Directions for Conservatory Measures to Toronto-Dominion Bank, 55 King Street West, 20th Floor, Toronto, Ontario, M5S 1A2—

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: Melvin Charles Zwaig and Zwaig 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 Melvin Charles Zwaig (the trustee) is the holder of an individual license as trustee in bankruptcy;

Whereas Zwaig Associates Inc is the holder of a corporate licence as trustee in bankruptcy;

Whereas the trustee is the sole practitioner of Zwaig Associates Inc.;

Whereas Mr. Brian Haley from the Office of the Superintendent of Bankruptcy was informed by Ms Elizabeth Rawson that the trustee was hospitalized since the weekend of January 31/February 1, 2009 and that to this date, he had not returned to his office;

Whereas Mr. Avi Koren from the Office of the Superintendent of Bankruptcy went to St. Michael's Hospital and that he was told that Mr. Zwaig is in the Palliative Care unit and that Mr. Koren was also informed by Mr. Bill Wade, Director of the Palliative Care Unit, that the trustee was not allowed visitors other than family members due to his health condition;

Whereas on February 26, 2009 Ms. Dana Jurksaitis from the trustee's office informed Mr. Brian Haley from the Office of the Superintendent of Bankruptcy that Mr. Melvin Charles Zwaig had passed away that day;

Whereas a notice corroborating the death of Mr. Zwaig was published by the funeral director, Paperman and Sons Inc;

Whereas the trustee's file inventory totals 130 estates with an aggregate amount of approximately $730 000 in the trust bank accounts;

Whereas the Office of the Superintendent of Bankruptcy has been unable to identify any succession arrangement for the continued administration of the estates;

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 subsections 14.03(1)(b) and (c) and 2(a) of the Act apply;

I, Ann Speers, in my capacity as delegate for the Superintendent, direct The Toronto-Dominion Bank (55 King Street West, 20th Floor, Toronto, Ontario, M5S 1A2) that, pursuant to sections 14.03(1)(c) of the Act:

  1. 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 Zwaig Associates Inc and Melvin Charles Zwaig without the countersignature of Brian Haley or Mike Cacciavillani;
  2. it not pay out of these accounts: cheques, bills of exchange, bank drafts or other instruments, issued before the receipt of these directions which are presented for payment after the receipt of these directions;
  3. it submit all statements of accounts, accepted cheques and other documents or information having to do with the above-mentioned estate trust bank accounts, to Brian Haley, Senior Bankruptcy Analyst, Office of the Superintendent of Bankruptcy, 600-25 St-Clair Avenue East, Toronto, Ontario, M4T 1M2;

That these directions take effect immediately and will stay in place until such time as the undersigned is satisfied that the estates no longer require protection;

That in accordance with section 14.03(3) of the Act, these directions bind The Toronto-Dominion Bank of Canada, which 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 Toronto, Ontario, this 27th day of February, 2009

Ann Speers
Assistant Superintendent of Bankruptcy

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