Directions for Conservatory Measures to Mr. Duncan Monkhouse—February 27, 2009

Conservatory Measures

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: Melvin Charles Zwaig and Zwaig Associates Inc.

Direction for Conservatory Measures
(Section 14.03 of the Bankruptcy and Insolvency Act)

Whereas the Bankruptcy and Insolvency Act (the Act) provides the Superintendent of Bankruptcy (the Superintendent) with the general power to supervise the administration of all estates and matters to which the Act applies;

Whereas Melvin Charles Zwaig (the trustee) is the holder of an individual license as trustee in bankruptcy;

Whereas Zwaig Associates Inc. is the holder of a corporate licence as trustee in bankruptcy;

Whereas the trustee is the sole practitioner of Zwaig Associates Inc.;

Whereas Mr. Brian Haley from the Office of the Superintendent of Bankruptcy was informed by Ms. Elizabeth Rawson that the trustee was hospitalized since the weekend of January 31/February 1, 2009 and that to this date, he had not returned to his office;

Whereas Mr. Avi Koren from the Office of the Superintendent of Bankruptcy went to St. Michael's Hospital and that he was told that Mr. Zwaig is in the Palliative Care unit and that Mr. Koren was also informed by Mr. Bill Wade, Director of the Palliative Care Unit, that the trustee was not allowed visitors other than family members due to his health condition;

Whereas on February 26, 2009 Ms. Dana Jurksaitis from the trustee's office informed Mr. Brian Haley from the Office of the Superintendent of Bankruptcy that Mr. Melvin Charles Zwaig had passed away that day;

Whereas a notice corroborating the death of Mr. Zwaig was published by the funeral director, Paperman and Sons Inc.;

Whereas the trustee's file inventory totals 130 estates with an aggregate amount of approximately $730,000 in the trust bank accounts;

Whereas the Office of the Superintendent of Bankruptcy has been unable to identify any succession arrangement for the continued administration of the estates;

Whereas I believe on reasonable grounds that the estates require protection;

Whereas the Superintendent may, for the protection of an estate, exercise the powers set out in subsection 14.03(1) of the Act, in the circumstances referred to in section 14.03(2) of the Act;

Whereas the Superintendent has delegated to me, in accordance with section 14.01(2) of the Act, the powers of the Superintendent as specified in section 14.03(1) of the Act, in the circumstance referred to in section 14.03(2), a copy of which delegation is attached, along with copies of sections 14.01, 14.02 and 14.03 of the Act;

Whereas subsections 14.03(1)(b) and (c) and 2(a) of the Act apply;

I, Ann Speers, Assistant Superintendent, Trustee Compliance, in my capacity as delegate for the Superintendent, direct:

Mr. Duncan Monkhouse, who may enlist the help of any other individual(s) required to fully comply with these directions, to copy all accounting data and all documents contained in any computer or data storage device, relating to the assets and files of the estates listed in Appendix A, or as identified as requiring administration, wherever they may be located, particularly at the place of business of the abovementioned trustee at:

20 Adelaide Street East, Suite 800,
Toronto, Ontario.

and to remit them to Mr. Brian Haley, Official Receiver, of the Office of the Superintendent of Bankruptcy,
600–25 St. Clair Avenue East,
Toronto, Ontario,
M4T 1M2.

These directions take effect immediately and will stay in place until the undersigned is satisfied that they are no longer required.

In accordance with subsection 14.03(3) of the Act, these directions bind their addressees, who must comply with them.

In accordance with subsection 14.03(4) of the Act, a person who complies with these directions is not liable for any act done by the person only to comply with them.

Signed at the City of Toronto Ontario this 27th day of February, 2009.

Ann Speers
Assistant Superintendent, Trustee Compliance

This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.
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