March 14, 2018 13:30
Photo : Freepik
Companies Association of Hospitalization Canassurance (Québec Blue Cross) and Canassurance insurance company, and certain of their officers, were sentenced to administrative penalties totaling $ 2.32 million dollars ($M) in connection with schemes of misappropriation of funds put in place by the two employees between 2009 and 2013.
In the opinion concerning Marc Lamirande, one of the leaders of the companies, thefinancial markets Authority explains that an executive has made a bank transfer in foreign currency to an account of the company for the acquisition of a residence, without the knowledge of M. Lamirande. The amount has subsequently been repaid.
It receives an administrative penalty of $ 20,000 for having counter-signed the transfer request and for failing to correct about wrong held by members of the senior management of the company during the work monitoring of the company by the Authority.
$ 1 Million penalty for the former CEO
The former president-director general of companies, Claude Boivin, is seen to impose an administrative penalty in the amount of one million dollars for not having acted with care, diligence and skill, honesty and loyalty in the part of the records of misuse of funds.
It has also hindered the work of the supervisory Authority and has misled, or attempted to do so by providing information that he knew to be false in relation to the dismissal of the employees involved in the scheme.
The former chairman of the boards of directors also blamed
Also, André Brosseau, at the time chairman of the boards of directors of the Association of Hospitalization Canassurance and Canassurance insurance company, receives an administrative penalty in the amount of $ 300,000. The Authority accused him of failing to act with care, diligence and skill in the interest of the companies was the misuse of funds.
The Authority also said that Mr. Brosseau has not acted with honesty and loyalty, and when he received the fees unwarranted and not the authorities, and have paid bonuses, unjustified and unauthorized to the president and ceo of the companies.
Administrative Sanctions in the companies to control deficient of the CEO
The companies and the Authority have agreed to an agreement according to which they have paid administrative penalties of $ 500,000 each to have left in place a structure such as to render ineffective some of these mechanisms due to, inter alia, the control of ubiquitous deficient of the president and general manager of the times and the breaches committed by the latter.
«This structure limited the implementation and application of a formal framework of operation, supervision, and accountability through policies, procedures and information systems which would have contributed to the management of the companies and to ensure their control,» says the Authority.
Adoption of measures to remedy deficiencies
The Authority stresses, however, that the companies have adopted measures to address these failings and that they have voluntarily entered into commitments in respect of the alleged misconduct. They are committed to revise the organizational structure and to put in place a plan of action in order to comply with their obligations.
The creditworthiness of the companies and the sums which they have been entrusted by consumers have not been impacted by the facts and the alleged misconduct.
Think about the vision
In February 2016, Louis Gosselin became chairman of the boards after Claude Boivin has been laid off from this position. Mr. Gosselin became Acting president and CEO of Blue Cross in October 2016 and has put in place governance measures » in order to make people more accountable «.
«This case has allowed us to reflect on our vision and our mission, and then to initiate a culture change, where leaders are more accountable to the boards of directors «, he said in an interview in the Journal of the insurance.