Investors getting cash back in Norbourg bankruptcy

Investors hit hard by the financial scandal at Norbourg Group of Companies are finally getting some of their money back.

Ernst & Young, the government-appointed liquidator, said Wednesday it will distribute roughly $31.2 million to about 5,600 investors.

The rest of the more than $80 million that disappeared is still being held until a judge decides how it will be distributed.

Norbourg's problems came to light last summer when Quebec's financial regulator discovered a $130-million discrepancy between the company's financial results and its assets under management.

Norbourg's assets were frozen in August. It's alleged more than 9,000 investors, mostly from Quebec, were defrauded.

The money management company filed for bankruptcy in October 2005.

In March of this year, l'Autorité des marchés financiers, Quebec's top financial regulator, laid 51 securities charges against Vincent Lacroix, the founder of Norbourg. The regulator said 24 of the charges relate to false or misleading information and 27 relate to manipulating mutual fund values.

A Quebec judge declared Lacroix bankrupt in May.