Frank Sheldon Kisluk and Frank S. Kisluk Limited —

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
Frank Sheldon Kisluk
Holder of a Trustee Licence
for the Province of Ontario
Frank S. Kisluk Limited
Holder of a Corporate Trustee Licence
For the Province of Ontario

Decision under the Bankruptcy and Insolvency Act
In Respect of Professional Conduct

This decision is rendered as a result of a joint submission by the parties in order to obviate the necessity for a hearing on the merits.

An initial pre-trial telephone conference had been held on and the parties made certain undertakings thereat. A second conference was then scheduled for to finish preparations for the hearing on the merits.

As undertaken, the Trustees' response to the Analyst's report was received in April followed by a joint statement of facts in May, Counsel for the Analyst having elected not to reply in writing to the response of the Trustees. The parties jointly requested a postponement of the second conference, to which the undersigned consented, and the second conference was duly held on .

At the second conference, Counsel advised the Delegate that there would be no need for a hearing on responsibility, and that they were in the process of finalizing a joint submission to the Delegate, which, if ratified by him, could hopefully dispose of the matter of sanctions or penalties without any hearing whatsoever.

The electronic version of the joint submission was received on and , in signed pdf format from the Trustees and in Word format from the Analyst. A copy of the Word version is attached hereto to form part hereof. It embodies a draft submitted to me for acceptance, and contains numerous terms and conditions.

After noting certain imperfections in the draft as submitted, I am nonetheless inclined to accept the parties' agreement. However it seems to me that problems may conceivably arise in its interpretation or execution, or as a result of any failure by the Trustees to comply in full and timely fashion with their undertakings, resulting in the need for further action by me.

I will therefore remain seized of this case in order to be able to intervene further to resolve any difficulties of any nature whatsoever, including those arising from any action or inaction by the Trustees, or from any ambiguity, contradiction, or lacuna in the joint submission, and in order to render another decision later if this seems necessary or desirable.

The present decision may thus be considered to be an interim one, unless no further action by the undersigned proves to be necessary to finally dispose of these proceedings. If further action is required, the parties will of course have the right to make representations and/or to request a hearing on any outstanding matters, and I will deal with such requests as and if they arise.

For the foregoing reasons, the undersigned Delegate Ratifies the joint submission and agreement of the parties attached hereto to form part hereof for all legal purposes;

Declares it to be binding and executory as if it were a decision of this tribunal, and orders the Trustees to conform thereto, under pain of all legal penalties;

Declares that he remains seized of this case, and reserves the right to render any further orders or decisions which may be necessary to give effect to or complete the said agreement, or to finally dispose of the present case, and to impose any further sanctions or penalties which may be appropriate or in the event of any failure by the Trustees to comply integrally with their obligations under the present decision for any reason and in any way whatsoever.

Signed at Montreal this

The Honourable Perry Meyer, Q.C.
Delegate of the Superintendent of Bankruptcy

This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.