Lion Electric headquarters raided by RCMP in investment fraud probe

The Royal Canadian Mounted Police (RCMP) conducted a raid on the headquarters and facilities of electric bus manufacturer Lion Electric in Saint-Jérôme, Quebec. Approximately 75 officers participated in the search, which involves seizing evidence including servers. The operation is part of an investigation by the RCMP's Integrated Market Enforcement Team into alleged investment fraud.

The investigation was launched in February 2025 following more than 100 complaints from investors. RCMP spokesperson Sergeant Erique Gasse stated that the operation concerns the company’s past activities prior to its acquisition in May 2025 by a group of Quebec-based investors. No arrests or charges have been made at this stage.

Lion Electric, once a prominent symbol of Quebec’s electrification strategy, filed for creditor protection in December 2024 with debts estimated between $400 million and $500 million USD. The company’s previous management faces allegations in a class-action lawsuit of misleading investors by inflating order books and misrepresenting financial health. Additionally, Quebec’s financial regulator recently imposed a $1.1-million penalty on investor Claude Roy for selling shares shortly before the company entered bankruptcy protection.