Samson Bélair/Deloitte & Touche Inc. —
Professional Conduct Decision
What is a professional conduct decision?
An investigation into a Licensed Insolvency Trustees (LIT)'s professional conduct is initiated when there is information to suggest that the LIT has not properly performed the duties of a trustee or there has been improper administration of an estate or lack of compliance with the Bankruptcy and Insolvency Act (BIA).
In some cases, the findings are sufficiently serious to support a recommendation for sanctions against the LIT's licence (cancel or suspend a LIT's licence (subsection 13.2(5) of the BIA) or impose conditions or limitations (subsection 14.01(1) of the BIA)).
The professional conduct decision is deemed to be a decision of a federal board, commission or tribunal and may be judicially reviewed by the federal court.
In the matter of
Samson Bélair/Deloitte & Touche inc.
holder of a corporate trustee licence
for the province of Quebec
the Bankruptcy and Insolvency Act
Whereas an official receiver conducted a visit of the trustee's offices from , as well as follow-up visits in September and October 1998, as part of the detection program;
Whereas the report of the official receiver noted that the above-referenced licensed trustee failed in various respects to properly fulfil its statutory duties in the administration of its consolidated bankruptcy account for summary administrations, as well as its obligations to control and supervise consolidated bankruptcy accounts for summary administrations by trustees who were members and/or employees of its firm;
Whereas this detection report resulted in the appointment, on , of a Senior Analyst, Disciplinary Affairs, to conduct a disciplinary investigation;
Whereas the Senior Analyst, Disciplinary Affairs issued a report on , and the report was amended on ;
Whereas the representatives of Samson Bélair/Deloitte & Touche Inc. cooperated fully with the Senior Analyst, Disciplinary Affairs during his investigation, and submitted to the Office of the Superintendent of Bankruptcies, as undistributed funds, the sum of $64,71.63 representing accumulated undistributed interest in its consolidated summary administration bankruptcy account, banking fees improperly supported by consolidated bankruptcy accounts and-amounts improperly withdrawn from its consolidated summary administration bankruptcy account;
Whereas, subsequent to the issuance of the disciplinary report, the firm of Samson Bélair/Deloitte & Touche Inc., consisting of a new team of trustees and insolvency practitioners, provided a voluntary disclosure, through its counsel, of certain facts concerning eight (8) other bank accounts;
Whereas the firm of Samson Bélair/Deloitte & Touche Inc. agreed, from the initial meetings onward, to reimburse all monies that had not been handled in accordance with the established standards;
Whereas the Senior Analyst, Disciplinary Affairs issued an addendum on November 7, 2001 to reflect new facts, in particular the voluntary disclosure and the remittance of amounts totalling $41,373.37 to a depositor, creditors and the Office of the Superintendent of Bankruptcies;
Whereas none of the trustees involved in the improper and non-conforming management of consolidated bankruptcy accounts are partners and/or employees of Samson Bélair/Deloitte & Touche Inc. any longer, and the trustees and insolvency practitioners currently with the said firm were not in any way involved in the improprieties noted;
Whereas the firm of Samson Bélair/Deloitte & Touche Inc. has cooperated fully with Office of the Superintendent of Bankruptcy representatives since 1998;
Whereas the above facts mentioned do not have the effect of lessening the disciplinary responsibility of the corporate trustee, but are mitigating circumstances in terms of the sanction to be imposed;
Whereas corporate trustee Samson Bélair/Deloitte & Touche inc. suggested that, in addition to the reimbursement of the costs of this matter, the sanction consist of a donation to the Association coopérative d'économie familiale;
Whereas the parties have submitted to me this draft decision, which in my opinion is fair and reasonable in the specific circumstances of this case, and there is no reason to derogate from it;
By These Reasons:
I, the undersigned, Lawrence A. Poitras, Delegate of the Superintendent of Bankruptcies by virtue of the powers delegated to me under section 14.01 of the Bankruptcy and Insolvency Act,
Order Samson Bélair/Deloitte & Touche Inc., corporate trustee, to pay to the Office of the superintendent of Bankruptcies the sum of $20,000.00 as reimbursement of the costs of the investigation into the professional conduct of the said trustee;
Give effect to the agreement by Samson Bélair/Deloitte & Touche Inc. to make a donation to the Association cooperative d'économie familiale in the amount of $25,000.00;
The payments referred to above shall be made within fifteen (15) days of the signing of this decision, failing which the parties shall be called before the undersigned for a hearing.
Signed in Montreal, this .
The Honorable Lawrence A. Poitras, Q.C.
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.
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