Canada Post Corporation
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:
Pfeiffer & Pfeiffer Inc.
Sydney H. Pfeiffer
Instructions for Conservatory Measures
(section 14.03 of the Bankruptcy and Insolvency Act)
Whereas the Bankruptcy and Insolvency Act (the “Act”) provides the Superintendent with the general power to supervise the administration of all estates and matters to which the Act applies;
Whereas during the course of an investigation regarding the corporate trustee Pfeiffer & Pfeiffer Inc. and individual trustee Sydney H. Pfeiffer (the “Trustees”) and, with a view to protecting the estates, I issued conservatory measures on July 5, 2002, which, inter alia, required financial institutions where estate funds had been deposited to make no debit, payment or transfer on funds credited to the estates administered by the Trustees unless they were co-signed by a representative of the Office of the Superintendent of Bankruptcy;
Whereas, in light of the seriousness of the irregularities identified regarding the trust accounts administered by the Trustees, I issued, on July 24, 2002, a second series of conservatory measures which required the Official Receiver to take possession of the bankruptcy and proposal files administered by the Trustees and to deliver them to Samson, Bélair, Deloitte & Touche Inc., guardian trustee, (the “Guardian Trustee”) which has since been ensuring their administration;
Whereas since the issuance of these measures, the Trustees are no longer allowed to administer new estates or to conduct transactions in the estate bank accounts;
Whereas subsequent to the issuance of these measures, it was discovered that despite the conservatory measures put in place, the Trustees were conducting banking transactions with bankruptcy estate monies, through an account at the Bank of Montreal branch located at 630 René Lévesque Boulevard West, Montreal, Quebec;
Whereas the Trustees continued dealing with bankruptcy trust funds that were received at their place of business namely by mail with complete disregard for the conservatory measures issued on July 5 and July 24, 2002;
Whereas, in light of the seriousness of the irregularities identified, the Senior Analyst, Disciplinary Affairs, Sylvie Laperrière, on August 13, 2002, issued conservatory measures which, inter alia, required the Bank of Montreal to make no debit, payment or transfer on funds credited to the estates administered by the Trustees unless they were co-signed by a representative of the Office of the Superintendent of Bankruptcy and further, required the Guardian Trustee to specifically keep the records, deeds, books and documents related to files in which the Trustees have already obtained their discharge and complete the administration of these files;
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 in the above-mentioned circumstances, it has become necessary for the protection of estates to redirect the mail intended for the Trustees to Samson Bélair, Deloitte & Touche Inc.,
acting as guardian trustee;
Whereas the Superintendent of Bankruptcy has delegated to the Deputy Superintendent (Policy, Programs and Standards, now 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;
In accordance with paragraphs 14.03(1)a) and b) of the Act;
I, Alain Lafontaine, in my capacity as Deputy Superintendent (Programs, Standards and Regulatory Affairs), give instruction to:
Canada Post Corporation, ETC Leo-Blanchette, 555 McArthur, Ville St-Laurent, Quebec, H4T 1T4 to:
Redirect all mail or parcels addressed or redirected to by virtue of subsection 35(1) of the Act to:
Sydney H. Pfeiffer
Pfeiffer & Pfeiffer Inc.
1085, Saint-Alexandre St.,
Samson Bélair/Deloitte & Touche Inc.,
acting as guardian trustee at:
1 Place Ville-Marie, Suite 3000
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, September 17th, 2002
Deputy Superintendent (Programs, Standards and Regulatory Affairs)
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