The RCMP conducted searches at Lion Electric facilities in Saint-Jérôme, Quebec, starting around 10 a.m. Wednesday, as part of an ongoing investigation into alleged investment fraud tied to the company’s past operations.
RCMP spokesperson Corporal Martina Pilarova said the force received complaints from more than a hundred investors and opened the investigation in February 2025. She said the searches, which could last several days given the size of the facilities, relate to “past activities of the company” and are not targeting the business under its current ownership. No arrests or charges have been made at this stage, according to Pilarova.
A Company Rebuilt After Bankruptcy
Lion Electric, an electric school bus manufacturer, filed for creditor protection under the Companies’ Creditors Arrangement Act at the end of 2024 due to financial difficulties. The company was acquired by a group of Quebec businesspeople in the spring of 2025.
The company and its former executives are named in a class-action lawsuit filed by small investors who say they were misled while the company was publicly traded. Those shareholders claim they lost their investments based on information provided by former company executives. The Quebec government, which had backed Lion Electric’s push into battery manufacturing, reported losing $140 million.
Insider Trading Penalty Preceded the Raid
Days before the RCMP searches, the Autorité des marchés financiers announced on October 13 that it had reached an agreement with an investor, Claude Roy, following an investigation into the alleged communication and use of privileged information related to Lion Electric securities, in violation of the Securities Act.
The Financial Markets Administrative Tribunal endorsed the agreement, which imposed an administrative penalty of nearly $1.11 million on Roy and barred him from trading on financial markets or working in the sector for two years. According to the AMF, Roy admitted to trading Lion Electric shares in November and December 2024 while possessing privileged information about a process to acquire the company and its planned creditor protection filing. The AMF said Roy carried out nine share sale transactions that allowed him to avoid a loss of nearly $800,000.
Current Owners Distance Themselves
Lion Electric issued a statement later Wednesday saying the RCMP investigation does not affect the company as it operates today, noting that the RCMP confirmed the probe focuses solely on the company’s structure prior to its acquisition in May 2025. The company’s management said it could not comment further on the matter but said it is fully cooperating with authorities.
This article references reporting from:
