Jean-Guy Daoust — April 19, 2013

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.

OSB File No.: 13-02

Before William R. James, Superintendent of Bankruptcy

In the matter of the suspension of a trustee licence pursuant to paragraph 13.2(5)(d) of the Bankruptcy and Insolvency Act (BIA) concerning Jean-Guy Daoust, individual trustee

Reasons for Decision and Order

  1. This decision is taken based on consideration of documents transmitted to the Superintendent on , by Mr. Robert Nehmé, Senior Bankruptcy Analyst (hereafter "Analyst").
  2. The report of the Analyst, which was reviewed by Mr. Jean-Guy Daoust, trustee in bankruptcy (hereafter "Trustee") without comments, describes the following facts and events:
    1. On , the Montréal Division of the Office of the Superintendent of Bankruptcy received a request to schedule a meeting of creditors in the matter of consumer proposal number 41-1690305;
    2. The consumer debtor was Mr. Jean-Guy Daoust, trustee in bankruptcy, holder of licence number 1560;
    3. Subsection 26(a) of the Directive 13R4 on Trustee Licensing indicates that a trustee must be solvent at all times; a state that may be compromised by the filing of a consumer proposal;
    4. On , the Trustee asked the Superintendent of Bankruptcy to temporarily suspend his licence in accordance with paragraph 13.2(5)(d) of the Bankruptcy and Insolvency Act (BIA), given that he had filed a consumer proposal;
    5. On , the Trustee indicated that he had suspended his trustee activities until such time as the Superintendent rendered his decision;
    6. The Trustee was informed that before removing the suspension, the Office of the Superintendent of Bankruptcy (OSB) would conduct an investigation into his solvency and any other relevant matter, if applicable;
    7. The Analyst recommended that the Superintendent accept the licence suspension request from the trustee.
  3. On , the Trustee received written notice of the reasons for the Superintendent's decision, in accordance with subsection 13.2(6) of the BIA.
  4. After consideration of the circumstances of the present matter, including the above mentioned events, in my capacity as Superintendent of Bankruptcy, I hereby order:
    • the suspension of trustee licence number 1560, issued to Jean-Guy Daoust, until such time as the Trustee demonstrates his solvency to representatives of the Office of the Superintendent of Bankruptcy as per the conditions to practise set out in subsection 26(a) of Directive 13R4 on Trustee Licensing.

Given in Ottawa, Ontario, , pursuant to subsection 13.2(5) of the Bankruptcy and Insolvency Act.

William R. James,
Superintendent of Bankruptcy

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