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.
Order pursuant to sections 14.01 and 14.02 of the Bankruptcy and Insolvency Act
Whereas the Senior Analyst issued a report dated alleging contraventions as against Allen W. MacLeod, Donald A. MacLeod and D. & A. MacLeod Company Ltd. under the following headings:
- Bank balances of estate and insolvency files deposited in an 'Interest Account';
- Applications for trustee discharge while having a bank balance in the estate account;
- Surplus from the consolidated trust account for summary administrations deposited in an 'Interest Account';
- Moneys withdrawn for various uses from an 'Interest Account';
- Statements of Receipts and Disbursements;
- Unauthorized fee withdrawal in a consumer proposal;
- 'Clearing Account' used to post estate transactions;
- Co-mingling of funds in consolidated trust accounts;
- Summary estates converted to ordinary in the consolidated trust account for summary administrations;
- Division I proposals in the consolidated trust account for consumer proposals.
- Disbursement claimed for services performed by a related person;
- 'Third Party Account' used to post estate transactions;
- Moneys not deposited forthwith;
- Delay in the administration of estates;
- Estate of Mary Elizabeth Ann Ruda filed on ;
- Estate of 595880 Ontario Limited filed on
Whereas the undersigned was appointed as the delegate of the Superintendent of Bankruptcy to adjudicate this matter;
Whereas the Senior Analyst advised the undersigned on that she was not pursuing the allegations as against Donald A. MacLeod, and whereas this position was confirmed by the parties on , and as such the undersigned stayed allegations A, C, D, E, G, and L(a) as they relate to Donald A. MacLeod and F in its entirety;
Whereas the undersigned made a decision dated with respect to liability in which allegation L was sustained and the remaining allegations were dismissed (/eic/site/bsf-osb.nsf/eng/br02132.html), followed by a second decision dated February 5, 2009, with respect to the sanction for allegation L (/eic/site/bsf-osb.nsf/eng/br02141.html);
Whereas these decisions were the subject of an application by the Senior Analyst for judicial review by the Federal Court with respect to the dismissed allegations A, B, D, E, H, J and K, and the sanction with respect to L (Docket T-327-09);
Whereas on the Federal Court upheld the dismissal of allegations A, B, D, E and H, reversed the dismissal of J and K, and returned J, K and L to the undersigned for a new decision on sanction (http://decisions.fct-cf.gc.ca/en/2010/2010fc97/2010fc97.html);
Whereas the Federal Court's decision was subject to an appeal by the Senior Analyst filed with the Federal Court of Appeal with respect to allegations B, E and H (Docket A-66-10);
Whereas the undersigned made a third decision dated with respect to the sanction for allegations J, K and L (/eic/site/bsf-osb.nsf/eng/br02480.html);
Whereas on the Federal Court of Appeal reversed the dismissal of allegations B, E and H and returned same to the undersigned for a decision on sanction (http://decisions.fca-caf.gc.ca/en/2011/2011fca4/2011fca4.html);
Whereas the parties have entered into discussions in order to come to a negotiated resolution of this matter;
Whereas the parties have come to an agreement that this matter be at an end, and no further submissions be made with respect to matters B, E and H, if this agreement is acceptable to the undersigned;
And whereas I am of the view that it is in the interest of the parties and in the interest of justice to give effect to the agreement;
I, the undersigned, in my capacity as delegate of the Superintendent of Bankruptcy, declare closed the herein proceeding, and, in accordance with the powers vested in me under subsection 14.01(2) of the Act, endorse the agreement arrived at as between the parties.
DATED at Ottawa this .
Original signed
The Honourable James B. Chadwick, Q.C.
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.