Directions to UBERbase and Chris Panagapko
—December 20, 2017
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.
Directions to UBERbase and Chris Panagapko
(December 20, 2017)
In the matter of:
Michael Carson, Shannon Desaulniers and
Surgeson Carson 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 Michael Carson (“Carson”) is the holder of an individual licence as a licensed insolvency trustee;
Whereas Surgeson Carson Associates Inc. (“SCAI”) is the holder of a corporate licence as a licensed insolvency trustee;
Whereas Carson is an owner of SCAI and a licensed insolvency trustee practitioner of SCAI;
Whereas Shannon Desaulniers (collectively with Carson, the “Trustees”) is the holder of an individual licence as a licensed insolvency trustee and is employed by SCAI;
Whereas the Office of the Superintendent of Bankruptcy (“OSB”) conducted a trustee office visit of SCAI’s practice and provided to the Trustees a Licensed Insolvency Trustee Office Visit Report;
Whereas the Licensed Insolvency Trustee Office Visit Report identified a significant number of serious issues with the handling of estate trust funds and banking; and deficiencies and non-compliance with respect to the general administration of files;
Whereas the OSB was in constant communication with SCAI and the Trustees to provide further information and to rectify the deficiencies that had been identified;
Whereas the Trustees have been given ample time, including several deadline extensions, to focus their attention on banking, including materially significant unauthorized withdrawals from estate trust funds, and have yet to deliver meaningful results;
Whereas SCAI’s current file inventory totals 413 estates;
Whereas according to the 2017 Annual Banking Report, the current estate inventory is comprised of an aggregate amount of approximately $1,441,979.60 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 paragraphs 14.03(1)(a), 14.03(1)(b) and 14.03(2)(b) of the Act apply;
I, Jack Steinman, in my capacity as delegate for the Superintendent, direct UBERbase and Chris Panagapko:
- to take any steps deemed necessary to prevent the complete or partial destruction, alteration, deletion, overwriting, stripping, or migration of electronic documents or data related to the files of estates administered by Michael Carson, Shannon Desaulniers and SCAI, as well as to prevent any action that would make these electronic documents or data incomplete or inaccessible;
- to provide to the OSB, upon request, access to electronic documents or data in the possession of UBERbase and Chris Panagapko related to the files of estates administered by Michael Carson, Shannon Desaulniers and SCAI.
That these directions take effect immediately and will remain in effect until a decision is made under subsection 13.2(5) or 14.01(1), or until such time as I am satisfied that the estates no longer require protection;
That in accordance with subsection 14.03(3) of the Act, these directions bind UBERbase and Chris Panagapko, 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 20th day of December 2017.
Regional Director, Ontario Region
- Date modified: