In the matter of:
Pfeiffer & Pfeiffer Inc.
Sydney H. Pfeiffer
Instructions for Conservatory Measures
(section 14.03 of the Bankruptcy and Insolvency Act)
Whereas the Bankruptcy and Insolvency Act provides the Superintendent with the general power to supervise the administration of all estates and matters to which the Act applies;
Whereas as of April 3rd, 2002, Mr. Robert Massé, Senior Evaluation Officer, contacted Sydney H. Pfeiffer, Trustee, in order to make arrangements with him for the purpose of beginning a general audit of the trustee firm Pfeiffer & Pfeiffer Inc., which audit in fact, began on May 1st, 2002;
Whereas during the course of this audit and despite the trustee's lack of collaboration with the Senior Evaluation Officer, Mr. Massé identified numerous deficiencies in the trustee's practice, specifically that estate funds are not invested in authorized investment products, the interest is not distributed and/or paid to estate accounts in accordance with the Superintendent's Directives, fees have been withdrawn without proper authorization, the accounting system as used by the trustee does not meet the minimal standards imposed by the Superintendent's Directives, thereby not permitting an adequate evaluation of accounting data or of transactions performed within each estate, and consequently, making it impossible to complete a proper assessment of the trustee's administration of the estates;
Whereas, when questioned about these various deficiencies, the trustee did not provide satisfactory explanations, he provided copies of bank documents which appeared to be incomplete and he refused to produce the originals of these documents, also, he did not produce other documents pertaining to accounting and banking matters as requested by the Senior Evaluation Officer, Mr. Massé;
Whereas the delays, the lack of cooperation by the trustee Sydney H. Pfeiffer, and his refusal to produce documents requested by the Senior Evaluation Officer, Mr. Massé prevented Mr. Massé from continuing his audit of the trustee firm Pfeiffer & Pfeiffer Inc. causing him to leave the trustee's office on June 19, 2002;
Whereas Mr. Raymond Villemure, Assistant Superintendent Audit, required the trustee Sydney H. Pfeiffer, by letter dated June 21, 2002 to produce various banking and accounting documents on or before June 26, 2002;
Whereas the trustee did not produce the requested documents;
Whereas the Superintendent of Bankruptcy may and must, for the protection of an estate, exercise the powers referred to in subsection 14.03(1) of the Act in the circumstances stipulated in subsection 14.03(2) of the Act;
Whereas the Superintendent of Bankruptcy has delegated to the Deputy Superintendent (Policy, Programs and Standards, now Programs, Standards and Regulatory Affairs) in accordance with subsection 14.01(2) of the Act, in certain situations mentioned in subsection 14.03(2), his powers as specified at subsection 14.03 (1) of the Act, copies of which delegation are attached along with copies of subsections 14.01(2) and 14.03(1) to (4) of the Act ;
In accordance with paragraph 14.03(1)b) of the Bankruptcy and Insolvency Act;
I, Alain Lafontaine, in my capacity as Deputy Superintendent (Programs, Standards and Regulatory Affairs), give instruction to:
Marcel Therien to copy all data pertaining to the Newviews software and/or all accounting data pertaining to the estates found in any electronic media located at the trustee's place of business at 1085, rue Saint-Alexandre, Room 400, Montreal, province of Quebec and to remit the said electronic data to Mr. Robert Massé;
These instructions take effect immediately and will stay in place until further notice or until a decision is rendered under section 14.01 of the Act;
In accordance with subsection 14.03(3) of the Act, these instructions bind their addressee, who must comply with them;
In accordance with subsection 14.03(4) of the Act, a person who complies with the present instructions is not liable for any act done by the person only to comply with them.
Signed, in the City of Ottawa, Ontario, July 5, 2002
Deputy Superintendent (Programs, Standards and Regulatory Affairs)
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.