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
Paul Rainville, A Licensed Trustee
For The Province Of Québec
Decision under the Bankruptcy And Insolvency Act
Whereas an official receiver conducted a visit of the offices of Samson Bélair/Deloitte & Touche Inc. from July 22 to 24, 1998, as well as follow-up visits in September and October 1998, as part of the monitoring program;
Whereas the monitoring report of the official receiver noted that the above-referenced licensed trustee failed in various respects to properly fulfil its statutory duties in the administration of its consolidated bankruptcy account for summary administrations;
Whereas this monitoring report resulted in the appointment of a Senior Analyst, Disciplinary Affairs, to conduct a disciplinary investigation;
Whereas the Senior Analyst, Disciplinary Affairs, issued a report on May 1, 2000, alleging that Trustee Paul Rainville failed to comply with the Statutes, Rules and Instructions applicable to trusts, namely in:
- failing to properly maintain a consolidated trust account for summary administrations as well as an accounting system allowing for an equitable monthly distribution of interest accrued in each estate account, of the aggregate interest accrued in the consolidated trust account;
- failing to distribute to the appropriate estate files interest accrued in his consolidated trust account for summary administrations which then amounted to a total of $58,946.82, the firm of Samson Bélair/Deloitte & Touche Inc. having subsequently submitted $15,496.82 of said amount to the Office of the Superintendent of Bankruptcy as undistributed funds;
- improperly withdrawing, on September 26, 1988, the amount of $10,000.00 from of its consolidated trust account used for summary administrations;
- improperly withdrawing, on April 16, 1990, the amount of $9,000.00 from its consolidated trust account used for summary administrations;
- improperly submitting, on September 23, 1992, to the firm of Samson Bélair/Deloitte & Touche Inc. the amount of $24,450.00 that had been withdrawn from its consolidated trust account used for summary administrations, the said amount having been thereafter submitted by the firm to the Office of the Superintendent of Bankruptcy as undistributed funds.
Whereas said Trustee Paul Rainville, though not having made any admission in respect of the offences alleged against him in the disciplinary report, did not seek to challenge the findings of the report;
Whereas said Trustee Paul Rainville has refrained from practicing as a trustee for the last two years approximately;
Whereas Trustee Paul Rainville does not intend to practice again as a trustee et has voluntarily surrendered his license;
Whereas Trustee Paul Rainville has bound himself to pay to the Office of the Superintendent of Bankruptcy, as undistributed funds, the amount of $19,000.00 within thirty (30) days from the date of this decision;
Whereas the parties have submitted to me the draft of this decision, which in my opinion is fair and reasonable in the specific circumstances of this case, and consistent with public policy;
By These Reasons:
I, the undersigned, Lawrence A. Poitras, Delegate of the Superintendent of Bankruptcy by virtue of the powers delegated to me under section 14.01 of the Bankruptcy and Insolvency Act,
Do acknowledge receipt of the trustee license voluntarily surrendered by Paul Rainville and, as a result,
Do cancel said license;
Do order said Paul Rainville to pay to the Office of the Superintendent of Bankruptcy the amount of $19,000.00 as undistributed funds, payment to be made within thirty (30) days from the day this order was signed.
Made in Montreal, this 14th day of February 2002.
original signed by
The Honourable Lawrence A. Poitras, Q.C.
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.