Bank of Montreal
What is a conservatory measure?
The Superintendent of Bankruptcy puts in place conservatory measures when a bankruptcy or insolvency estate needs protection. It might be in cases of Licensed Insolvency Trustee (LIT) malfeasance or if serious wrongdoing on the part of a LIT puts estate files at risk. Conservatory measures may also be put in place if a LIT becomes ill or dies without a valid succession agreement. Finally, conservatory measures may be put in place if a LIT, for whatever reason, has allowed the administration of his or her practice to become substandard.
In the matter of: Pfeiffer & Pfeiffer Inc.
Sydney H. Pfeiffer
Instructions For Conservatory Measures
(section 14.03 of the Bankruptcy and Insolvency Act)
Whereas the Bankruptcy and Insolvency Act provides the Superintendent with the general power to supervise the administration of all estates and matters to which the Act applies;
Whereas during the course of an investigation regarding the corporate trustee Pfeiffer & Pfeiffer Inc. and individual trustee Sydney H. Pfeiffer, the Deputy Superintendent (Programs, Standards and Regulatory Affairs), Alain Lafontaine, on July 5, 2002, with a view to protecting the estates, issued conservatory measures which notably enjoined financial institutions where, according to information given by the trustees, estate funds had been deposited to make no debit, payment or transfer on funds credited to the estates administered by the trustees unless they be co-signed by a representative of the Office of the Superintendent of Bankruptcy;
Whereas, in light of the seriousness of the irregularities identified, the Deputy Superintendent, Alain Lafontaine, on July 24, 2002, issued a second series of conservatory measures which enjoined the Official Receiver to take possession of the bankruptcy and proposal files administered by the trustees and to deliver them to Samson, Bélair, Deloitte & Touche Inc., guardian trustee, which has since been ensuring their administration;
Whereas since the issuance of these measures, the trustees Pfeiffer & Pfeiffer Inc. and Sydney H. Pfeiffer are no longer able to administer new estates or to conduct transactions in the estate bank accounts;
Whereas subsequent to the issuance of these measures, it was discovered that despite the conservatory measures put in place, the trustees are conducting banking transactions with bankruptcy estate moneys, through an account at the Bank of Montreal branch located at 630 René Lévesque Boulevard West, Montreal, Quebec;
Whereas the Superintendent of Bankruptcy may and must, for the protection of an estate, exercise the powers referred to in subsection 14.03(1) of the Act in the circumstances stipulated in subsection 14.03(2) of the Act;
Whereas the Superintendent of Bankruptcy has delegated to Sylvie Laperrière, Senior Analyst, Disciplinary Affairs, in accordance with subsection 14.01(2) of the Act, in certain situations mentioned in subsection 14.03(2), his powers as specified at subsection 14.03 (1) of the Act, copies of which delegation are attached along with copies of subsections 14.01(2) and 14.03(1) to (4) of the Act;
In accordance with paragraphs 14.03(1)a) and b) of the Bankruptcy and Insolvency Act;
I, Sylvie Laperrière, in my capacity as Senior Analyst, Disciplinary Affairs, give instruction to:
Bank of Montreal, branch located at 630 René Lévesque Boulevard West, Montreal, Province of Quebec:
- to consider, upon reception of the present instruction, Michel Pelland and/or Robert Malo and/or Denis Hamel and/or Jacques Pesant of Samson Bélair Deloitte Touche Inc. trustee, as agents of the Office of the Superintendent of Bankruptcy, to be the only authorized signatories for any and all operations on the funds credited to the estates of bankruptcies and proposals administered by Pfeiffer & Pfeiffer Inc. and Sydney H. Pfeiffer;
- to make no debit and/or payment and/or transfers on funds credited to the estates of bankruptcies and proposals administered by Pfeiffer & Pfeiffer Inc. and Sydney H. Pfeiffer, without having obtained the signature of Michel Pelland and/or Robert Malo and/or Denis Hamel and/or Jacques Pesant;
- not to pay, out of these accounts, bills of exchange, cheques, bank drafts or other such instruments that may have been issued before the reception of these instructions but which would be presented for payment after the receipt of these instructions, without these bills of exchange, cheques, bank drafts or other instruments being co-signed by Michel Pelland and/or Robert Malo and/or Denis Hamel and/or Jacques Pesant;
- to submit all statement of accounts, accepted cheques and/or other document and information having to do with the above mentioned estate accounts, to Michel Pelland and/or Robert Malo and/or Denis Hamel and/or Jacques Pesant;
- to provide, as soon as possible, the list of trust bank accounts of Pfeiffer & Pfeiffer Inc. and Sydney H. Pfeiffer to Michel Pelland and/or Robert Malo and/or Denis Hamel and/or Jacques Pesant.
These instructions take effect immediately and will stay in place until further notice or until a decision is rendered under section 14.01 of the Act;
In accordance with subsection 14.03(3) of the Act, these instructions bind their addressee, who must comply with them;
In accordance with subsection 14.03(4) of the Act, a person who complies with the present instructions is not liable for any act done by the person only to comply with them.
Signed, in the City of Sainte-Foy, Quebec, August 13th, 2002
Senior Analyst, Disciplinary Affairs
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