John Lukca; J. Lukca & Associés Inc. — September 26, 2016

Professional Conduct Decision

Corrected Decision

September 28, 2016: Corrections were made to the spelling of John Lukca at paragraphs [4]1 and [4]2 of the Reasons for Decision and Order issued on September 26, 2016.

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.: 643561

Before William R. James, Superintendent of Bankruptcy

In the matter of conduct pursuant to section 14.01, and the suspension or cancellation of a licence pursuant to subsection 13.2(5) of the Bankruptcy and Insolvency Act concerning:

Office of the Superintendent of Bankruptcy Canada

- and -

John Lukca, individual trustee licence number 1804

- and -

John Lukca & Associés Inc., corporate trustee licence number 2337


Reasons for Decision and Order

[1]   This decision is taken based on the consideration of the documentation transmitted to the Superintendent of Bankruptcy on August 15, 2016, by Roula Eatrides, Deputy Superintendent, Operations and Corporate Services, which included a description of the following facts and events:

  1. In March 2006, the Office of the Superintendent of Bankruptcy (OSB) conducted a Practice Review pertaining to the administration of estates under the individual (number 1804) and corporate (number 2337) licences. On April 5, 2006, the trustee was notified of observations and recommendations relating to deficiencies;
  2. Due to irregularities in the administration of trust accounts and several aspects pertaining to the administration of insolvency estates, Directions for Conservatory Measures were issued by the Office of the Superintendent of Bankruptcy on July 4, 2006, modified on May 17, 2007 and April 16, 2008;
  3. Between 2006 and 2016, a professional conduct investigation was completed, and discussions occurred between the trustee and the OSB;
  4. As a result of compliance concerns having been rectified, the Conservatory Measures applying to the individual (number 1804) and corporate (number 2337) licences were lifted by the OSB on July 18, 2016; and
  5. The trustee and OSB have identified licence measures which would bring the professional conduct matter to a mutually acceptable conclusion.

[2]   The trustee has been provided notice pursuant to subsections 14.02(1) and 13.2(6) of the Bankruptcy and Insolvency Act (BIA).

[3]   Both parties have been provided the opportunity to make representations on any outstanding matters.

[4]   After consideration of the matter, including the above-mentioned events, it appears that the requirements of subsection 14.01(1) are satisfied. Therefore, in my capacity as Superintendent of Bankruptcy, pursuant to paragraphs 14.01(1)(d) and (e) of the BIA, I hereby order:

  1. John Lukca’s individual licence (number 1804) be suspended between:
    1. December 15, 2016 to January 13, 2017; and
    2. July 15, 2017 to August 13, 2017.
  2. John Lukca’s individual licence (number 1804) be subject to the following conditions:
    1. all statements of receipts and disbursements are to be co-signed by another licensed insolvency trustee in good standing, for a period of one (1) year; and
    2. all cheques and monthly bank reconciliation of trust accounts to be co-signed by another licensed insolvency trustee in good standing, for a period of two (2) years.

[5]   Pursuant to paragraph 13.2(5)(d) of the BIA, I hereby order:

  1. The cancellation of John Lukca & Associés Inc., corporate licence number 2337.

Given in Ottawa, Ontario, September 26, 2016 pursuant to subsection 14.01(2) and paragraph 13.2(5)(d) of the BIA.

William R. James
Superintendent of Bankruptcy


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

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