Directions for Conservatory Measures to Co-Signatories—September 6, 2012

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:
Thomas J. Carleton and
T. Carleton & Co. 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 Thomas J. Carleton (the "Trustee") is the holder of an individual licence as trustee in bankruptcy;

Whereas T. Carleton & Co. Inc. is the holder of a corporate licence as trustee in bankruptcy;

Whereas the Trustee is the sole practitioner of T. Carleton & Co. Inc.;

Whereas Mr. Michele (Mike) Cacciavillani, Senior Bankruptcy Analyst (“SBA”) of the Office of the Superintendent of Bankruptcy (“OSB”), was informed by Mr. Carl Rumanek that the trustee was hospitalized on ;

Whereas the trustee remains in hospital as at the date of this direction for conservatory measures;

Whereas the trustee, in the present circumstances, is unable to administer estates under the administration of Thomas J. Carleton and T. Carleton & Co. Inc.;

Whereas the Trustee’s current file inventory totals 245 estates;

Whereas according to the 2012 Annual Banking Report, the current estate inventory is comprised of an aggregate amount of approximately $1,160,000 in the trust bank accounts;

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 subsection 14.03(2) of the Act;

Whereas the Superintendent has delegated to me, in accordance with subsection 14.01(2) of the Act, the powers of the Superintendent as specified at subsection 14.03(1) of the Act, in the circumstance referred to in subsection 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 paragraph 14.03(2)(a) of the Act applies;

I, Diane Valic, in my capacity as delegate for the Superintendent:

Direct Ms. Joy Shortt or Mr. Michele (Mike) Cacciavillani, pursuant to paragraphs 14.03(1)(a) and (b) of the Act, to ensure the validity and justification of all payments for expenses, fees, remuneration, etc. from the estate accounts administered by Thomas J. Carleton and T. Carleton & Co. Inc. that are presented for payment subsequent to the issuance of this direction, and if said payments are justified, to co-sign all cheques, bills of exchange, bank drafts, certificates of deposit and fund transfers payable out of the estate trust bank accounts administered by Thomas J. Carleton and T. Carleton & Co. Inc.;

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 subsection 14.03(3) of the Act, these directions bind Ms. Joy Shortt and Mr. Michele (Mike) Cacciavillani, who must comply with them;

That, pursuant to subsection 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 Toronto, Ontario, this .

space to insert signature
Diane Valic
Assistant Superintendent of Bankruptcy

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

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