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.
Canada
In the matter of: Jean-Guy St-Georges
Directions 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 Jean-Guy St-Georges (the trustee) is the holder of an individual license as trustee in bankruptcy;
Whereas Jean-Guy St-Georges was employed as a trustee with the firm Ginsberg Gingras & Associates Inc. (Ginsberg Gingras) during the period September 2007 to August 26th, 2009;
Whereas Mr. Richard Cadieux, trustee, vice-president and associate with the trustee firm Ginsberg Gingras filed a written complaint dated January 8th, 2010 with the Montreal Division Office of the Superintendent of Bankruptcy regarding the professional conduct of Jean-Guy St-Georges;
Whereas this letter, together with documentation provided by Mr. Cadieux and with verbal confirmation of certain events as recounted by Mr. André Thibault, also a trustee employed with Ginsberg Gingras, gave evidence as to a serious breach of a trustees duties, namely the failure to remit funds he received in at least two estates for deposit in the Ginsberg Gingras trust account for the benefit of these estates;
Whereas during a recent meeting between Mr. Thibault and Mr. St-Georges, Mr. Thibault questioned Mr. St-Georges as to the disposition of the funds in the amount of $1,500 received in the estate of Etienne Rousse. Mr. St-Georges admitted he received these funds in May 2009 and he thereupon remitted a cheque dated January 8th, 2010 to Mr. Thibault in the amount of $1,500.
Whereas Jean-Guy St-Georges was previously sanctioned with a suspension of his trustee licence for a period of 21 months by a decision rendered by the Honorable Perry Meyer on November 24th, 2004, which decision refers to infractions regarding the administration of estate funds;
Whereas I believe on reasonable grounds that any estate administered by Mr. St-Georges requires 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 at 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 subsection 14.01(2) and section 14.03 of the Act;
Whereas paragraphs 14.03(1)(b) and (c) and 14.03(2)(b) of the Act apply;
I, Robert Massé, Assistant Superintendent, acting in my capacity as delegate for the Superintendent, direct:
That, pursuant to sections 14.03(1)(d) of the Act, the Official Receiver not appoint Jean-Guy St-Georges in respect of any new estates until a decision is made under subsection 13.2(5) or 14.01(1), or until such time as I am satisfied that the estates no longer require protection;
That these directions take effect immediately and will remain in effect until such time as the undersigned is satisfied that they are no longer required;
That in accordance with section 14.03(3) of the Act, these directions bind the Official Receiver, who must comply with them;
That, pursuant to section 14.03(4) of the Act, a person who complies with this direction is not liable for any act done by that person only to comply with this direction.
Signed at the City of Montreal, Quebec, this 21st day of January, 2010
Robert Massé
Assistant Superintendent
Office of the Superintendent of Bankruptcy