Directions for Conservatory Measures to TD Canada Trust, East York Town Centre, 45 Overlea Blvd., Toronto, Ontario, M4H 1C3 ()
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:
Edward Carleton White
Edward White & Associates Inc.
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 Edward Carleton White (the trustee) is the holder of an individual licence as trustee in bankruptcy;
Whereas Edward White & Associates Inc. is the holder of a corporate licence as trustee in bankruptcy;
Whereas the trustee is the sole practitioner of Edward White & Associates Inc.;
Whereas the trustee's inventory consists of 272 open estates;
Whereas on March 17, 2011, the trustee contacted Joy Shortt, Senior Bankruptcy Analyst (SBA) of the Office of the Superintendent of Bankruptcy (OSB) and informed her that:
- The trustee's practice is not doing well and therefore, he plans to wind up his practice;
- The trustee owed 2½ months in rent arrears for his office located at 65 Overlea Boulevard, Suite 260, Toronto, Ontario and, believed that the landlord was likely to terminate the lease;
- The trustee had talked to certain insolvency practitioners in the area but did not have any offers or ongoing negotiations to report in respect of his practice or files under his administration;
- The trustee had laid off his two employees as he was unable to pay their salaries and, had removed the servers to an outside storage facility in Oshawa, Ontario; and,
- The trustee was not accepting any new appointments.
Whereas on March 17, 2011, the SBA asked the trustee for his current summary of estate balances, copies of the most recent bank statements along with the bank reconciliations for the month of January 2011 and, the landlord's contact information;
Whereas on March 17, 2011, the trustee responded to the SBA and provided the information pertaining to the landlord but failed to provide the requested bank statements, reconciliations and the summary of estate balances; stating instead, that the January 2011 banking documents have already been filed and it would be easier for him to provide the February 2011 trust account reconciliation;
Whereas on March 18, 2011, the trustee spoke with Abubakar Khan, Assistant Superintendent of the OSB and confirmed the facts previously reported to the SBA; informed that he expects that the landlord will terminate the lease before the end of March 2011; and, was advised that under the given facts and circumstances, the OSB shall be considering conservatory measures to protect the estates under the trustee's administration;
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(2)(a) and (e) of the Act apply;
I, Karen Smith, in my capacity as delegate for the Superintendent, direct TD Canada Trust, East York Town Centre, 45 Overlea Blvd., Toronto, Ontario, M4H 1C3 that, pursuant to sections 14.03(1)(b) and (c) of the Act:
- it consider upon receipt of the present directions, Abubakar Khan, Guardian Trustee, as the only authorized signatory as relates to any operations on the funds credited to the estates of bankruptcies and proposals administered by Edward Carleton White or Edward White & Associates Inc.
- it make no debit, payment or transfer of funds credited to, or which ought to have been credited to, the estates of bankruptcies and proposals administered by Edward Carleton White or Edward White & Associates Inc. without the signature of Abubakar Khan, Guardian Trustee;
- it not pay out of these accounts: cheques, bills of exchange, bank drafts or other instruments, issued before the receipt of these directions that are presented for payment after the receipt of these directions, without these cheques, bills of exchange, bank drafts or other instruments being signed by Abubakar Khan, Guardian Trustee;
- it submit all statement of accounts, accepted cheques and other documents or information having to do with the above-mentioned estate trust bank accounts to Abubakar Khan, Guardian Trustee, Office of the Superintendent of Bankruptcy, 25 St. Clair Avenue East, Suite 304, Toronto, Ontario, M4T 1M2;
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 TD Canada Trust, which 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 Toronto, Ontario, this 7 day of October, 2011
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.
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