Henry Sztern and Henry Sztern & Associés Inc. — April 14, 2010

Professional Conduct Decision

What is a professional conduct decision?

An investigation into a Licensed Insolvency Trustees (LIT)'s professional conduct is initiated when there is information to suggest that the LIT has not properly performed the duties of a trustee or there has been improper administration of an estate or lack of compliance with the Bankruptcy and Insolvency Act (BIA).

In some cases, the findings are sufficiently serious to support a recommendation for sanctions against the LIT's licence (cancel or suspend a LIT's licence (subsection 13.2(5) of the BIA) or impose conditions or limitations (subsection 14.01(1) of the BIA)).

The professional conduct decision is deemed to be a decision of a federal board, commission or tribunal and may be judicially reviewed by the federal court.

OSB File No.: 03-02

Before Delegate André Deslongchamps

In the matter of:

Sylvie Laperriere (Senior analyst)

-and-

Henry Sztern

-and-

Henry Sztern & Associés Inc.

RE: Professional Conduct Proceedings pursuant to subsection 14.02(1) of the Bankruptcy and Insolvency Act on the conduct of Henry Sztern and Henry Sztern & Associés Inc.


Decision

  1. On , the undersigned, in his capacity as delegate of the Superintendent of Bankruptcy (Sec. 14.01(2) of the Bankruptcy and Insolvency Act, hereinafter the "BIA"), handed down a decision with respect to the thirty-five (35) allegations of offenses, purportedly committed by Henry Sztern and Henry Sztern & Associés Inc. (hereinafter "Sztern"), cancelled both the corporate licence of Henry Sztern & Associés Inc. and the individual licence issues to Henry Sztern, and reserved final decision with respect to the other sanctions requested.
  2. On [ sic] , Henry Sztern and Henry Sztern & Associés Inc. filed with the Federal Court (docket number: T-49-09) a request for judicial review of the decision rendered .
  3. Remaining in charge of the file, on , following proof and hearing, the undersigned rendered his decision on the other applications for reimbursement of the assets for the files affected by the decision in the following terms:

h) that the trustees Henry Sztern & Associes Inc. and Henry Sztern solidarily make restitution in the amount of $492,957.82 to the estate of Meco Limited unless the Quebec Superior Court, the Quebec Court of Appeal or the Supreme Court of Canada makes a final determination in regard to money of that estate claimed in Quebec Superior Court file #500 11 005714 973; if one of those courts makes a final determination in regard to the plaintiffs claim for repayment to the Meco Limited estate, the trustee will not be required to make any restitution to this estate pursuant to my order as Delegate of the Superintendent of Bankruptcy;

i) that the trustees Henry Sztern & Associes Inc. and Henry Sztern solidarily make restitutions in the amount of  $18,133.73 to the estate of Eric Lacroix unless the Quebec Superior Court, the Quebec Court of Appeal or the Supreme Court of Canada makes a final determination in regard to money of that estate claimed in Quebec Superior Court file #500-11-005714-973; if one of those courts makes a final determination in regard to the plaintiffs claim for repayment to the Eric Lacroix estate, the trustees will not be required to make any restitution to this estate pursuant to my order as Delegate of the Superintendent of Bankruptcy;

j) that the trustees Henry Sztern & Associes Inc. and Henry Sztern solidarily make restitution in the amount of $20,000.00 to the estate of 9084-8144 Quebec Inc unless the Quebec Superior Court, the Quebec Court of Appeal or the Supreme Court of Canada makes a final determination in regard to money of that estate claimed in Quebec Superior Court file #500-11-005714-973; if one of those courts makes a final determination in regard to the plaintiffs claim for repayment to the 9084-8144 Quebec Inc estate, the trustees will not be required to make any restitution to this estate pursuant to my order as Delegate of the Superintendent of Bankruptcy;

k) that the trustees Henry Sztern & Associes Inc. and Henry Sztern solidarily make restitution in the amount of $46,107.40 to the estate of Service de Mini-Remorque HCH Inc. unless the Quebec Superior Court, the Quebec Court of Appeal or the Supreme Court of Canada makes a final determination in regard to money of that estate claimed in Quebec Superior Court file #500-11-005714-973; if one of those courts makes a final determination in regard to the plaintiffs claim for repayment to the Service de Mini-Remorque HCH Inc. estate, the trustees will not be required to make any restitution to this estate pursuant to my order as Delegate of the Superintendent of Bankruptcy;

l) that the trustees Henry Sztern & Associes Inc. and Henry Sztern solidarily make restitution in the amount of $77,423.67 to the estate of Kenneth Roy Sinclair unless the Qubec Superior Court, the Quebec Court of Appeal or the Supreme Court file makes a final determination in regard to money of that estate claimed in Quebec Superior Court file #500-11-005714-973; if one of those courts makes a final determination in regard to the plaintiffs claim for repayment to the Kenneth Roy Sinclair estate, the trustee will not be required to make any restitution to this estate pursuant to my order as Delegate of the Superintendent of Bankruptcy.

[32] I will remain seized of this matter (possible restitution to the estates of Meco Limited, Eric Lacroix, 9184-8044 Quebec Inc, Service de Mini Remorque HCH Inc., Kenneth Roy Sinclair and Linh Kanh Nguyen) until a final court determination has been made in regard to the claims made, on behalf of these estates, by the Court of Appeal or the Supreme Court of Canada, pursuant to any subsequent appeal of the judgement rendered on by the Honourable Robert Mongeon, J.C.S, in the file # 500-11-005714-973, and the judgement rendered on by the Honorable Wilbrod Décarie in the file #505-11-001995-971.

[33] If, by , a final court determination has not been made in Quebec Court of Appeal or in the Supreme Court of Canada in regard to any of the estates identified in the preceding clauses, the parties are requested to file further submissions to this proceeding with respect to the order that I should make.

  1. On , the undersigned communicated with the parties and / or their counsel, outlining that:

As per the decision rendered on , in the above-mentioned matter, would you please advise the undersigned if a final court determination has been made in Quebec Court of Appeal or in the Supreme Court of Canada in regard to any of the estates identified in paragraph 32 of the said decision.

  1. On , the Honourable Justice Richard Boivin of the Federal Court rejected, with costs, the request for judicial review submitted by Henry Sztern et Henry Sztern & Associés Inc.
  2. As it appears in the Superior Court's records (Nos.500-11-005714-973 and 505-11-001995-971) no appeals of the decisions rendered by the Honourable Justices Robert Mongeon and Claude Décarie have been filed; these two decisions are thus final.
  3. For these reasons, the undersigned orders and declares that:
  4. The is final.
  5. The decision is final, with the exception of paragraphs h), i), j), k) and l) of the conclusion.

Rendered in Montreal, pursuant to section 14.01(2) of the BIA.

Original signed by


space to insert signature

André Deslongchamps,
Delegate of the Superintendent of Bankruptcy


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

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