantage in order to live richly, treating himself to a house, cars and a life of luxury.
On Thursday, Judge Magnan imposed his sentence; a harsh sentence for serious charges that undermine the integrity of financial markets.
The prison
Judge Magnan was to deliver his sentence at 9:30 a.m. at the Quebec courthouse. However, the main person concerned was not present. Lacroix was connected by videoconference, saying he had “intestinal problems”.
His presence at the palace was nevertheless obligatory, just as his incarceration was possible. Judge Magnan gave him one hour to be present in the courtroom, speaking to him in a firm tone.
The Financial Markets Authority believes that prison was necessary to send a strong message of deterrence. (Judith Desmeules, The Sun)
The accused finally showed up at the courthouse. After Judge Magnan pronounced the sentence, the man was incarcerated.
The Financial Markets Authority (AMF) says it is very satisfied with the decision. She believes that prison was necessary to send a strong message of deterrence.
She had suggested five years of detention, in addition to six million in fines.
Lacroix’s defense suggested hours of community service to repay four million dollars in debt. She wanted her client to avoid prison; this suggestion was quickly brushed aside by Judge Magnan.
Through a “sophisticated plan,” Lacroix lied to thousands of people around the world in order to profit from their money. The creative plan was made popular by announcements on the social network Facebook and various websites.
Lacroix hired around ten people to help him, they knew nothing of the illegality of PlexCoin, never approved by the AMF.
Lacroix allegedly embezzled at least four million dollars into his personal accounts. He orchestrated this whole thing knowing it was a crime. The man had been convicted of fraud and contempt of court in the past, making him a repeat offender.
The accused never testified for his case, neither at trial nor at sentencing submissions. The court therefore does not know his situation. He claims to have been living off his mother’s financial support since the accusations, as all his assets are under a state freezing order.
Judge Magnan therefore did not include any mitigating factors in his decision. The 42-month sentence is therefore very close to the prosecution’s suggestion.
Given the long period of detention, Judge Magnan did not impose the millions in fines on the offender. However, the AMF believes that the prison sentence was the most important element, with the minimum fine of $150,000 being sufficient in the context.
Accomplices
Lacroix’s accomplice, his friend Yan Ouellet, was the information technology director of PlexCoin. Also found guilty of fraud, he avoided detention in his case. The court imposed fines totaling $400,000 on him.
The AMF waived a prison sentence in its case, as Ouellet is already detained in the United States, awaiting another trial for fraud.
Lacroix’s wife had also been accused of several fraud offenses, but she was acquitted by Judge Magnan.
