James Bradfield Walker; James B. Walker & Co. Ltd.
Directions to the Royal Bank of Canada in the matter of James Bradfield Walker—
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.
Office of the Superintendent
Direction to the Royal Bank of Canada
PO Box 4047, Term A, Toronto, Ontario, M5M 1L5
In the matter of: James Bradfield Walker
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 James Bradfield Walker (the Trustee) is the holder of an individual license as trustee in bankruptcy;
Whereas a banking review conducted on September 13, 2010, at the trustee’s principle business location identified the following deficiencies in the accounts of the Trustee:
- a majority of files sampled did not have bank statements on individual accounts since January 2010;
- it was not possible to verify the funds held in trust at Royal Bank without proper bank statements;
- an individual estate file, that had been open for a year, had a payment of $1 400.00 made but the Summary Statement from the bank did not show these funds in the estate account;
Whereas the Trustee met with Kyla Nauman, Senior Bankruptcy Analyst (the "SBA"), on September 14, 2010. During the meeting the Trustee informed the SBA that he felt it was time consuming and tedious to complete bank reconciliations each month if there had been no activity on the account. The Trustee provided a Summary Statement from Royal Bank, dated August 31, 2010, that verified the money held in each individual bank account. The Summary Statement detailed the money in the account at the beginning of the month, the debits and credits made, and the closing bank balance for the month;
Whereas the Trustee agreed to provide a more detailed bank reconciliation on each account by Friday, October 1, 2010, to the SBA. The SBA also requested that a detailed bank reconciliation be completed for a period of six months;
Whereas after meeting with the Trustee OSB officials reviewed additional files of the Trustee. After that review the Trustee informed the SBA that some money that was to be deposited to trust accounts by the office administrator had not been deposited and some money was missing from estate trust accounts. At this time, the Trustee is unable to account for how much money may be missing;
Whereas OSB officials are unable to identify the amount of money that may have been diverted from trust accounts;
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 paragraphs 14.03(1)(c) and 14.03(1)(d) of the Act apply;
I, Fred Sheeler, in my capacity as delegate for the Superintendent;
Direct The Royal Bank of Canada, PO Box 4047, Term A, Toronto, Ontario, M5M 1L5;
1. To consider, upon receipt of the present directions Bill Webster or Kyla Nauman, employees of the Office of the Superintendent of Bankruptcy, as the only two authorized co-signatories as relates to any operations on the funds credited to the estates of bankruptcies and proposals administered by James Bradfield Walker;
2. to make no debit and/or payment and/or transfers on funds credited or ought to have been credited to the estates of bankruptcies and proposals administered by James Bradfield Walker without the countersignature of Bill Webster or Kyla Nauman;
3. to 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 without these cheques, bills of exchange or drafts or other instruments being countersigned by Bill Webster or Kyla Nauman;
That these directions take effect immediately and will remain in effect until such time as the undersigned is satisfied that they are no longer required;
That in accordance with section 14.03(3) of the Act, these directions bind the addressee, who 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 London, Ontario, this 23rd day of September, 2010.
Office of the Superintendent of Bankruptcy
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