Sam Lévy and Sam Lévy & Associés Inc. — February 15, 2013

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.

OSB File No: 12-01

Before William R. James, Superintendent of Bankruptcy

In the matter of a trustee's professional conduct pursuant to section 14.01 of the Bankruptcy and Insolvency Act concerning:

Louis Nolet, Senior Bankruptcy Analyst – Applicant

-and-

Sam Lévy, an individual trustee – Respondent

-and-

Sam Lévy & Associés Inc., a corporate trustee – Respondent


Reasons for Decision and Order

  1. This decision is taken based on the consideration of the following facts and events, which have been provided to the Superintendent and agreed to by the parties:
    1. On , the Superintendent of Bankruptcy, acting through Mr. Robert Massé, issued a series of directions for conservatory measures to the trustees Sam Lévy, an individual trustee and Sam Lévy & Associés Inc., a corporate trustee, all pursuant to section 14.03 of the Bankruptcy and Insolvency Act (BIA);
    2. The trustees at issue contested said directions for conservatory measures;
    3. On , the Superintendent of Bankruptcy, acting through Mr. Louis Nolet, informed the trustees by correspondence that a disciplinary process against them was commenced;
    4. The trustees at issue contest the undertaking of a disciplinary process against them;
    5. While neither admitting the merit of the directions for conservatory measures nor the investigation report submitted to them on , the trustees advised the Superintendent of their intention to put an end to their court proceedings and to cease practicing their professions as trustees for health reasons, by consenting to the cancellation of their respective licences, in accordance with the provisions of section 14.01 of the BIA;
    6. The appropriate measures were taken to ensure that the administration of the trustees' files was entrusted to another licensed trustee;
    7. The parties believe that it is not necessary to further pursue the disciplinary proceedings that have begun.
  2. The trustee has been provided notice by the Superintendent, pursuant to subsection 14.02 (1) of the BIA.
  3. Both parties have been provided the opportunity make representations on any outstanding matters.
  4. In light of the above, the need for a hearing on the merits of this matter is obviated.
  5. After consideration of the circumstances of the present matter including the above mentioned events agreed by the parties, it appears to me that the cancellation of the trustees' licences would be in the public's interest, in accordance with section 14.01 of the BIA.
  6. Therefore, in my capacity as Superintendent of Bankruptcy, I hereby order:
    1. The cancellation of trustee licence number 1764 issued to Sam Lévy; and
    2. The cancellation of trustee licence number 2252 issued to Sam Lévy & Associés Inc.

Given in Ottawa, Ontario, pursuant to section 14.01(2) of the BIA.

Translation

Space to insert signature

William R. James,
Superintendent of Bankruptcy

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