Christopher Joe Crupi; Christopher Crupi & Associates Inc.
Directions for Conservatory Measures to BDO Canada Limited—
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:
Christopher Joe Crupi and
Christopher Crupi & Associates Inc.
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 Christopher Joe Crupi (the trustee) was the holder of an individual license as trustee in bankruptcy;
Whereas Christopher Crupi & Associates Inc. was the holder of a corporate licence as trustee in bankruptcy;
Whereas the trustee is the sole practitioner of Christopher Crupi & Associates Inc.;
Whereas the trustee's file inventory totals 14 estates (the Crupi estates);
Whereas the trustee failed to submit to the Office of the Superintendent of Bankruptcy (OSB) the 2010 Annual Banking Reports as required by paragraph 10 of Directive 5R4;
Whereas a review of the Trustee's closed estates, based on 2009 Annual Banking Report (ABR), identifies that seven closed estates have balances, thereby failing to comply with Directive 8, Unclaimed Dividends and Undistributed Funds, which sets out guidelines for the distribution of undistributed funds;
Whereas Ms. Tammy Turner, Senior Bankruptcy Analyst (SBA), and Ms. Aleksandra Jankovic, SBA, conducted a Practice Review of the trustee's practice on February 16-19, 2010, and March 3, 2010;
Whereas a Practice Review Report dated October 25, 2010 was sent to the trustee wherein several deficiencies in the administration of various estates were identified;
Whereas the trustee failed to address the deficiencies identified in the Practice Review Report by failing to provide satisfactory responses, or any response, to said Report;
Whereas the trustee failed to produce an Improvement Plan detailing specific measures to correct deficiencies identified in individual estates as requested by the SBA;
Whereas the interests of stakeholders are at risk due to serious and repetitive administrative deficiencies;
Whereas the Trustee has been generally uncooperative and uncommunicative with the OSB representatives despite several requests being made by letter, email and telephone, more specifically on March 29, April 15, May 6, May 10, June 3, June 7, June 9, June 14, October 25, November 30, December 22, 2010. The trustee responded on January 6, 2011 wherein he undertook to provide the 2010 ABR (due May 31, 2010) by January 10, 2011, and a response to the Practice Review Report by January 11, 2011. To date, neither document have been received by the OSB;
Whereas the Superintendent initially appointed Tammy Turner, and subsequently appointed Avi Koren and Abubakar Khan, all employees of the Superintendent, as Guardian Trustee;
Whereas the Superintendent has deemed it advisable to transfer the estate files in question to a private-sector Trustee;
Whereas BDO Canada Limited has consented to administer the Crupi estates pursuant to this direction issued under paragraph 14.03(1)(a);
Whereas BDO Canada Limited shall, until discharged or another trustee is appointed in BDO Canada Limited's stead, perform the duties required of a trustee under this Act, but notwithstanding its discharge, BDO Canada Limited remains responsible for the performance of such duties as may be incidental to the full 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 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 sections 14.01, 14.02 and 14.03 of the Act;
Whereas paragraphs 14.03(1)(b) and (c) and 14.03(2)(b) of the Act apply;
I, Kirti Gauthier, in my capacity as delegate for the Superintendent, direct BDO Canada Limited, Guardian Trustee:
- To take the necessary steps to administer all estates and estate files previously administered by either Christopher Joe Crupi or Christopher Crupi & Associates Inc., as well as any closed estates that may require further administration and any other of the trustee's files identified by the Official Receiver as requiring further administration;
- To keep the said property and records, deeds, books, documents, computerized data, and bank accounts related to such files, to make an inventory of them, to preserve them and administer them in accordance with the sections of the Act;
- To continue the administration of these files in accordance with the duties and responsibilities incumbent on trustees in bankruptcy according to the Act.
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 BDO Canada Limited, 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 Ottawa, Ontario, this 2nd day of May, 2012.
National Manager, Trustee Detection and Compliance
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.
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