Thursday, October 28

SNC-Lavalin Drops After Canada Police Lay Fraud, Forgery Charges


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(Bloomberg) — SNC-Lavalin Group Inc. and two former executives at the Montreal-based engineering firm were charged in Canada with fraud and forgery, sending its shares lower.

In a news release Thursday, the Royal Canadian Mounted Police said “two Quebec men have been arrested and a number of charges laid, including fraud against the government, fraud, forgery and conspiracy, in connection with a lengthy and comprehensive criminal investigation.”

SNC didn’t immediately reply to a request for comment. Shares fell as much as 3.3% in Toronto trading, and were down 2.2% to C$36.13 at 10:11 am

The charges were announced as the company sought to move past legal troubles that set off a Canadian political scandal and were settled in 2019. It has picked a new chief executive officer, reorganized and announced an asset sale in an effort to get a fresh start.

Normand Morin, a former vice-president of SNC-Lavalin, and Kamal Francis, a former vice-president at SNC-Lavalin International Inc., were arrested on Sept. 23 and released from custody, the police said.

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