Directions to the Royal Bank of Canada—December 2, 2019

Conservatory Measures

CANADA

Directions to the Royal Bank of Canada
1260 boul. Lebourgneuf, Quebec, Quebec, G2K 2G2
(December 2, 2019)

In the matter of:
Jean Lelièvre and
Jean Lelièvre Syndic

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 Jean Lelièvre is the holder of an individual licence as trustee in bankruptcy (3079);

Whereas Jean Lelièvre Syndic is the holder of a corporate licence as trustee in bankruptcy (3682);

Whereas Jean Lelièvre carries out his professional activities within Jean Lelièvre Syndic ;

Whereas to ensure the practices of the various trustees across the country are compliant, the Superintendent carries out monitoring activities to ensure that trustees administer files in accordance with legal requirements and carry out their responsibilities with care and diligence;

Whereas on October 24, November 19 and 20, 2019, the Office of the Superintendent of Bankruptcy (OSB) conducted a visit of the trustee’s office in relation to the compliance of the trustee's practices regarding advances on the trustee’s fees and that twenty-nine ordinary administration estates were reviewed;

Whereas of this number, seventeen estates included withdrawals of advances on his remuneration without the approval of creditors, inspectors, or the court, as required by subsection 25(1.3) of the Act and paragraph 4 of Directive No. 27R – Advances of Trustee’s Remuneration for Bankruptcies under Ordinary Administration, for a total amount of $161,162 (with taxes) and that of this amount, $95,634 (with taxes) were still untaxed as of November 21, 2019;

Whereas among the withdrawals for unauthorized advances of trustee fees, two are described as « Retraits au comptoir » [teller withdrawal] according to the account statement and total an amount of $27,709.84 (with taxes). These amounts have been recorded by the trustee under the item « Honoraires du syndic » [Trustee fees] and no cheque number appears, for these entries, in the column « Reçu/Date du chèque » [Receipt/Date of cheque] where one would usually find the cheque numbers;

Whereas twenty summary administration estates were also reviewed and, of these, seventeen estates included final fees collected before the time limit set out in paragraph 65(1)(a) of the Bankruptcy and Insolvency General Rules (the Rules). These fee withdrawals took place between January 29, 2018, and September 17, 2019, for a total amount of $35,401 (including taxes);

Whereas these premature withdrawals in the summary administrations occurred after the Trustee was reminded in writing (on January 18, 2018) that this practice is not compliant, and, with one exception, after the Trustee responded (on February 14, 2018) in writing that the trustee’s fees would be withdrawn within 30 days of the deemed taxation;

Whereas I believe on reasonable grounds that the estates require protection;

Whereas the Superintendent of Bankruptcy 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 subsection 14.03(2) of the Act;

Whereas the Superintendent of Bankruptcy has delegated to me, in accordance with subsection 14.01(2) of the Act, the powers of the Superintendent as specified at subsection 14.03(1) of the Act, in the circumstance referred to in subsection 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)a), 14.03(1)b), 14.03(1)c) and 14.03(2)b) of the Act apply;

I, Samra Rabie, in my capacity as delegate for the Superintendent, hereby instruct the Royal Bank of Canada branch located at 1260 boul. Lebourgneuf, (Quebec), Quebec, G2K 2G2 pursuant to paragraphs 14.03(1)(a), (b) and (c) of the Act to:

1. provide, by the close of business on December 2, 2019, a list of all trust accounts (including the balance of each account as of December 2, 2019) in the name of Jean Lelièvre and Jean Lelièvre Trustee, trustee in bankruptcy, under their control or administered by them, to Louis Nolet, CPA, CA, Assistant Superintendent, Office of the Superintendent of Bankruptcy, 1550 avenue d'Estimauville, Suite 702, Quebec, (Quebec) GH1J 0C4; 

2. 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 Jean Lelievre & Jean Lelièvre Syndic, without these cheques, debits, payments or transfers being countersigned by Mr. Louis Nolet, CPA, CA, Assistant Superintendent, or Ms. Lyne Larocque, Senior Bankruptcy Analyst, or Ms. Johanne Picard, Senior Bankruptcy Analyst; 

3. not pay out of these accounts any 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, bank drafts or other instruments, being countersigned by Mr. Louis Nolet, CPA, CA, Assistant Superintendent, or Ms. Lyne Larocque, Senior Bankruptcy Analyst, or Ms. Johanne Picard, Senior Bankruptcy Analyst; 

These instructions are effective immediately and will remain in effect until such time as the undersigned determines that the assets no longer require protection. 

In accordance with subsection 14.03(3) of the Act, these directions bind the Royal Bank of Canada, who must comply with them. 

Pursuant to subsection 14.03(4) of the Act, a person who complies with these directions is not liable for any act done by that person only to comply with these directions. 

Signed at the City of Montreal, in the province of Quebec, this 2^nd day of December 2019.

Samra Rabie
Regional Director, Office of the Superintendent of Bankruptcy