OSB File No.: 979109
Before Elisabeth Lang, Superintendent of Bankruptcy
In the matter of the cancellation of a trustee licence pursuant to paragraph 13.2(5)(a) of the Bankruptcy and Insolvency Act concerning:
Office of the Superintendent of Bankruptcy Canada
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Donna Marie Cairns, individual trustee licence number 2377
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Cooper & Company, corporate trustee licence number 2794
Section 13.2(5) Decision
- This decision is taken based upon consideration of the following:
- Conservatory measures were issued on October 31, 2017 with respect to the seizure of the estates of Donna Marie Cairns and Cooper & Company following a review of banking records of estate trust accounts that identified that the Licensed Insolvency Trustee (LIT) made materially significant unauthorized withdrawals from estate trust funds;
- The Superintendent used the Request for Standing Offer, and resulting Standing Offer Agreements, in effect at that time to appoint Dodick Landau Inc. as Guardian Trustee at no cost for the Office of the Superintendent of Bankruptcy to complete the administration of the seized estate files;
- On November 28, 2017, the Ontario Superior Court ordered that effective December 1, 2017, the LIT firm of Dodick Landau Inc. be appointed guardian for all files associated with Donna Marie Cairns and Cooper & Company and ordered the substitution of Dodick Landau Inc. to all Cooper & Company Ltd. estate files;
- On December 14, 2017, a Senior Bankruptcy Analyst of the Office of the Superintendent of Bankruptcy was appointed to conduct a professional conduct investigation into the conduct of the LIT per paragraph 5(3)(e) of the BIA;
- On June 12, 2018, the LIT was formally charged with one count of criminal breach of trust contrary to Section 336 of the Criminal Code of Canada on the basis that the LIT, being the trustee of money for use of other persons, with the intent to defraud, and in contravention of that trust, converted part of the trust funds to an unauthorized use.
- On June 12, 2018, the LIT was formally charged with one count of laundering proceeds of crime contrary to Section 462.31 of the Criminal Code of Canada on the basis that the LIT used certain monies with the intent to conceal or convert that property or those proceeds knowing or believing that such were obtained or derived directly or indirectly as a result of the commission of an offence;
- On January 22, 2020, the LIT pled guilty to the indictable offence of criminal breach of trust contrary to Section 336 of the Criminal Code of Canada and on October 22, 2021 the LIT was sentenced to two (2) years imprisonment and ordered to pay restitution payments in the amount of $580,617.75;
- On March 31, 2022, the LIT was served notice, pursuant to subsection 13.2(6) of the Bankruptcy and Insolvency Act, of the reasons for the Superintendent of Bankruptcy’s intended decision.
- Therefore, LIT licence numbers 2377 (individual licence of Donna Marie Cairns) and 2794 (corporate licence of Cooper & Company), are hereby cancelled pursuant to paragraph 13.2(5)(a) of the Bankruptcy and Insolvency Act.
Signed at Ottawa, Ontario, on April 14, 2022, pursuant to subsection 13.2(5) of the Bankruptcy and Insolvency Act.
Superintendent of Bankruptcy