Morley B. Miller — November 9, 2001
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.
Province of Ontario
In The Matter Of
Morley B. Miller
Holder Of A Corporate Trustee Licence
For The Province Of Quebec
Trustee Licensing Order
SS. 13.2(5) and 14.01 of the Bankruptcy and Insolvency Act
Whereas Morley B. Miller is a licensed trustee in the city of Montreal, province of Quebec;
Whereas from 1980 to 1997 the said Morley B. Miller operated a corporate licence under the name of M. Miller and Associates Ltd. / M. Miller et Associés Ltée;
Whereas in April 1997, a corporate licence was issued to Miller Hersh Inc. and whereas by court order, all files under Miller and Associates were transferred to Miller Hersh;
Whereas on January 17, 2001, the Senior Analyst, Ms. Sylvie Laperrière of the Office of the Superintendent of Bankruptcy, pursuant to the general delegation received by her as Senior Discipline Analyst for the application of subsection 14.04(1) of the Bankruptcy and Insolvency Act (hereinafter referred to as BIA) has submitted a report on the administration of the said Morley B. Miller;
Whereas the report submitted by the Senior Analyst identified a number of deficiencies and wrongdoings on the part of Morley B. Miller which were prejudicial to creditors as well as debtors, and which undermine the integrity of the bankruptcy and insolvency system and more specifically identified the following:
- Failure to maintain proper books and records by:
- not recording certain transactions;
- not carrying monthly reconciliations of trust accounts;
- not disposing of the balance funds in the trust accounts in accordance with the Act upon his discharge;
- not correcting book entry errors;
- Failure to maintain a proper internal control system;
- Failure to pay filing fees when they were due;
- In five estates, failure to include assets of various types (cars, shares, RRSP's, cash deposited with a third party, etc.) in the statement of affairs and to document adequately the value and disposition of such assets;
- In three estates, failure to maintain proper insurance on his name for all the usable property of the bankrupt;
- In two estates, failure to prepare the pre-bankruptcy tax returns;
- In two estates, failure to disclose in the 170 Report, information in his possession that debtors had been bankrupt earlier and in one estate failure to disclose all relevant information regarding an RRSP and a loaned vehicle which could justify a Court to refuse an unconditional discharge;
- In one case the trustee issued the debtor's certificate 13 months after the debtor became entitled to automatic discharge and after collecting $825 subsequent to the date of automatic discharge;
- In one case, after the debtors became automatically discharged by effect of section 168.1 BIA, the trustee issued a demand letter for the payment of $1169.00 indicating falsely that if the debtor failed to pay the said amount within 10 days the debtor would be referred as an undischarged bankrupt and that it would cost him more money to get his discharge;
- In four estates, failure to properly handle proofs of claims and to document his decision to pay funds to a claimant.
Whereas throughout her report, the Senior Analyst described the general lack of diligence of the trustee in dealing with matters in a timely manner with due consideration for all interests involved and with the level of care expected of trustees when they produce information to either the Court or the Superintendent's representatives that may affect the rights and interests of third parties or the public in general;
Whereas Morley B. Miller has not been designated as trustee to any new files since 1998;
Whereas Morley B. Miller has been offered a reasonable opportunity to be heard;
Whereas at a pre-hearing conference held on October 3, 2001 with the Senior Analyst and her counsel, Morley B. Miller indicated that he did not wish to be heard any further on this matter and did not offer any explanations for his administration;
Whereas in a letter dated August 28, 2001, Morley B. Miller wrote to advise the licensing section of the Office of the Superintendent of Bankruptcy that he did not intend to renew his licence for 2002 and that he would thereby put an end to the discipline proceeding and
Whereas the full scope of that letter is only understood by reading a separate letter issued the same day on behalf of Miller Hersh Inc.
Whereas pursuant to section 14.01(1.1) of the BIA a trustee cannot avoid or put an end to an investigation on his conduct under section 14.01(1) of the BIA simply by surrendering his licence.
Whereas , Morley B. Miller has been made aware during the preparatory conference call of the existence and substance of section 14.01(1.1) of the BIA
Whereas Mr. Morley B. Miller was offered the opportunity to consult a lawyer before this matter is brought to closure and he declined to do so.
Whereas Morley B. Miller indicated he did not wish to make any further representations on the matter raised in the report of the Senior Analyst.
Whereas the matter raised in the report appears to be sufficiently documented, the statements made in the said report must consequently be taken as accurately describing the administration and conduct of trustee Morley B. Miller.
I, the Superintendent of Bankruptcy, pursuant to the statutory powers provided to me by virtue of subsection 13.2(5) and 14.01(1) of the BIA, hereby Order as follows:
That the trustee licence of Morley B. Miller of Montreal, Quebec, be cancelled 10 days after the issuance of this order.
Ottawa, November 9, 2001
original signed by
The Superintendent of Bankruptcy
- Date modified: