The promises of Élan Future and its leader in the sights of the Financial Markets Authority

2024-02-21 12:16:05

Investors have injected more than $8.9 million into Élan Future, a Granby company that says it has technology that should “put an end to the energy crisis.” However, almost all of the sums received through contracts linked to its cryptocurrency would not have been used for the activities of the young company, which is today in the sights of the Financial Markets Authority (AMF). A part of this money would have rather been used to purchase buildings, two Teslas, a yacht and a Ducati motorcycle.

On its website, Élan Future promises to change the world. The company founded and managed by Jérôme-Olivier Malo claims to have developed a “sophisticated energy amplifier” which, by relying on “parametric resonance”, could “put an end to the energy crisis”.

The device, it is written, would multiply “the range of your electric vehicle by 10”. It would thus be possible to recharge an automobile “ [qu’]once every two months. This technology, which can be installed in “30 minutes”, could also significantly reduce the energy consumption of buildings.

The duty consulted the white paper that Élan Future representatives presented to potential investors in recent years. No technical information details the process. It states that it has built a prototype and guarantees that the technology will be ready by 2025. “We followed a rigorous verification and prototype validation process with two different universities,” it states, without however naming the establishments in question.

Jérôme-Olivier Malo refused the interview request from Duty,but agreed to provide comments by email. “To date, two patent applications have been published concerning general aspects of the use of the parametric resonance principle,” he writes, adding that Élan Future’s research program “focuses primarily on the development of electric generators without a magnet.

“The latest device prototypes developed by Élan are the subject of a patent application that has not yet been published. This unpublished patent application is one of Élan’s trade secrets,” he asserts.

The AMF gets involved

Élan Future and its founder are now in the sights of the Financial Markets Authority. The AMF accuses them of having made investments through contracts linked to the company’s cryptocurrency — Elan Coin — without having the necessary authorizations.

At the request of the AMF, which is currently continuing its investigation, a judge of the Administrative Financial Markets Tribunal ordered the blocking of Élan Future’s accounts, but also those of Mr. Malo and several business partners.

The Quebec financial markets regulatory body says it fears that the sums collected will be “squandered”. Of the $8.9 million received from confirmed or potential investors, according to estimates from the AMF investigation, only $622,000 of the cash outflows “could perhaps be linked to business expenses” . Jérôme-Olivier Malo and his companies “may have implemented a scheme according to which a significant part of the funds collected from investors would be used to pay personal expenses”.

According to current evidence from the AMF, the sums injected by investors would have been used to purchase a yacht, three cars (including two Teslas), a Ducati motorcycle and two buildings. According to documents obtained by The dutya numbered company belonging to Mr. Malo purchased for $1.25 million the Bromont building where the Boréalis spa was located a few years ago.

The respondents contest the court’s decision.

By email, Mr. Malo recalled that the orders were issued a few days before Christmas, “without [qu’il] is present and without [qu’il] was able to assert [sa] position and provide the necessary clarifications and explanations. “At this stage, I want to let the investigation by the Financial Markets Authority take its course while showing collaboration to get to the bottom of things. »

In addition to Élan Future and Jérôme-Olivier Malo, the court order also targets business partners of the Granby entrepreneur: Martin Isabelle, Nicolas Maltais, Dominik Bilodeau, Alexandre Cossette and Marie-Soleil Baril.

Eternal Global and Elan Coin

The accounts of the company Eternelle Global, also owned by Jérôme-Olivier Malo, were also blocked. The latter offers genetic test analysis services. The company’s email is no longer accessible, and calls to its telephone number go to a generic voicemail box where you cannot leave a message. Jérôme-Olivier Malo explains that Éterelle Global has no longer been active since the pandemic, but that it still ensures communications with its existing clients.

The value of the Elan Coin cryptocurrency has also fallen by more than 70% since the order obtained by the AMF, according to the Coinbase site, which tracks the evolution of many cryptoassets. After being around $10 in December 2022, the value of Elan Coin today is less than $0.50.

Martin Lalonde, president of Rivemont, a manager which offers an investment fund linked to cryptocurrency, however wants to put into perspective the role played by cryptocurrencies in this type of issue. “Since it’s new, since it’s special, since the returns have been so good for holders of cryptocurrencies in the past, that means that there are several people who want to participate without necessarily doing all the necessary homework, without making sure they understand what they are investing in. »

“The danger is not the cryptocurrency as such, but rather that the person raising the funds is not registered – therefore supervised – by the Financial Markets Authority or by another regulatory body,” he says. to remind.