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.
In the matter of:
Claude Lacroix
formerly holder of an individual trustee licence
for the Province of Quebec
Pierre Martin
holder of an individual trustee licence
for the Province of Quebec
Raymond Chabot Inc.
holder of a corporate trustee licence
for the provinces of Quebec and Ontario
Decision on the professional conduct of the trustees rendered pursuant to the Bankruptcy and Insolvency Act
Whereas the licence of trustee Claude Lacroix expired on ;
Whereas Pierre Martin is the holder of an individual trustee licence for the Province of Quebec;
Whereas Raymond Chabot Inc. is the holder of a corporate trustee licence for the provinces of Quebec and Ontario, and operates an office in Chicoutimi;
Whereas Michel Leduc, Senior Advisor, in accordance with the generic delegation of the powers set out in subsection 14.01(1) of the Bankruptcy and Insolvency Act (hereinafter the Act), submitted to the Superintendent a report on the professional conduct of the above-mentioned trustees;
Whereas in that report, it was alleged that trustee Raymond Chabot Inc., acting through Claude Lacroix and Pierre Martin, neglected to disclose to the various parties involved any information regarding a fee guarantee in the matter of the bankruptcy of Rosaire Gagné;
Whereas in that report, it was alleged that the trustees did not appropriately document the bankruptcy files of Rosaire Gagné, Les Gîtes du Fjord Inc., 2750-4513 Québec Inc. and Construction Houde et Gagné Inc.;
Whereas in that report, it was alleged that the trustees' time sheets did not provide for rendering account of all the ongoing work that was transferred from the estate of the bankruptcy of Construction Houde et Gagné Inc. to the estate of the bankruptcy of 2750-4513 Québec Inc., and from the estate of the bankruptcy of Les Gîtes du Fjord Inc. to the estate of the bankruptcy of 2750-4513 Québec Inc.;
Whereas the trustees do not acknowledge the alleged offences;
Whereas the alleged offences date back to the years 1992 and 1995 and the various proceedings that followed them engendered trustee fees and expenses that have still not been submitted to the courts for taxation;
Whereas the parties submitted to me the text of this decision, which given the circumstances of this matter, appears to be fair, reasonable and in keeping with public order;
I, the undersigned, in my capacity as Delegate of the Superintendent of Bankruptcy, in accordance with the powers conferred on me pursuant to subsection 14.01(2) of the Act, approve the agreement reached and order as follows:
- that the fees of $16,520 paid by the estate of the bankruptcy of 2750-4513 Québec Inc. be reimbursed, out of the estate of the bankruptcy of Construction Houde et Gagné Inc. in the amount of $10,815, and out of the estate of the bankruptcy of Les Gîtes du Fjord Inc. in the amount of $5,705, to the estate of the bankruptcy of 2750-4513 Québec Inc., by no later than ;
- that, subject to subsequent taxation, trustee Raymond Chabot Inc. reimburse fee advances totalling $38,186 to the estate of the bankruptcy of 2750-4513 Québec Inc. no later than ;
- that in the event that Claude Lacroix wishes to reactivate her trustee licence, she may not do so before a period of four (4) months following the date of signature of this order;
- that the licence of trustee Pierre Martin be suspended for a period of four (4) weeks, beginning on , during which time he may not act in the capacity of trustee, nor accept any mandate pursuant to the Act, either in his own name or that of the corporate trustee;
- that the licence of trustee Pierre Martin be restricted, upon expiration of the suspension period mentioned in point four (4) above, for a period of four (4) weeks, during which time he may only file summary administration files or consumer proposals;
- that the licence of trustee Raymond Chabot Inc. be restricted for a period of three (3) weeks, beginning on , during which time the trustee may not make any new filings under the Act in the judicial districts of Chicoutimi, Alma or Roberval;
- that if the trustees fail to respect this order, they will be considered not to have met one of the conditions of their licence within the meaning of paragraph 13.2(5)b) of the Act.
Signed in Ottawa, Ontario,
Original signed by
Roger Tassé
Delegate of the Superintendent of Bankruptcy
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.