Income trusts scandal: senior federal official charged

NEWS RELEASE

ROYAL CANADIAN MOUNTED POLICE

************************* RCMP concludes income trusts investigation

Ottawa, February 15, 2007 – RCMP "A" Division Ottawa Commercial Crime, assisted by the Integrated Market Enforcement Teams, laid a charge against Serge Nadeau earlier today in connection with the income trusts investigation.

The investigation was initiated in December 2005 when the RCMP received allegations regarding a possible breach of security and illegal transfer of information in advance of the Government of Canada’s Nov. 23, 2005, announcement of changes to the taxation of Canadian corporate dividends and income trusts.

Serge Nadeau, age 50 of Ottawa, general director, analysis, tax policy branch, Department of Finance Canada, is charged with criminal breach of trust in connection with the duties of his office.

It is alleged that he used confidential Government of Canada information for the purchase of securities which gave him a personal benefit.

Breach of trust, under Section 122 of the Criminal Code of Canada, is an indictable offence with a maximum penalty of imprisonment for up to five years.

The RCMP works to maintain confidence in Canadian markets by preventing, detecting and deterring crimes that affect the Canadian economy.

The RCMP has conducted an exhaustive investigation.

The investigation into the income trusts matter is now concluded.

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