Directions for Conservatory Measures to TD Canada Trust, 901 2nd Avenue East, Owen Sound, Ontario, N4K 5P5—
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:
Sidney Charles Schiff
Schiff & 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 Sidney Charles Schiff (the trustee) is the holder of an individual license as trustee in bankruptcy;
Whereas Schiff & Associates Inc. (the trustee) is the holder of a corporate trustee license;
Whereas the investigations made by the Superintendent pursuant to paragraph 5(3)(e) of the Act revealed that the administration of all the open estates filed under the trustee's licence had been ongoing for a period exceeding three years;
Whereas the investigations made by the Superintendent pursuant to paragraph 5(3)(e) of the Act revealed a number of contraventions in the trust fund banking and general administration aspects of the trustee's administration of his estates;
Whereas the trustee failed to adhere to terms of the trustee's Closing Plan submitted on September 5, 2003, pursuant to the requirements set out in the Superintendent's Initiative for the Orderly and Timely Administration of Estates (IOTA);
Whereas the trustee failed to submit the monthly progress reports on the Closing Plan submitted on September 5, 2003, as per the requirements set out by the Acting Associate Division Assistant Superintendent in his letter of September 15, 2003;
Whereas the trustee failed to submit, after being unable to perform on the Closing Plan filed on September 5, 2003, another Closing Plan, as required by the Acting Senior Division Assistant Superintendent in her letter of June 13, 2005;
Whereas the trustee failed to ensure that adequate human resources are available to satisfactorily conduct and conclude the administration of estates under the trustee's supervision;
Whereas the trustee failed to maintain and produce for the Superintendent's inspection, proper books and records of the administration of estates to which the trustee is appointed;
Whereas the trustee failed to obtain and maintain on record, the inspector's authorization with respect to the disposition of estate assets and approval of the trustee's fee draws;
Whereas the trustee failed to properly reconcile the consolidated and individual trust accounts pertaining to the estates under the trustee's administration;
Whereas the trustee failed to obtain a competitive interest rate for the estate trust funds pertaining to estates under the trustee's administration;
Whereas the trustee failed to ensure that the estate trust funds pertaining to estates under the trustee's administration are not commingled with non-trust monies;
Whereas the trustee failed to obtain and post the estate bond in the matter of the Ling Jun Huan estate;
Whereas the trustee failed to administer the Vince Nino Delvecchio, Donald Robert George Wilson, and Jeanette Lesley Wilson proposals in accordance with the provisions governing the proposals filed under Part III of the Act;
Whereas it has become necessary to substitute another Guardian Trustee in the place of the current Guardian Trustee, Tammy Turner;
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(2)(a) and (b) of the Act apply;
I, Rebekah Johnston, in my capacity as delegate for the Superintendent, direct TD Canada Trust, 901 2nd Avenue East, Owen Sound, Ontario, N4K 5P5, that, pursuant to sections 14.03(1)(b) and (c) of the Act:
- it consider upon receipt of the present directions, Abubakar Khan, Guardian Trustee, as the only authorized signatory as relates to any operations on the funds credited to the estates of bankruptcies and proposals administered by Sidney Charles Schiff or Schiff & Associates Inc.;
- it make no debit, payment or transfer of funds credited to, or which ought to have been credited to, the estates of bankruptcies and proposals administered by Sidney Charles Schiff or Schiff & Associates Inc. without the signature of Abubakar Khan, Guardian Trustee;
- it not pay out of these accounts: cheques, bills of exchange, bank drafts or other instruments, issued before the receipt of these directions that are presented for payment after the receipt of these directions, without these cheques, bills of exchange, bank drafts or other instruments being signed by Abubakar Khan, Guardian Trustee;
- it submit all statement of accounts, accepted cheques and other documents or information having to do with the above-mentioned estate trust bank accounts to Abubakar Khan, Guardian Trustee, Office of the Superintendent of Bankruptcy, 25 St. Clair Avenue East, Suite 600, Toronto, Ontario, M4T 1M2;
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 TD Canada Trust, 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 8th day of March 2012.
Assistant Superintendent of Bankruptcy
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.
- Date modified: