Leyshon-Hughes (Ontario) — June 24, 2004
Province of Ontario
Office of the Superintendent of Bankruptcy
Trustee and Corporate Trustee Licence
Limitation Order Issued Under
The Bankruptcy and Insolvency Act
In the Matter of Ernest Leyshon-Hughes
Holder of a Trustee Licence
for the Province of Ontario
Whereas Ernest Leyshon-Hughes, licensed Trustee operated an office in the City of Kitchener, Ontario;
Whereas, the Senior Analyst, Disciplinary Affairs (Senior Analyst) of the Office of the Superintendent of Bankruptcy (OSB) has submitted a Report (the Report) on the administration of Ernest Leyshon-Hughes, Trustee, pursuant to the general delegation received regarding the application of subsection 14.02(1) of the Bankruptcy and Insolvency Act (BIA);
Whereas the Report identifies a number of irregularities and deficiencies where the Trustee has failed to properly fulfil his statutory duties of an administrative nature in respect of the Trustee's administration of estates during the period covered by the Report, based on an audit report dated October 1999 and the trustee's reply to the Audit Report dated January 29, 2000 including :
- Delay in deposit of cash receipts to estate accounts contrary to Directive #5, paragraph 4.(1)(B).
- Failure to reconcile the Consolidated Bank Account (C.B.A.) on a timely basis as required by Directive #5, paragraph 10.
- Failure to post cheques written on a timely basis pursuant to Directive #5, paragraph 9.(B).
- Failure to pay interest in an ordinary estate contrary to Directive #5, paragraph 4.(C).
- Failure to comply with S.152 of the Act when issuing dividends to creditors.
- Failure to take possession and control of assets pursuant to S.16.(3) of the Act or to follow up on potential estate assets in a timely manner and verify the Statement of Affairs pursuant to S.19.(3) of the Act.
- Failure to comply with Directive #7 on Inventory Taking.
- Failure to close estates administered under the Act in a timely manner pursuant to S.136.(2) of the Act.
- Problem with the ageing of files.
Whereas the Trustee indicated to the Senior Analyst that he did not wish to contest the facts as set out in the Report;
Whereas the Parties have agreed to resolve this matter by way of the Order herein;
Whereas the Parties have submitted to me this draft decision, which in my opinion is fair and reasonable in the specific circumstances of this case, and there is no reason to derogate from it;
I, Fred Kaufman, Delegate of the Superintendent of Bankruptcy, by virtue of the powers delegated to me under section 14.01 of the Bankruptcy and Insolvency Act,
Order that and subject to the successful completion of the Oral Board as described below, the trustee licence of Ernest Leyshon-Hughes be limited for a period of three (3) months from the date this Order comes into force (the Limitation Period), during which time the Trustee cannot be appointed to take on any new bankruptcies, proposals, receiverships or act as interim receiver but can continue to work on the files to which he has been appointed before the coming into force of this Order;
Order that at any time after the date of this Order, the Trustee successfully complete an ad hoc Oral Board, to be limited in scope to :
- "personal insolvencies" as defined by the OSB which scope will mean that questions will be limited to insolvencies concerning individuals who have not been carrying on any business, which definition has been agreed upon by the Trustee and to;
- insolvency related law particular to the Province of British Columbia (hereinafter referred to as the "Oral Board") before being able to resume his practice as a Trustee in bankruptcy;
Order that the trustee not be permitted to perform any type of bankruptcy or insolvency related work for another trustee or in conjunction with another trustee during the Limitation Period ;
Order that upon complying with the Limitation Period and upon successfully completing the Oral Board, the Trustee will be permitted to resume his practice as a Trustee in bankruptcy;
Order that in the event the Trustee does not comply with the Order herein, the Trustee shall be in default pursuant to paragraph 13.2(5) (b) of the Act.
Order that this Order shall come into force two days after the day on which it is signed ;
Toronto, Ontario, June 29, 2004
The Honourable Fred Kaufman, C.M. Q.C.
Delegate of the Superintendent of Bankruptcy
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.