Micheline Charest

The success of Charest, Weinberg, and CINAR ended in March 2000, when an internal audit revealed that about $122 million (US) was invested into Bahamian bank accounts without the boardmembers' approval. CINAR had also paid American screenwriters for work while continuing to accept Government of Canada grants for content. The names of Canadians, most notably, Charest's sister, Helene via the alias Eric Alexandre, were credited for the work, allowing CINAR to benefit from Canadian tax credits. While the province of Quebec did not file criminal charges, CINAR denied any wrongdoing, choosing instead to pay a settlement to Canadian and Quebec tax authorities of $17.8 million (CAD) and another $2.6 million (CAD) to Telefilm Canada, a Canadian federal funding agency. The value of CINAR stock plummeted, and the company was soon delisted.

In 2001, as part of a settlement agreement with the Commission des Valeurs Mobilières du Québec (Quebec Securities Commission) Charest and Weinberg agreed to pay $1 million each and were banned from serving in the capacity of directors or officers at any publicly traded Canadian company for five years. There was no admission of guilt and none of the allegations have been proven in court. In March 2004, CINAR was purchased for more than $140 million (US) by a group led by Nelvana co-founder, Michael Hirsh. Charest and Weinberg reportedly received $18 million (US) for their company shares.

In August 2009, Claude Robinson, a graphic artist and writer, won a copyright case against CINAR, Weinberg, Charest and Co. in relation to his work, Robinson Curiosité, which was plagiarized for the internationally successful animated series Robinson Sucroe.