Directions for Conservatory Measures to the Toronto Dominion Bank, 500 Saint Jacques Street, Montreal, Quebec (May 10, 2001)
In the matter of:
Samuel S. Lévy
Sam Lévy et Associés inc.
Instructions For Conservatory Measures
(Section 14.03 of the Bankruptcy and Insolvency Act)
Whereas the Bankruptcy and Insolvency Act provides the Superintendent with the general power to supervise the administration of all estates and matters to which the Act applies;
Whereas in October 1998, a preliminary audit report outlining numerous irregularities was provided to the trustee, and despite numerous promises to correct the situation made by the trustee since then, the situation has only deteriorated;
Whereas on July 14, 2000 a mandate to review the conduct of trustees Sam Lévy et Associés inc. and Samuel S. Lévy was conferred on Mr. Michel Leduc, Senior Analyst/Disciplinary Affairs, who is pursuing his investigation;
Whereas on January 15, 2001 auditors Louis Nolet and Richard Hunter began a general audit of the practice of trustee Sam Lévy et Associés inc. and exercised this mandate until March 23, 2001;
Whereas on April 27, 2001 auditors Nolet and Hunter provided me with an interim audit report and Mr. Michel Leduc provided me with an interim report on the trustee's conduct, both of which reveal that the estates under the administration of trustees Sam Lévy et Associés inc. and Samuel S. Lévy require protection;
Whereas the Superintendent of Bankruptcy may, 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 referred to 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) and (2)b) of the Bankruptcy and Insolvency Act;
I, the undersigned, Alain Lafontaine, in my capacity as Deputy Superintendent (Programs, Standards and Regulatory Affairs) give instruction to:
Toronto Dominion Bank, branch located at 500 Saint Jacques Street, Montreal, Province of Quebec:
- to make no debit and/or payment and/or transfers on funds credited to estates under the administration of: Sam Lévy et Associés inc., unless the cheques, debit notes, deposit and/or transfer certificates are co-signed by Laurent Lachance or Louis Nolet or Bernadette Blain, in addition to Samuel S. Lévy;
- not to pay, out of these accounts, any bills of exchange, cheques, bank drafts, certificates of deposit, or other such instruments that may have been issued prior to receipt of these instructions but are presented for payment after receipt of these instructions, unless said cheques, bills of exchange or bank drafts are co-signed by one of the above-named individuals, in addition to Samuel S. Lévy;
These instructions take effect immediately and will remain 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,
May 10, 2001
Programs, Standards and Regulatory Affairs
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.