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by Mike Caswell

The U.S. Securities and Exchange Commission has won $7-million in penalties against Quebec's Jean-Francois Amyot. (All figures are in U.S. dollars.) A Boston judge has found that he orchestrated a "complex and long-lasting fraud" to manipulate Spencer Pharmaceutical Inc., arranging a bogus $245-million takeover offer for the company in 2010. The offer boosted the company to 60 cents, and Mr. Amyot sold millions of shares, the judge has found.

The penalty is contained in a default judgment released on Wednesday, Sept. 30, by District Court Judge Indira Talwani. The $7-million in sanctions she has imposed includes disgorgement of $5.1-million in gains, plus interest, and a $750,000 civil penalty. The amounts are shared between Mr. Amyot and two private companies he controlled, Hilbroy Advisory Inc. and IAB Media Inc. In addition to the financial penalties, the judge has permanently barred Mr. Amyot from penny stocks and from serving as an officer or director.

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