Edward Bryce Quon; Quon & Associates Ltd.
Directions for conservatory measures to the Official Receiver—December 10, 2002
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:
Quon and Associates Ltd.
Edward Bryce Quon
Instructions For Conservatory Measures
(section 14.03 of the Bankruptcy and Insolvency Act)
Whereas the Bankruptcy and Insolvency Act provides the Superintendent of Bankruptcy with the general power to supervise the administration of all estates and matters to which the Act applies;
Whereas the Toronto Division Office of the Superintendent of Bankruptcy conducted a monitoring of Quon and Associates Ltd on August 20 and 21, 2002 where cash receipts were identified without being deposited to their respective estate trust bank accounts;
Whereas the Toronto Division Office of the Superintendent of Bankruptcy did not receive a satisfactory response from the trustee regarding discrepancies between estate ledgers, cash receipts book records, bank deposit slips and estate bank statements following correspondence exchanged in August 2002 ;
Whereas the Toronto Division Office of the Superintendent of Bankruptcy requested a special audit of Quon and Associates Ltd to determine the extent of the serious deficiencies discovered during the monitoring visit of August 2002;
Whereas the special audit started on September 23, 2002 and on October 6, 2002, the auditor reported in part that:
- further cash receipts were not deposited to their respective estate trust bank accounts in accordance with the requirements of the Act;
- a significant number of bank accounts are not held in trust;
- a significant sum of money is invested in GIC's without being able to match the amount of the investment to the estate ledgers or estate bank statements;
Whereas Karen Smith, Acting Division Assistant Superintendent of Bankruptcy — Toronto Division Office asked the trustee by letter dated November 7, 2002 to submit to the Court within 30 days a report under Subsection 34(2) of the Bankruptcy and Insolvency Act for those Summary and Ordinaries bankruptcy estates which remain open over 36 months as set out in the National Open inventory Listing;
Whereas a copy of those reports was requested no later than December 7, 2002 and that as of the date of signature of these directions, no such reports were received at the Toronto Division Office;
Whereas the Superintendent of Bankruptcy may and must, for the protection of an estate, exercise the powers referred to in subsection 14.03(1) of the Act in the circumstances stipulated in subsection 14.03(2) of the Act;
Whereas the Superintendent of Bankruptcy has delegated to the Deputy Superintendent Programs, Standards and Regulatory Affairs in accordance with subsection 14.01(2) of the Act, in certain situations mentioned in subsection 14.03(2), his powers as specified at subsection 14.03(1) of the Act, copies of which delegation are attached along with copies of subsections 14.01(2) and 14.03(1) to (4) of the Act;
Whereas paragraphs 14.03(1)(d) and (2)(b) of the Act apply;
I, Alain Lafontaine, in my capacity as Deputy Superintendent (Programs, Standards and Regulatory Affairs), give instruction to:
The Official Receiver to not appoint Edward Bryce Quon or Quon and Associates Ltd. to administer any new estates;
These instructions take effect immediately and will stay in place until further notice or until a decision is rendered under section 14.01 of the Act;
In accordance with subsection 14.03(3) of the Act, these instructions bind their addressee, who must comply with them;
In accordance with subsection 14.03(4) of the Act, a person who complies with the present instructions is not liable for any act done by the person only to comply with them.
Signed in the City of Ottawa, Ontario, December 10, 2002
Deputy Superintendent (Programs, Standards and Regulatory Affairs)
- Date modified: