Protecting the public — Offences under the Bankruptcy and Insolvency Act (BIA) and the Criminal Code

What are the offences?

The most common offences committed under the Bankruptcy and Insolvency Act (BIA) and the Criminal Code are when the bankrupt:

  • Fraudulently disposes of property before or after the bankruptcy;
  • Makes false entries in a statement of account or hides, destroys or falsifies a document related to his/her property or affairs;
  • Obtains credit or any other good through false representations;
  • Conceals or fraudulently removes property, or conceals claims or debts;
  • Obtains credit or engages in trade without informing the people involved that he/she is bankrupt;Footnote 1
  • Refuses to respond fully and truthfully to questions posed during an examination held in accordance with the BIA .

See the Bankruptcy and Insolvency Act (sections 198 to 201) and the Criminal Code for a complete list of offences.

How are offences discovered?

The Office of the Superintendent of Bankruptcy (OSB) identifies possible offences through its detection programs or through complaints received from creditors, Licensed Insolvency Trustees (LITs) or the public. Learn more about the rights and responsibilities of creditors, LITs and the OSB

When the OSB has reason to believe that an offence has been committed, it sends the file to one of its three special investigation units. The investigation units work closely with the Royal Canadian Mounted Police (RCMP). In some cases, files are transferred to the RCMP .

Can I report offences?

If you suspect fraudulent activities in connection with a bankruptcy file, contact the OSB at the following toll-free number: 1-877-376-9902. Your comments or complaints will be registered and reviewed by a bankruptcy analyst, who will conduct any necessary verifications or inquiries.

What are the penalties?

Penalties are determined on a case-by-case basis. Below are summaries of some cases of abuse and fraud, as well as penalties imposed by the Court.


Case summaries

Case summaries include select examples of criminal/penal cases, which are written for ease of understanding. Users wishing full information on the cases should consult the court decision. The court decision prevails.

2023

Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $176,306. The bankrupt attributed the cause of their bankruptcy to a misfortune and lack of employment. Within a four month period before the bankruptcy the bankrupt incurred $209,000 in debt on five credit cards, four lines of credit and three car loans. The bankrupt obtained $24,000 in cash advances, made purchases of $27,158, and obtained three distinct car loans totalling approximately $133,634. The bankrupt made false representations when obtaining credit.

Summary of offences of the bankrupt

  • The bankrupt refused or neglected to answer fully and truthfully all proper questions put to the bankrupt at their examination under oath.
  • The bankrupt made a fraudulent disposition of the bankrupt’s property before or after the date of the initial bankruptcy event.
  • The bankrupt, without reasonable cause, failed to comply with an order of the court made under section 68 or to do any of the things required of the bankrupt under section 158 of the Bankruptcy and Insolvency Act.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a conditional jail term of 18 months to be served in the community, followed by a probation of 12 months with various conditions.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $197,296. The bankrupt attributed the cause of their bankruptcy to financial mismanagement, spouse’s unemployment, depression and the misfortune of having been defrauded by friends. Within an eleven month period before the bankruptcy, the bankrupt incurred over $149,814 in debt on nine credit cards, three lines of credit and one loan. The bankrupt obtained $85,000 in cash advances, effectuated a total of $14,970 in casino transactions, and made purchases of $33,985. The bankrupt made false representations when obtaining credit.

Summary of offences of the bankrupt

  • The bankrupt refused or neglected to answer fully and truthfully all proper questions put to the bankrupt at their examination under oath.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a conditional jail term of 18 months to be served in the community, followed by a probation of 24 months with various conditions.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $125,439. The bankrupt attributed the cause of their bankruptcy to the use of personal credit cards to invest in a failed business, unemployment and insufficient income. Within a seven month period before the bankruptcy the bankrupt incurred over $174,087 in debt on nine credit cards and one car loan. The bankrupt obtained $17,200 in cash advances, effectuated a total of $49,771 in casino transactions, and made extravagant purchases of over $54,825. These transactions were made possible due to twenty-two payments totalling $120,790 by NSF cheques. The bankrupt made false representations when obtaining credit.

Summary of offences of the bankrupt

  • The bankrupt made a fraudulent disposition of the bankrupt’s property before or after the date of the initial bankruptcy event.
  • The bankrupt, after or within one year immediately preceding the date of the initial bankruptcy event, obtained any credit or any property by false representations.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a conditional jail term of 12 months to be served in the community, followed by a probation of 12 months with various conditions and a restitution of $5,000.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $155,006. The bankrupt attributed the cause of their bankruptcy to financial mismanagement. Within a five month period before the bankruptcy the bankrupt incurred over $215,000 in debt on five credit cards, five lines of credit and one car loan. The bankrupt obtained over $139,000 in cash advances, transferred an additional $48,000 to third parties and made extravagant purchases of over $28,000. The bankrupt made false representations when obtaining credit.

Summary of offences of the bankrupt

  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a conditional jail term of 18 months to be served in the community, followed by a probation of 12 months with various conditions.


Background

On the date of their bankruptcy, the bankrupt reported assets $1,372,253 and unsecured liabilities of $45,090,482. The bankrupt attributed the cause of their bankruptcy to personal guarantee of bonds for a corporation that they were unable to service. Just prior to the assignment in bankruptcy, the bankrupt made several wire transfers totalling approximately $12.3 million dollars to a family member. The bankrupt told the LIT these transfers were actually funds they had been holding in trust for the family member, and they were now returning the funds. In the year prior to the assignment the bankrupt sold two of their businesses and a rental property, providing all funds to this same family member, stating to the LIT the funds had been held in trust and they were only returning the funds. The bankrupt failed to produce any information or documentation to support these claims that would allow the LIT to properly investigate the financial transactions.

Summary of offences of the bankrupt

  • The bankrupt made a false entry or knowingly made a material omission in a statement or accounting.
  • The bankrupt, without reasonable cause, failed to comply with an order of the court made under section 68 or to do any of the things required of the bankrupt under section 158 of the Bankruptcy and Insolvency Act.

Court decision

The bankrupt pleaded guilty to one count under the Bankruptcy and Insolvency Act. The bankrupt received a conditional discharge, and was sentenced to 12 months of probation with six conditions, including 60 hours of community service.


Background

On the date of their bankruptcy, the bankrupt reported assets $85,350 and unsecured liabilities of $109,342. The bankrupt attributed the cause of their bankruptcy to unemployment since 2015, business failure and helping family overseas. Within the 12 month period before bankruptcy, the bankrupt obtained credit by false representations and further knowingly made material omissions on the Statement of Affairs. The bankrupt did not disclose all known creditors.

Summary of offences of the bankrupt

  • The bankrupt, without reasonable cause, failed to comply with an order of the court made under section 68 or to do any of the things required of the bankrupt under section 158 of the Bankruptcy and Insolvency Act.
  • The bankrupt, by deceit, falsehood or other fraudulent means, defrauded their creditors in an amount over $5,000 by accessing credit made available as the result of payments issued on accounts for which there was insufficient funds.

Court decision

The bankrupt pleaded guilty to one count under the Bankruptcy and Insolvency Act. The bankrupt was sentenced to 12 months probation and 75 hours of community service.


2022

Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $53,037. The bankrupt attributed the cause of their bankruptcy to poor financial management. Since 1988, the bankrupt had filed a total of six (6) bankruptcies and made false representations when obtaining credit.

Summary of offences of the bankrupt

  • The bankrupt, after or within one year immediately preceding the date of the initial bankruptcy event, obtained credit or property by false representations.
  • The bankrupt, without reasonable cause, failed to comply with an order of the court made under section 68 or to do any of the things required of the bankrupt under section 158 of the Bankruptcy and Insolvency Act.
  • The bankrupt obtained credit of $1,000 or more from any person or persons without informing them that they are an undischarged bankrupt.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of two counts under the Criminal Code, and was sentenced to a conditional jail term of 10 months to be served in the community, followed by a period of probation of 12 months with various conditions.


Background

On the date of their bankruptcy, the bankrupt reported assets of $278,820 and liabilities of $754,011, of which $387,443 represented tax debt. The bankrupt attributed the cause of their bankruptcy to reassessment from the government and insufficient income. Within a six month period before the bankruptcy, the bankrupt incurred $52,801 in credit card debt. The bankrupt obtained $40,538 in cash advances and made extravagant purchases of over $35,000. The bankrupt made false representations when obtaining credit.

Summary of offences of the bankrupt

  • The bankrupt made a false entry or knowingly made a material omission in a statement or accounting.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a conditional jail term of 4 months to be served in the community, followed by a probation of 12 months with various conditions.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $128,230. The bankrupt attributed the cause of their bankruptcy to illness, unemployment and over-indebtedness. In a two month period before the bankruptcy the bankrupt incurred $112,308 in debt on fifteen credit cards. The bankrupt obtained $47,731 in cash advances and made extravagant purchases of over $82,276. The bankrupt made false representations when obtaining credit.

Summary of offences of the bankrupt

  • The bankrupt refused or neglected to answer fully and truthfully all proper questions put to the bankrupt at their examination under oath.
  • The bankrupt made a false entry or knowingly made a material omission in a statement or accounting.
  • The bankrupt, after or within one year immediately preceding the date of the initial bankruptcy event, obtained credit or property by false representations.
  • The bankrupt, after or within one year immediately preceding the date of the initial bankruptcy event, fraudulently concealed or removed property of a value of fifty dollars or more.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a jail term of 8 months, followed by a probation of 12 months with various conditions.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $1,138,004. The bankrupt attributed the cause of their bankruptcy to business failure. The bankrupt failed to report the disposal of or possession of property at the time of their assignment in bankruptcy. The bankrupt provided conflicting statements and failed to properly identify all assets to the LIT during the administration of the estate.

Summary of offences of the bankrupt

  • The bankrupt made a false entry or knowingly made a material omission in a statement or accounting.
  • The bankrupt, without reasonable cause, failed to comply with an order of the court made under section 68 or to do any of the things required of the bankrupt under section 158 of the Bankruptcy and Insolvency Act.

Court decision

The bankrupt pleaded guilty and was sentenced to a conditional jail term of 3 months, to be served in the community, followed by a period of probation of 12 months with various conditions.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $112,400. The bankrupt attributed the cause of their bankruptcy to over extension of credit, mismanagement of financial affairs, marital separation and inability to service the debt-load. In the three month period prior to the bankruptcy, the bankrupt purchased in excess of $40,000 in jewellery, disposed of the jewellery for approximately $6,000, and made no payments on credit cards.

Summary of offences of the bankrupt

  • The bankrupt, after or within one year immediately preceding the date of the initial bankruptcy event, hypothecated, pawned, pledged or disposed of any property obtained on credit and not paid for.

Court decision

The bankrupt pleaded guilty to one count under the BIA and received a six-month conditional sentence of jail to be served in the community.


Background

On the date of their bankruptcy, the bankrupt reported assets of $14,700 and unsecured liabilities of $164,208. The bankrupt attributed the cause of their bankruptcy to unemployment and health issues. In the 24 months preceding the bankruptcy, the bankrupt incurred $218,000 in debt on three credit cards and one car loan. The bankrupt made false representations when obtaining credit.

Summary of offences of the bankrupt

  • The bankrupt made a fraudulent disposition of the bankrupt’s property before or after the date of the initial bankruptcy event.
  • The bankrupt refused or neglected to answer fully and truthfully all proper questions put to the bankrupt at their examination under oath.
  • The bankrupt, after or within one year immediately preceding the date of the initial bankruptcy event, obtained credit or property by false representations.

Court decision

The bankrupt was found guilty to three counts under the Criminal Code, and received a one-year conditional sentence.


2021

Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $359,364. The bankrupt attributed the cause of their bankruptcy to unemployment and over-indebtedness. In the 36 months preceding the bankruptcy, the bankrupt accumulated $363,386 in debt on thirty five credit cards and lines of credit. Within a three month period, the bankrupt had obtained over $89,000 in cash advances, made extravagant purchases of $68,322, and made two payments of $10,000 by NSF cheques. The bankrupt made false representations when obtaining credit.

Summary of offences of the bankrupt

  • The bankrupt made a fraudulent disposition of property before or after the date of the initial bankruptcy event.
  • The bankrupt made a false entry or knowingly made a material omission in a statement or accounting.
  • The bankrupt, after or within one year immediately preceding the date of the initial bankruptcy event, obtained credit or property by false representations.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of two counts under the Criminal Code, and was sentenced to a conditional jail term of 12 months to be served in the community.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities for $97,750. In the 12 months preceding the bankruptcy, the bankrupt accumulated $97,700 of debt on ten credit cards. The bankrupt obtained $61,200 in cash advances, made extravagant purchases of $34,300, and made misleading statements when obtaining credit. In addition, the bankrupt omitted to report income of $46,700 to the trustee, which was used for the benefit of third parties. The bankrupt claimed that their bankruptcy was due to a lack of employment.

Summary of offences of the bankrupt

  • The bankrupt refused or neglected to answer fully and truthfully all proper questions put to the bankrupt at their examination under oath.
  • The bankrupt obtained credit or property by false representations.
  • The bankrupt, after or within one year immediately preceding the date of the initial bankruptcy event, hypothecated, pawned, pledged or disposed of any property obtained on credit and not paid for.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means various credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of one count under the BIA , and was sentenced to a conditional jail term of 24 months to be served in the community, followed by a period of probation of 12 months with various conditions.


Criminal/penal case
Court No.: 500-73-004709-206
OSB No.: 41-1937062


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities for $330,044. In the 36 months preceding the bankruptcy, the bankrupt incurred $215,361 in debt on eleven credit cards and three lines of credit. The bankrupt obtained $133,783 in cash advances, made extravagant purchases of $69,337 and made thirty-five payments by NSF cheques totalling $141,640.  The bankrupt obtained  a mortgage in the amount of $200,495 and a car loan of $77,845 using misleading information and falsified documents.  The bankrupt made misleading statements when obtaining credit.  The bankrupt claimed that their bankruptcy was due to a loss of employment.

Summary of offences of the bankrupt

  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.
  • The bankrupt obtained credit by a false pretence or by fraud.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a conditional jail term of 18 months to be served in the community, followed by a period of probation of 24 months with various conditions. 


Criminal/penal case
Court No.: 500-73-004657-207
OSB No.: 41-2240392


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities for $274,780 of which $227,000 represents debt due to Revenu Quebec.  In the 24 months preceding the bankruptcy, the bankrupt incurred $35,523 in debt on three credit cards. The bankrupt made purchases of $38,931 and made six payments by NSF cheques totalling $16,400.  The bankrupt further failed to meet their taxpayer obligation.  The bankrupt claimed that their bankruptcy was due to an inability to cope with financial obligations.

Summary of offences of the bankrupt

  • The bankrupt, without reasonable cause, failed to comply with an order of the court made under section 68 or to do any of the things required of the bankrupt under section 158 of the Bankruptcy and Insolvency Act.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and received a suspended sentence, followed by a period of probation of 12 months with various conditions and a restitution of $5,000. 


Criminal/penal case
Court No.: 700-73-001491-184
OSB No.: 41-1779628


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $304,303. In the 36 months preceding the bankruptcy, the bankrupt incurred $420,857 in debt on twelve credit cards and one line of credit.  The bankrupt obtained $419,142 in cash advances, made extravagant purchases of $163,602, and made four payments of $2,556 by NSF cheques. The bankrupt obtained eight new credit cards within months of declaring bankruptcy in order to reimburse a preferential creditor. The bankrupt made false representations when obtaining credit. On the Statement of Affairs, the bankrupt claimed their reason for financial difficulty as “Endorsement for a company that has closed”.

Summary of offences of the bankrupt

  • The bankrupt refused or neglected to answer fully and truthfully all proper questions put to the bankrupt at their examination under oath.
  • The bankrupt made a false entry or knowingly made a material omission in a statement or accounting.
  • The bankrupt, after or within one year immediately preceding the date of the initial bankruptcy event, hypothecated, pawned, pledged or disposed of any property obtained on credit and not paid for.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to 12 months in jail followed by a probation of 12 months with various conditions. 


Criminal/penal case
Court No.: 500-73-004698-201
OSB No.: 41-2277339


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $115,195. In the 24 months preceding the bankruptcy, the bankrupt incurred $113,035 in debt on six credit cards. The bankrupt obtained $71,409 in cash advances, made purchases of $3,588, and made thirty-six payments of $129,054 by NSF cheques. The bankrupt made false representations when obtaining credit. The bankrupt attributed their bankruptcy to a lack of income and being a victim of fraud.

Summary of offences of the bankrupt

  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.
  • The bankrupt obtained credit by a false pretence or by fraud.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a conditional jail term of 18 months to be served in the community.


Criminal/penal case
Court No.: 200222821P1
OSB No.: 25-2093714


Background

On the date of the bankruptcy, the bankrupt reported unsecured liabilities of $76,044.77. In the 6 months preceding the bankruptcy, the bankrupt made several payments by NSF cheques, which resulted in the bankrupt being able to access credit of roughly $33,365 in excess of their credit card borrowing limits. The bankrupt attributed their financial difficulties to over extension of credit, assisting their family and pending foreclosure.

Summary of offences of the bankrupt

  • The bankrupt obtained credit by a false pretence or by fraud.

Court decision

The bankrupt pleaded guilty and was given a conditional sentence of 2 years less a day, with various conditions. 


Criminal/penal case
Court No.: 3521:67649-1
OSB No.: 11-2026192


Background

On the date of the bankruptcy, the bankrupt reported the total amount of their unsecured debt as $150,409. Within the 3-month period leading up to the date of the bankruptcy, the bankrupt had made significant cash withdrawals of up to $70,000 from credit cards and used the funds to gamble. The bankrupt had also made numerous extravagant purchases, including gift cards, electronics and jewellery, on credit in excess of $45,000 within the same timeframe. The bankrupt attributed their financial difficulties to several factors, including gambling.

Summary of offences of the bankrupt

  • The bankrupt defrauded financial institutions by deceit, falsehood or other fraudulent means by drawing on credit without intending to service the debts or being reckless as to the ability to do so.

Court decision

The bankrupt pleaded guilty to the offence of fraud over $5000.00 contrary to section 380(1)(a) of the Criminal Code.  The Court sentenced the bankrupt to a 9-month Conditional Sentence with various conditions, as well as an order to provide a genetic DNA sample.


2020

Background

An individual accumulated debt of approximately $48,000 less than a year before filing for bankruptcy. During this time, the bankrupt used forged documents, falsified income information, and altered personal financial data when applying for and obtaining additional credit. When the individual filed for bankruptcy, their debts were declared to be $219,257.68.

Summary of offences of the bankrupt

  • The bankrupt uttered forged documents.
  • The bankrupt obtained credit by false pretences.
  • The bankrupt obtained credit by false representations.

Court decision

The bankrupt pleaded guilty to three counts of obtaining credit by a false pretence, and one count of uttering a forged document under the Criminal Code. The individual received a 12-month conditional sentence, and 12 months probation. The sentence included freestanding restitution of $86,000. in favour of the estate for the benefit of the creditors.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $102,000. In the 12 months preceding the bankruptcy, the bankrupt incurred $102,000 in debt on twelve credit cards. The bankrupt obtained $55,800 in cash advances, made extravagant purchases of $41,700, and made four payments of $32,200 by NSF cheques. The bankrupt also incurred more than $100,000 in debt under two financing contracts for two luxury vehicles, one of which was apparently sold to another individual. The bankrupt made false representations when obtaining credit. The bankrupt attributed their bankruptcy to a lack of work, problems with gambling and sickness.

Summary of offences of the bankrupt

  • The bankrupt refused or neglected to answer fully and truthfully all proper questions put to the bankrupt at their examination under oath.
  • The bankrupt obtained credit and property by making false representations.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.
  • The bankrupt obtained credit by a false pretence or by fraud.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to 3 months in jail followed by a probation of 36 months with various conditions.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $215,620 on sixteen credit cards. Over the 24 months preceding the bankruptcy, the bankrupt transferred $160,000 to unidentified accounts, obtained $20,500 in cash advances and made extravagant purchases of $41,700. The bankrupt made misleading statements when obtaining credit. The bankrupt attributed the bankruptcy to the loss of their business.

Summary of offences of the bankrupt

  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means credit card companies of varying amounts of money.
  • The bankrupt obtained credit by a false pretence or by fraud.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to 8 months in jail, followed by probation of 12 months with various conditions.


2019

Background

An individual deposited counterfeit and NSF cheques to credit and deposit accounts. The individual then depleted the fabricated credit and funds on deposit by purchasing goods, bank drafts, and withdrawing cash before the cheques were returned. When the individual subsequently filed for bankruptcy, their unsecured liabilities were declared to be over $116,000.

Summary of offences of the bankrupt

  • The bankrupt fraudulently disposed of their property before or after the date of the initial bankruptcy event.
  • The bankrupt made a material omission in their statement of affairs.

Court decision

The bankrupt pleaded guilty to one count of knowingly making a material omission in a statement or accounting, and two counts of fraudulent disposition of property under the BIA . The individual was sentenced to 30 days in jail, a 12 month conditional sentence, and probation. The sentence included a freestanding restitution order of $92,093 in favour of the estate for the benefit of the creditors.


Background

The bankrupt made a proposal to their unsecured creditors in December 2013, and reported the estimated dollar value of their net realizable assets as $0 and the total amount of their unsecured liabilities as $676,455 in their sworn statement of affairs. The bankrupt attributed the need to file a proposal to their divorce and insufficient income due to slow business. They offered to pay their unsecured creditors a lump sum of $22,000 from a third party, in association with a debt of $203,703. The proposal was accepted by the bankrupt’s creditors and was approved by the court. The bankrupt made the proposed payment and the proposal was certified as having been fully performed in April 2014.

At the first meeting of creditors, the lone dissenting creditor requested that the trustee review the disposition of the bankrupt’s marital assets following their divorce. The bankrupt produced a letter from the bank revealing a joint account opened in April 2013 holding a balance of $108,463.43 that had been closed. The bankrupt was unable to provide the trustee with a proper accounting of the disposition of these funds.

Summary of offences of the bankrupt

  • The bankrupt neglected to answer fully and truthfully all proper questions put to them at their examination under oath.
  • The bankrupt made a false entry or knowingly made a material omission in a statement or accounting.
  • The bankrupt failed to comply with his duties under the BIA .

Court decision

The bankrupt pleaded guilty to two offences under the BIA , and received a conditional discharge and 12 months probation including an order to pay restitution to the trustee in the amount of $108,468.43 and 30 hours community service.


Background

In February 2012, the individual made an assignment into bankruptcy. Between January 2011 and February 2012, records show that, on multiple occasions, the bankrupt accessed a large amount of credit through purchases and cash advances on credit cards. Between December 2011, and February 2012, the bankrupt purchased $34,205 worth of merchandise from jewelry stores. Most of these purchases were made with credit cards. Between October and November 2011, the bankrupt cashed out large amounts of money at a casino, generating several large cash transaction reports in the process.

Summary of offences of the bankrupt

  • The bankrupt made a false entry or knowingly made a material omission in a statement or accounting.
  • The bankrupt committed fraud.

Court decision

The bankrupt was convicted on one count under the BIA and received a conditional discharge, a six months less a day term of imprisonment served in the community (house arrest), and was banned from entering any premises where gambling is permitted.


Background

In March 2013, the bankrupt made an assignment into bankruptcy. At the time, the bankrupt was involved in a divorce action. In 2011, as part of the divorce action, the bankrupt was ordered not to dispose of “any assets or matrimonial assets.” The order also froze all investments in a company the bankrupt owned.

Prior to the divorce, the bankrupt was the sole owner and operator of another company, whose primary asset was a profitable lease on a campground. The bankrupt and their partner lived and worked at the campground from 1995 until the marriage dissolved in August 2009.

In January 2013, the bankrupt assigned the campground lease, in exchange for $2 consideration, to a company solely owned and operated by a family member. Following the sale, the bankrupt was ostensibly an employee of the family member’s company and was being paid a salary of $1800 per month.

The reason offered for the sale was that the bankrupt, as manager, had steered the campground into dire financial straits and that the campground was in debt and the landlords were threatening to terminate the lease. However, only the campground lease as an asset was sold; none of the debts went along in the sale.

Summary of offences of the bankrupt

  • The bankrupt made a false entry or knowingly made a material omission in a statement or accounting.
  • The bankrupt committed fraud.

Court decision

The bankrupt pleaded guilty to one count of fraud under the Criminal Code, and was sentenced to 2 years less a day of house arrest, 150 hours community service and ordered to pay restitution in the amount of $76,746.64.


Background

A receivership order was rendered against a debtor company, a dealership selling new and used vehicles. Shortly before the bankruptcy, the director of the of the company disposed of 74 used automobiles. The sales were not noted in the debtor’s books and the director benefitted from the sale of the vehicles. In addition, the director sent forged financial statements to creditors.

Summary of offences of the bankrupt

  • The director of the bankrupt company fraudulently disposed of their property before or after the date of the initial bankruptcy event.
  • The director made a false entry or knowingly made a material omission in a statement or accounting.
  • The director, after or within one year immediately preceding the date of the initial bankruptcy event, concealed, destroyed, mutilated, falsified, made an omission in or disposed of, or is privy to the concealment, destruction, mutilation, falsification, omission from or disposition of, a book or document affecting or relating to the bankrupt’s property or affairs, unless the bankrupt had no intent to conceal the state of his affairs.
  • The director obtained, after or within one year immediately preceding the date of the initial bankruptcy event, credit or property by false representations made by themselves or made by any other person to their knowledge.
  • The director, after or within one year immediately preceding the date of the initial bankruptcy event, fraudulently concealed or removed any property of a value of fifty dollars or more or any debt due to or from the bankrupt.
  • The director defrauded, by deceit, falsehood or other fraudulent means, various credit card companies of varying amounts of money.
  • The director obtained credit by a false pretence or by fraud.
  • The director disposed of property with the intent to defraud.
  • The director committed forgery.

Court decision

The director was found guilty of one count under the Criminal Code, and was sentenced to a jail term of 18 months, followed by probation for 6 months with various conditions. A co-accused in this file was found guilty of one count under the Criminal Code. The co-accused was sentenced to a conditional jail term of 24 months to be served in the community, followed by probation for 12 months with various conditions.


Background

On the date of the bankruptcies, the bankrupts reported unsecured liabilities of $188,920 and $68,000 respectively. Over a period of three months, the first bankrupt incurred $187,000 in debt, of which $113,695 was for the purchase of luxury automobiles and $70,400 in cash advances. The first bankrupt made twenty-six payments totalling $126,030 with NSF cheques, by which the purchases were made and the cash advances were obtained. Over a period of two months, the second bankrupt incurred $45,332 of debt, of which $28,400 was for the purchase of automobiles, $5,300 for electronic products, $4,700 for plane tickets and $8,980 in cash advances. The second bankrupt made fifteen payments totalling $61,350 with NSF cheques for the purchases. The bankrupts made misleading statements when obtaining credit and attributed their bankruptcies to accumulated interest and insufficient income.

Summary of offences of the bankrupts

  • The bankrupts made a fraudulent disposition of their property before or after the date of the initial bankruptcy event.
  • The bankrupts made a false entry or knowingly made a material omission in a statement or accounting.
  • The bankrupts defrauded, by deceit, falsehood or other fraudulent means, various credit card companies of varying amounts of money.
  • The bankrupts obtained credit by a false pretence or by fraud.

Court decision

The Crown withdrew the charge against the first bankrupt because the second bankrupt pleaded guilty to fraud, and was found guilty of one count under the Criminal Code. This bankrupt was sentenced to a jail term of 12 months, followed by a probation of 12 months with various conditions.


2018

Background

A bankrupt neglected to answer questions truthfully during an OSB examination about employment and income, failed to identify all employment and income, and generally failed in their duties as a bankrupt. When the individual filed for bankruptcy, their unsecured liabilities were declared to be over $274,000.

Summary of offences of the bankrupt

  • The bankrupt neglected to answer fully and truthfully all proper questions put to them at their examination under oath.
  • The bankrupt fashioned a material omission in their statement of affairs.
  • The bankrupt failed to comply with their duties under the BIA.

Court decision

The bankrupt pleaded guilty to one count of each of the following BIA offences; refuse or neglect to answer fully and truthfully all proper questions during an OSB examination, knowingly made a material omission in statement or accounting, and fail in duties as a bankrupt. The individual received a 18-month conditional sentence.


Background

In February 2011, the bankrupt and members of their immediate family were named as defendants in a civil court case whereby the plaintiff alleged they had been defrauded of over $4 million by a family member and their extended family. The plaintiff’s civil action was ultimately successful, resulting in the bankrupt having to return a vehicle valued at $26,383 to the plaintiff. When the bankrupt did not return the vehicle, the plaintiff obtained a garnishment order for the value of the vehicle. Upon notice of the garnishment order, the bankrupt filed for bankruptcy.

At the time of bankruptcy, the bankrupt was employed as a payroll/budget clerk with a salary of approximately $52,000 per year. In order to avoid making surplus income payments to the estate, the bankrupt accessed their employer’s payroll database and changed their earnings records to reflect a much lower annual income and generated a fraudulent T4 for their 2013 tax return. The lack of surplus income payments also allowed the bankrupt to obtain an automatic discharge from their bankruptcy in 9 months, rather than 21 months.

In January 2015, bankrupt’s supervisor discovered the fraud, and an internal investigation revealed the bankrupt had altered both their 2013 and 2014 earnings. The investigation also revealed that, during the same period, the bankrupt accessed the Service Canada website using a co-worker’s user name and password and issued themselves two fraudulent Service Canada ROEs, which resulted in the bankrupt fraudulently collecting $26,000 in Employment Insurance Benefits.

Summary of offences of the bankrupt

  • The bankrupt fraudulently disposed of property.
  • The bankrupt uttered forged documents.

Court decision

The bankrupt pleaded guilty to three counts of fraud over $5000 under the Criminal Code and one count of forgery under the Criminal Code, and was sentenced to six months in jail, followed by three years of probation. The sentence also included a restitution order of $37,124.


Background

The bankrupt voluntarily assigned themselves into bankruptcy in February 2014. At the time of the bankruptcy, the individual reported assets of no realizable value and unsecured liabilities of $298,889.38. Land title records found the bankrupt to be registered on the title of five properties, three of which were disposed of within the year prior to their assignment, one of which was disposed after their assignment, and one of which they retained.

A review of the bankrupt’s financial records revealed they exhausted their credit between mid-November 2012 and the end of January 2013. Characteristic of a kiting fraud, transactions involving cash advances, jewelry store purchases, bank drafts and foreign transfers were conducted while credits to their accounts were being returned by the financial institutions upon which the payment instruments were drawn.

Summary of offences of the bankrupt

  • The bankrupt made a false entry or knowingly made a material omission in a statement or accounting.
  • The bankrupt obtained credit by a false pretence or by fraud.

Court decision

The bankrupt pleaded guilty to two counts under the BIA , and received a conditional discharge, 12 months probation including an order to pay restitution to the trustee in the amount of $108,468.43, and 30 hours of community service.


Background

In July 2013, the bankrupt voluntarily assigned themselves into bankruptcy. Due to the extent of credit card debt, the OSB completed a more detailed review of the bankrupt’s accounts for the 14 months prior to the bankruptcy.

This review revealed that, prior to their bankruptcy, the bankrupt had a pattern of depositing cheques from closed or overdrawn bank accounts into their credit accounts, and then using the credit for cash advances. The bankrupt also made furniture and electronics purchases during the same period.

At the time of their assignment in bankruptcy, the bankrupt did not disclose that one of the reasons for their insolvency was due to their extensive gambling activities. The bankrupt also failed to disclose the disposition of property purchased on credit, which they failed to pay for within the year prior to their assignment into bankruptcy.

Summary of offences of the bankrupt

  • The bankrupt made a false entry or knowingly made a material omission in a statement or accounting.
  • The bankrupt failed to comply with their duties under the BIA .
  • The bankrupt obtained credit by a false pretence or by fraud.

Court decision

The bankrupt was found guilty of one count under the BIA , and was sentenced to two years less a day of house arrest, followed by one year probation, including 240 hours community service and banishment from entering any casino, bingo hall, or any other place where gambling is permitted.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $99,980. Over the 12 months preceding the bankruptcy, the bankrupt incurred $71,206 in debt on 13 credit cards. The bankrupt obtained five credit cards within a period of three months. Two NSF payments were used to make the purchases. The bankrupt made misleading statements when obtaining credit and attributed their bankruptcy to health problems and separation.

Summary of offences of the bankrupt

  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means, various credit card companies of varying amounts of money.
  • The bankrupt obtained credit by a false pretence or by fraud.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a jail term of 24 months, followed by probation of 24 months with various conditions.


Background

An individual, through their company, purchased $276,000 of video games without paying their suppliers. The individual made three payments of $58,300 with NSF cheques for part of the purchases. The bankrupt attributed their bankruptcy to gambling and pressure from their creditors.

Summary of offences of the bankrupt

  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means, various credit card companies of varying amounts of money.
  • The bankrupt willfully attempted in any manner to obstruct, pervert or defeat the course of justice.

Court decision

The bankrupt was found guilty of two counts under the Criminal Code, and was sentenced to a conditional jail term of 24 months, followed by a probation of 12 months with various conditions.


2017

Background

An individual provided forged documents, and false information, including altered personal financial data, when applying for credit cards. The individual also issued NSF cheques to deceitfully pay down accounts including credit cards. The newly fabricated available credit was used to purchase goods and obtain cash advances, further defrauding creditors. The individual then fraudulently disposed of property in the form of goods and cash advances. Additionally, the bankrupt neglected to answer questions truthfully during an OSB examination. When the individual filed for bankruptcy, their debts were declared to be $271,753.

Summary of offences of the bankrupt

  • The bankrupt uttered forged documents.
  • The bankrupt obtained credit by false pretences, by deceit, falsehood or other fraudulent means defrauded creditors.
  • The bankrupt fraudulently disposed of their property before or after the date of the initial bankruptcy event.
  • The bankrupt neglected to answer fully and truthfully all proper questions put to them at their examination under oath.

Court decision

The bankrupt pleaded guilty to two counts of obtaining credit by a false pretence, one count of uttering a forged document, and one count of fraud over $5,000 under the Criminal Code. Furthermore, the bankrupt pleaded guilty to one count of fraudulent disposition of property, and refuse or neglect to answer fully and truthfully all proper questions during an OSB examination under the BIA . The individual was sentenced to 90 days in jail, followed by an 18-month conditional sentence. The sentence also included a freestanding restitution order of $271,753 in favour of the estate for the benefit of the creditors.


Background

On the date of their bankruptcy, the bankrupt reported $217,900 in unsecured liabilities. Over a period of 12 months preceding the bankruptcy, the total balance on their credit cards increased from $111,125 to $236,900, an increase of $125,775. This increase was in relation to extravagant purchases totalling $37,900 and $112,500 in cash advances. The bankrupt made nine payments totalling $259,000 with NSF cheques for the purchases and the cash advances. The bankrupt made misleading statements when obtaining credit and attributed their bankruptcy to health problems and a reduction in income.

Summary of offences of the bankrupt

  • The bankrupt refused or neglected to answer fully and truthfully all proper questions put to them at their examination under oath.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means, various credit card companies of varying amounts of money.
  • The bankrupt obtained credit by false pretence or by fraud.

Court decision

The bankrupt was found guilty of five counts under the Criminal Code, and was sentenced to a conditional jail term of 24 months, followed by probation of 36 months with various conditions.


Background

On the date of their bankruptcy, the debtor reported unsecured liabilities of $147,500. Over the 24 months preceding the bankruptcy, the total balance on their credit cards increased from $3,300 to $150,700, an increase of $147,400. This increase was related to purchases and cash advances. The bankrupt also shipped and sold two automobiles in Europe, and the proceeds of the sales were used for travel purposes. The bankrupt attributed their bankruptcy to gambling problems and to a lack of income.

Summary of offences of the bankrupt

  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means, various credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a conditional jail term of 24 months, followed by a probation of 24 months with various conditions.


2016

Background

An individual fraudulently disposed of real property outside Canada. During an OSB examination, the bankrupt neglected to answer questions truthfully, failed to identify all their property, concealed records relating to property ownership, and failed in their duties as a bankrupt. When the individual filed for bankruptcy, their debts were declared to be $216,918.

Summary of offences of the bankrupt

  • The bankrupt concealed records relating to a property.
  • The bankrupt failed to identify the property in their statement of affairs.
  • The bankrupt fraudulently disposed of their property before or after the date of the initial bankruptcy event.
  • The bankrupt refused or neglected to answer fully and truthfully all proper questions put to them at their examination under oath.
  • The bankrupt failed to comply with their duties under the BIA .

Court decision

The bankrupt pleaded guilty to one count of each of the following BIA offences; conceal records relating to a property, knowingly made a material omission, fraudulent disposition of property, refuse or neglect to answer fully and truthfully all proper questions during an OSB examination, and fail in duties as a bankrupt. The individual received a 15-month conditional sentence which included a requirement to pay restitution totalling $75,000 in favour of the estate for the benefit of the creditors. Additionally, there was a freestanding restitution order of $141,918 in favour of the estate for the benefit of the creditors.


Background

The bankrupt voluntarily assigned themselves into bankruptcy, in June 2011. They attributed their financial difficulty to business failure and bad investments. At the time of the filing for bankruptcy, the bankrupt listed $363,705 in unsecured liabilities. Two of the creditors accused the bankrupt of obtaining loans fraudulently.

The bankrupt had not listed four additional creditors when completing their Statement of Affairs. Moreover, the bankrupt reported selling a property in which they claimed 50% ownership, when in fact, the company of which they were the director with 100% voting shares was registered on title. The bankrupt also reported selling a vehicle for $30,000 three months prior to filing for bankruptcy and using proceeds to pay bills and living expenses, when in fact, bank account analysis showed they purchased a bank draft for $15,000 in the name of a family member.

Summary of offences of the bankrupt

  • The bankrupt fraudulently disposed of their property before or after the date of the initial bankruptcy event.
  • The bankrupt made a false entry or knowingly made a material omission in a statement or accounting.

Court decision

The bankrupt was found guilty of two counts of fraud over $5000 and BIA offences, and was sentenced to 14 months of house arrest, followed by two years of probation with strict conditions, 120 hours community service and payment of full restitution to three victims for a total of $159,815.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $294,079. Over the 24 months which preceded the bankruptcy, the balance on their credit cards went from $20 to $254,700, an increase of $254,700. This increase was due to $42,213 in extravagant purchases and $185,687 in cash advances. Over the 18 months preceding the bankruptcy, the bankrupt did not make any payment on their 21 credit cards and 3 credit lines of credit. The bankrupt attributed their bankruptcy to poor financial management.

Summary of offences of the bankrupt

  • The bankrupt, by deceit, falsehood or other fraudulent means, defrauded various credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of sixteen counts under the Criminal Code, and was sentenced to a jail term of 21 months, followed by probation for 24 months with various conditions.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $234,180. Over the 14 months preceding the bankruptcy, the total balance on their credit cards increased from $892 to $229,445, an increase of $228,553. This increase was related, among other things, to $37,668 in extravagant purchases and $164,578 in cash advances. The bankrupt made misleading statements when obtaining credit and attributed their bankruptcy to the failure of their company and to a lack of employment.

Summary of offences of the bankrupt

  • The bankrupt refused or neglected to answer fully and truthfully all proper questions put to them at their examination under oath.
  • The bankrupt, after or within one year immediately preceding the date of the initial bankruptcy event, hypothecated, pawned, pledged or disposed of property obtained on credit and not paid for, unless in the case of a trader the hypothecation, pawning, pledging or disposing is in the ordinary way of trade and unless the bankrupt had no intent to defraud.
  • The bankrupt failed to comply, without reasonable cause, with an order of the court made under section 68 or to do any of the things required of the bankrupt under section 158.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means, various credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a jail term of 18 months, followed by a probation of 24 months with various conditions.


2015

Background

An individual issued cheques from lines of credit knowing there was insufficient credit on the account to cover the cheques; obtained credit by false representations; and fraudulently disposed of property in the form of cash advances drawn on credit within the year prior to the bankruptcy. When the individual filed for bankruptcy, unsecured liabilities totalled over $149,000.

Summary of offences of the bankrupt

  • The bankrupt made a false statement in writing.
  • The bankrupt fraudulently disposed of their property before or after the date of the initial bankruptcy event.
  • The bankrupt obtained credit by false representations.

Court decision

The bankrupt pleaded guilty to one count of fraud under the Criminal Code and three counts under the BIA . The individual received an 18-month conditional sentence. The sentence included a freestanding restitution order of $144,064 in favour of the estate for the benefit of the creditors. There was also a $5,000 payment to the trustee in favour of the estate for the benefit of the creditors.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $88,089. Over the 12 months preceding the bankruptcy, the total balance on their credit cards increased from $129 to $127,934, an increase of $127,805. This increase was related, among other things, to $100,750 in cash advances made at the casino and $21,000 for the purchase of jewellery. The bankrupt made eight payments for $103,200 with NSF cheques for the purchases and cash advances. The bankrupt attributed their bankruptcy to gambling and health problems.

Summary of offences of the bankrupt

  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means, various credit card companies of varying amounts of money.
  • The bankrupt obtained credit by a false pretence or by fraud.

Court decision

The bankrupt was found guilty of six counts under the Criminal Code, and was sentenced to a jail term of 18 months followed by a probation of 24 months with various conditions.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $192,897. Over the 14 months preceding the bankruptcy, the total balance on their credit cards increased from $16,770 to $138,980, an increase of $122,210. This increase was related, among other things, to $110,930 in cash advances. The bankrupt made misleading statements to obtain credit. The bankrupt attributed their bankruptcy to the failure of their company.

Summary of offences of the bankrupt

  • The bankrupt refused or neglected to answer fully and truthfully all proper questions put to them at their examination under oath.
  • The bankrupt obtained, after or within one year immediately preceding the date of the initial bankruptcy event, credit or property by false representations made by themselves or made by any other person to their knowledge.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means, various credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of eleven counts under the Criminal Code, and was sentenced to a conditional jail term of 24 months, followed by probation for 24 months with various conditions.


2014

Background

An individual provided false information and misrepresented their personal financial information when applying for credit cards and financing for a vehicle. Furthermore, the individual fraudulently disposed of the financed vehicle and other properties including cash advances that were obtained on credit within the year prior to the bankruptcy. When the individual filed for bankruptcy, unsecured liabilities totalled over $544,000.

Summary of offences of the bankrupt

  • The bankrupt obtained credit by false pretences.
  • The bankrupt fraudulently disposed of their property before or after the date of the initial bankruptcy event.

Court decision

The bankrupt pleaded guilty to two counts of fraud under the Criminal Code and two counts under the BIA . The individual received a 12-month conditional sentence. The sentence included a freestanding restitution order of $106,858 in favour of the estate for the benefit of the creditors. There was also a $10,000 payment to the trustee for the benefit of the creditors.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $104,791. Over the period of 12 months preceding the bankruptcy, the total balance on their credit cards increased from $2,650 to $109,920, an increase of $107,270. This increase was related, among other things, to $90,000 in cash advances and $19,000 in extravagant purchases. The bankrupt made misleading statements when obtaining credit. The bankrupt attributed their bankruptcy to a loss of employment, their return to studies and to financial assistance of $35,000 for a family member.

Summary of offences of the bankrupt

  • The bankrupt refused or neglected to answer fully and truthfully all proper questions put to them at their examination under oath.
  • The bankrupt obtained, after or within one year immediately preceding the date of the initial bankruptcy event, credit or property by false representations.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means, various credit card companies of varying amounts of money.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a jail term of 12 months, followed by probation of 24 months with various conditions.


Background

On the date of their bankruptcy, the bankrupt reported unsecured liabilities of $207,650. Over the 12 months preceding the bankruptcy, the total balance on their credit cards increased from $60 to $216,920, an increase of $216,860. This increase was related, among other things, to $173,070 in cash advances and $70,330 in extravagant purchases. The bankrupt made 11 payments totalling $94,500 with NSF cheques for the purchases and the cash advances. The bankrupt made misleading statements when obtaining credit and attributed their bankruptcy to gambling and alcohol issues.

Summary of offences of the bankrupt

  • The bankrupt obtained, after or within one year immediately preceding the date of the initial bankruptcy event, credit or property by false representations.
  • The bankrupt defrauded, by deceit, falsehood or other fraudulent means, various credit card companies of varying amounts of money.
  • The bankrupt obtained credit by a false pretence or by fraud.

Court decision

The bankrupt was found guilty of one count under the Criminal Code, and was sentenced to a jail term of 15 months, followed by a probation of 24 months with various conditions.


2013

Criminal/penal case
Court No. : 540-73-000367-104
OSB No. : 41-927326

Background

An individual used credit cards, lines of credit and other sources of financing to obtain cash advances and to buy jewellery, home electronics and a car. He resold the home electronics and car before they had been paid for and without informing the institution that financed the purchases. When he filed for bankruptcy, he had debts totalling $293,000, with most of the debt accumulated in the year before filing for bankruptcy.

Summary of offences of the bankrupt

  • The bankrupt committed fraud.

Court decision

The bankrupt pleaded guilty to 11 counts of fraud under the Criminal Code and was sentenced to 20 months of imprisonment followed by two years of probation.

2012-2009
 

2012 | 2011 | 2010 | 2009

2012

Background

Two years after his wife filed for bankruptcy with debts of more than $162,000, the husband filed for bankruptcy with debts totalling $492,000. A comparison of the wife's statement of affairs with her husband's at the time of filing the bankruptcies revealed important discrepancies, including how common assets were disposed of.

Summary of offences of the bankrupt

  • The bankrupt did not fully and truthfully answer questions when examined under oath.
  • The bankrupt committed fraud.

Court decision

The bankrupt pleaded guilty to one offence under the Criminal Code and one offence under the BIA . He received a 12-month conditional sentence, including six months of house arrest and six months under curfew. While serving his sentence, he must perform 180 hours of community service and not apply for or use any credit cards or lines of credit. The Court also ordered the bankrupt to pay $169,100 in restitution to his trustee.


Background

An individual had been unemployed for a period of time, but somehow obtained financing to purchase a property, which he later abandoned. The property was then sold by the mortgagor who took a loss on the sale. When the individual filed for bankruptcy, his statement of affairs listed unsecured liabilities of more than $213,000. When he was examined under oath by the OSB, the bankrupt could not explain how he was able to obtain the financing while being unemployed nor the circumstances surrounding the property purchase. Also, the bankrupt could not answer questions about the financing nor the assets of three short-term businesses he had started.

Summary of offences of the bankrupt

  • The bankrupt disposed of property fraudulently.
  • The bankrupt did not fully and truthfully answer questions when examined under oath.
  • The bankrupt failed to comply with his duties under the BIA .

Court decision

The bankrupt pleaded guilty to three offences under the BIA and received an 8-month conditional sentence. He must also pay restitution orders of $78,000 to the Canada Mortgage and Housing Corporation and $100,000 to his trustee.


Background

When an individual filed for bankruptcy, he had been unemployed and living on social assistance for two years, and had debts of more than $171,000. When the trustee was collecting the bankrupt's financial information, it was revealed that the bankrupt had lied on at least three of his credit applications. He owed those three creditors close to $60,000. Furthermore, the trustee found financial documents indicating that the bankrupt had deposited some cheques knowing that they would not be honoured and then withdrew funds against the deposits before the bank was able to verify the cheques. This "kiting" scheme defrauded creditors of more than $55,000.

Summary of offences of the bankrupt

  • The bankrupt did not fully and truthfully answer questions when examined under oath.
  • In the 12 months before the date of bankruptcy, the bankrupt obtained credit or property by making false representations.

Court decision

The bankrupt pleaded guilty to two offences under the BIA and received a 12-month conditional sentence for each charge, to be served concurrently. The bankrupt must also pay a restitution order of $100,000 to his trustee.

Background

During the 12 months before he filed for bankruptcy, an individual on welfare accumulated $95,000 in debts on his 24 credit cards. He also wrote cheques totalling $99,000 to cover payments for several credit cards, but the cheques were returned for insufficient funds. At the time of filing for bankruptcy, he owed more than $140,000. Further, it was only when he was questioned under oath by the OSB that the bankrupt revealed that he had spent $70,000 at a casino, information he should have disclosed to the trustee in his statement of affairs at the time of filing the bankruptcy.

Summary of offences of the bankrupt

  • The bankrupt committed fraud.

Court decision

The bankrupt pleaded guilty to one count of fraud under the Criminal Code and received a 16-month conditional sentence. He is to serve his sentence in the community, followed by 12 months of probation under the conditions of keeping the peace, meeting with his probation officer and attending a gambling counselling program.


Criminal/penal case
Court No. : 540-73-000373-102
OSB No. : 41-962226

Background

An individual used 18 credit cards to accumulate $84,000 in debts in just 12 months, bringing his total credit card debt to $156,000. During the same period, he attempted to pay the credit card companies by writing bad cheques totalling $30,000. He also took advantage of store financing to obtain $7,800 in home electronics. At the end of the 12-month period, he filed for bankruptcy.

Summary of offences of the bankrupt

  • The bankrupt committed fraud.

Court decision

The bankrupt pleaded guilty to 10 counts of fraud under the Criminal Code and received an 18-month conditional sentence. He is to serve the first 12 months under house arrest and the last six months under curfew. This is to be followed by 24 months of probation. He must also complete 150 hours of community service within a 15-month period.


Criminal/penal case
Court No. : 500-73-003753-122
OSB No. : 41-1099686

Background

Over the course of 12 months, a man accumulated $187,000 in debts on his credit cards, including spending more than $22,000 on furniture and electronics. During that period, he also gave his son-in-law $30,000. At the end of his year-long spending spree, he filed for bankruptcy.

Summary of offences of the bankrupt

  • The bankrupt committed fraud.

Court decision

The bankrupt pleaded guilty to one count of fraud under the Criminal Code and received a 14-month conditional sentence. He is to serve the first seven months under house arrest and the remaining seven months under curfew. This is to be followed by 12 months of probation.


Background

A self-employed taxi driver earned between $1,200 and $1,700 a month, and his wife received $1,100 a month in child tax benefits. The man obtained $30,000 in cash advances against credit cards to pay medical expenses for family overseas. Within a year of obtaining those cash advances, he said that he obtained more cash advances and began lending money to a friend—eventually giving the friend a total of $120,000. For nine months, while waiting for his friend to repay him, the man stopped paying the minimum balance on his credit cards. Also, during that time, he went to a casino with his friend and spent approximately $4,000. Then, the taxi driver declared bankruptcy. During his examination under oath before the OSB , the bankrupt could not recall contact information for his friend. Furthermore, he said that he hadn't seen that friend for several months. An examination of his financial records showed that the bankrupt had obtained $147,000 in cash advances after his friend had supposedly disappeared.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.
  • Bankrupt disposed of property obtained on credit and not paid for.

Court decision

The bankrupt pleaded guilty to one count of disposal of property obtained on credit and two counts of fraud over $5,000 under the Criminal Code. He received an 18-month conditional sentence and was ordered to make restitution of $117,000.


Background

A limousine driver said that to start his own business he obtained $250,000 on credit, which he spent to buy equipment. He claimed that he neither received the equipment nor recovered his money. In addition, he had no record of the equipment-purchase transaction. The man also used credit to pay for trips and to purchase about $40,000 worth of furniture and other goods that he gave to family and friends. When he filed for bankruptcy, he declared debts totalling $410,000 and said that he was a first-time bankrupt. He admitted that a third party helped him to obtain credit. An investigation found that the man actually had debts of almost $750,000 and that he had been bankrupt before. The man could not explain what happened to the extra $340,000.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.
  • Bankrupt refused or neglected to answer fully and truthfully all proper questions at an examination held pursuant to the BIA .
  • Bankrupt disposed of property obtained on credit and not paid for.

Court decision

The bankrupt pleaded guilty to one count of fraud under the Criminal Code and two offences under the BIA . For the one count under the Criminal Code, the bankrupt received an 18-month conditional sentence: six months of house arrest and 12 months of curfew. He must also pay $150,000 to the trustee and not possess or apply for any credit cards or lines of credit during those 18 months. For the two offences under the BIA , the bankrupt received a nine-month conditional sentence, which he will serve at the same time as his Criminal Code sentence.


Background

The debts of a self employed man increased from $6,700 to $225,000 in the year leading up to his bankruptcy. He went from having two credit cards and two lines of credit to a total of 16 credit cards and lines of credit. Even though he knew he was in financial difficulty, he kept using credit to make mortgage payments and to make minimum payments on the credit cards. The man said that during the months leading up to his bankruptcy, he borrowed $86,000 to invest in the restaurant where he worked. The business closed and the owners disappeared. Furthermore, the man had no record of the money he had invested in the restaurant.

Summary of offences of the bankrupt

  • Bankrupt failed to perform the duties imposed under the BIA .

Court decision

The bankrupt pleaded guilty to one offence under the BIA and was ordered to pay $70,000 to the trustee in restitution. He received a suspended sentence with one year of probation, during which time he is not to possess or apply for any credit cards or lines of credit. He was also required to report to a probation officer.


Background

At the time he lost his job, a marble polisher had debts totalling $48,000. He began to use credit to supplement his Employment Insurance benefits. He then said that a friend proposed a business venture. To finance it, the friend helped the man obtain credit from several sources. The friend then disappeared after receiving more than $100,000 from the marble polisher, who had no record of the business venture. The marble polisher then began to use credit from one source to make minimum payments to another. Even though he knew he was insolvent, he spent more than $300,000 on travel and on gifts and cash donations to family members. A year after losing his job, he filed for bankruptcy with accumulated debts of $359,000.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.
  • Bankrupt refused or neglected to answer fully and truthfully all proper questions at any examination held pursuant to the BIA .
  • Bankrupt knowingly made a false statement to obtain credit.

Court decision

The bankrupt pleaded guilty to three offences under the BIA and two counts of fraud under the Criminal Code. He received an 18-month conditional sentence: nine months of house arrest and nine months of curfew. He must also perform 200 hours of community service and not possess or apply for any credit cards for 18 months. In addition, he must make restitution of $111,000 to the trustee.


Background

A husband sold the family home to his wife. The wife immediately remortgaged that home. After four months, she stopped making mortgage payments on it. Soon after that, the family moved to a new home that they bought in their daughter's name. The daughter made a $228,000 down payment on the home using money her father gave her. When the wife filed for bankruptcy, she reported her previous house as an asset. In addition to the mortgage debt on that previous house, she owed $169,000 in other debts. The husband filed for bankruptcy 10 months after the wife, declaring debts of $270,000. The husband said that he had given the house to his wife as part of their separation agreement, along with $100,000. Then the husband changed his account of the events and said that he had sold the house to someone else and given $100,000 of the proceeds to his wife as part of a separation agreement. An investigation concluded that the down payment on the second home likely came from the wife's purchase and remortgaging of the first home in an attempt to shield that money from bankruptcy proceedings. The investigation also found that both spouses accumulated most of their debt in the seven months before they filed for bankruptcy. Each had obtained more than $130,000 in cash advances, as well as bought goods on credit.

Summary of offences of the bankrupts

  • Bankrupts used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.
  • Bankrupts refused or neglected to answer fully and truthfully all proper questions at an examination held pursuant to the BIA .
  • Bankrupts disposed of property obtained on credit and not paid for.

Court decision

The husband pleaded guilty to five offences under the BIA . He received a 15-month conditional sentence that included six months of house arrest. He must also make two separate restitution orders to the trustee: one for $30,000 and another for $127,000. The wife pleaded guilty to five offences under the BIA . She received a suspended sentence with 12 months of probation, 120 hours of community service and a ban on obtaining credit for 12 months. She must also pay $10,000 in restitution to the trustee.


Background

A man earning about $2,000 a month was spending about $5,000 each time he went to a casino, which he did regularly. During his examination under oath with the Office of the Superintendent of Bankruptcy, he admitted that he obtained money to gamble by applying for credit in his sister's name, sometimes without telling her, and lying about her income. Another way he obtained cash was by forging his sister's signature on cheques and depositing them into her bank account. He would then withdraw funds against the deposits before the cheques bounced. When he filed for bankruptcy, he had debts totalling $174,000.

Summary of offences of the bankrupt

  • Bankrupt, by deceit, falsehood or other fraudulent means, defrauded the public or any person, whether ascertained or not, of any property, money or valuable security or any service.
  • Bankrupt did not fully and truthfully answer questions at an examination held pursuant to the Act.

Court decision

The bankrupt pleaded guilty to the above-mentioned offences. He received a 12-month conditional sentence for each offence, to be served concurrently. Restitution Orders totalling $77,000, payable by the bankrupt to the trustee for the benefit of the estate, were also issued.

Criminal/penal case
Court No. : 500-73-003584-113
OSB No.: 41-1195802

Background

A man was employed by a bakery and earned less than $15,000 a year. When he already had debts of nearly $40,000, he incurred additional debts of $115,000 in one year. He obtained $250,000 in cash advances and various merchandise. He made debt payments in the amount of $260,000, of which $105,000 was refused. On one application for a credit-card, he declared annual income of $42,000. At the time of his bankruptcy, he had 18 credit card, two bank accounts and a line of credit; his debts totalled $156,000. He attributed his financial difficulties to his low income and overindebtedness.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt pleaded guilty to 20 counts of fraud. He was sentenced to two years less a day, to be served in the community, with the following conditions:

  • remain at home 24 hours a day for the first six months, and between 11:00 p.m. and 6:00 a.m. for the next 18 months less a day;
  • perform 200 hours of community service within 12 months;
  • not possess any credit cards.

In addition, three years of probation and prohibition against possessing any credit cards will begin at the end of the sentence.

Criminal/penal case
Court No. : 09-20023
OSB No.: 41-299316

Background

A man accumulated debts of more than $450,000 in nine months. He far exceeded his credit limits by obtaining cash advances and making payments using not sufficient funds (NSF) cheques. He obtained a loan for a motorcycle and a tent trailer; and purchased electronics, as well as clothing, furniture and jewellery, using credit he never repaid. Moreover, he spent $10,000 in Atlantic City and purchased airline tickets to a foreign country. At the time of his bankruptcy, he had 29 credit cards. He attributed his bankruptcy to the loss of his job and to gambling problems.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt pleaded guilty to 23 counts of fraud. The Court suspended his discharge and ordered him to repay $151,000 to the financial institutions. The bankrupt will also be on probation for two years.


Criminal/penal case
Court No. : 500-73-003491103
OSB No.: 41-1150260

Background

Having already accumulated debts of $2,000, a man incurred additional debts prior to losing his job. He continued to take on debts, knowing that he could not pay his creditors. He applied to increase his credit limits, which he very quickly reached. Ten months later, he had about 30 credit cards or lines of credit, and debts exceeding $196,000. He declared bankruptcy, attributing his financial problems to the fact that he was unemployed.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt pleaded guilty to one count of fraud covering all of his offences. He was sentenced to 18 months, to be served in the community, with a number of conditions.


2011

Background

An unemployed man obtained a total of $132,000, using credit cards and lines of credit, to supplement his family income while sending another $104,000 to support relatives overseas. He also gave money to his wife to go to the casino. He would make minimum payments to his creditors so that he could keep borrowing money. He filed for bankruptcy with debts of $244,000.

Summary of offences of the bankrupt

  • Bankrupt disposed of property obtained on credit and not paid for.

Court decision

The bankrupt pleaded guilty to 16 counts of fraud. He was sentenced to a fine of $1,350 for each count, for a total of $21,600, with 12 months to pay.


Background

A bankrupt had not provided her trustee with a statement of income and expenses, nor proof of her income, as required by the BIA . She had also written a cheque to the trustee that her account could not cover. Stating that she was in financial hardship, the bankrupt asked permission to cash a Registered Retirement Savings Plan (RRSP) that was exempt from seizure during her bankruptcy. The institution holding the RRSP asked for proof that she had been discharged from her bankruptcy or permission from her trustee. She had not been discharged from her bankruptcy nor did she have permission from her trustee, so she gave the institution a falsified letter of discharge, forging the signature of her trustee. The falsified letter included the bankrupt's phone number as the contact number and she identified herself as a trustee when she received a call from the institution holding the RRSP . The institution contacted the trustee office, which confirmed that the bankrupt had not been discharged.

Summary of offences of the bankrupt

  • Bankrupt used a forged document.

Court decision

The Court ordered a suspended sentence with one year of probation and 25 hours of community service. The bankrupt did not appear for her bankruptcy discharge hearing and remains undischarged.

Background

A first-time bankrupt had total debts of $631,000. He gambled at casinos regularly, but when he lost his job he could no longer make minimum payments on his credit cards. He admitted to selling goods that he bought on credit but did not pay for, and using the money to gamble. The goods included appliances, electronics, jewellery and alcohol.

Summary of offences of the bankrupt

  • Bankrupt sold an item bought on credit but not paid for.

Court decision

The Court ordered a suspended sentence with 18 months of probation. The bankrupt is to serve the first six months of probation under house arrest, followed by a curfew for the next six months. During the last 12 months of probation, he is to complete 150 hours of community service. While on probation, the bankrupt is not allowed to have or apply for credit cards or lines of credit, and is required to attend counselling sessions for his gambling addiction. He is also required to pay $66,000 to the bankruptcy estate.


Background

A first-time bankrupt had assets of $6,300 and debts totalling $403,600. He earned $2,350 a month. During his examination under oath with the Office of the Superintendent of Bankruptcy, he stated that over two to three months he withdrew over $200,000 through cash advances. He stated that he obtained this amount of credit through a friend, who would accompany him to banks and help him with his language barrier. The bankrupt claimed that he gave the money to the friend as an investment in an import/export business, but had nothing in writing to prove it. The bankrupt further claimed that when he returned from his honeymoon he discovered that his business partner had taken from him $30,000 worth of furniture bought on credit, but the bankrupt did not file a police report. The bankrupt stated that this friend has left the country. As part of his total debts, the bankrupt also owed $80,000 for wedding and honeymoon expenses and $63,000 for leasing two luxury cars.

Summary of offences of the bankrupt

  • Bankrupt did not fully and truthfully answer questions at an examination held pursuant to the Act.

Court decision

The bankrupt pleaded guilty to the above-mentioned offence. Other charges were withdrawn on condition that all circumstances be considered in sentencing. He was sentenced to a 12-month conditional sentence, including six months under house arrest and 50 hours of community service. He must also pay $135,400 to the trustee, including at least $6,000 during the 12-month conditional sentence.

Criminal/penal case
Court No .: 500-73-003342-090
OSB No .: 41-1061087

Background

Having already accumulated $45,000 in debts, an individual on social insurance incurred additional debts of nearly $200,000 in less than one year. The woman made false statements on her credit-card applications by claiming that she worked for a clothing company. At the time of her bankruptcy, she had incurred debts with about 20 credit companies. She attributed her bankruptcy to her accumulated debts and lack of employment.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt was found guilty of 14 counts of fraud and sentenced to two years of probation, with the following conditions:

  • not possess any credit or debit cards that are not in her name;
  • not seek to obtain any credit cards;
  • repay $50,000.

Criminal/penal case
Court Nos .: 500-73-003422-108 and 500-73-003421-100
OSB No .: 41-1107434

Background

An unemployed individual obtained $350,000 in cash advances and made purchases totalling $54,000 over a six-month period. More than $30,000 of these purchases were made at the same convenience store. In addition, the man spent $8,500 to buy airline tickets. At the time of his bankruptcy, he had incurred debts with 38 credit companies. The bankrupt attributed his bankruptcy to a gambling problem.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt was found guilty of 34 counts of fraud. He was sentenced to two years less a day, to be served in the community, with the following conditions:

  • remain at home 24 hours a day for the first 12 months, and between 10:00  p.m. and 7:00  a.m. for the next 12 months less a day;
  • perform 240 hours of community service within 12 months;
  • refrain from going to casinos or any other place where there might be gambling;
  • not take any steps to obtain credit cards.

This is to be followed by two years of probation.


Criminal/penal case
Court No.: 500-73-003292-097
OSB No.: 41-1021240

Background

Having already accumulated $9,000 in debts, a woman incurred additional debts of nearly $100,000 in three months, knowing full well how precarious her financial situation was. The woman wrote a number of not sufficient funds (NSF) cheques to try to repay her debts. In particular, she made two deposits that were later cancelled because the issuer's bank account could not be found. She didn't use her credit cards any further, and declared bankruptcy four months later. She attributed her bankruptcy to abusive use of credit and gambling.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt was found guilty of 13 counts of fraud. She received a suspended sentence of two years less a day, with the following conditions:

  • remain in the court district, except with written permission from the Court or the supervisor;
  • inform the Court or the supervisor of any change of address or name, and quickly advise them of any change of employment or profession;
  • refrain from going to any establishment where there is gambling for money.

In addition, two years of probation will begin at the end of the sentence.


Criminal/penal case
Court Nos.: 500-73-003436-108 and 500-73-003435-100
OSB No.: 41-1037204

Background

Following his separation, a man sold his house and spent the $85,000 in equity at the casino. His credit-card debts went from $1,500 to more than $137,000 in nine months. Among other things, he purchased construction materials, furniture and electrical appliances. At the time of his bankruptcy, he had no assets. He attributed his bankruptcy to his separation and gambling.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt was found guilty of 14 counts of fraud. He was sentenced to 12 months, to be served in the community, with the following conditions:

  • remain at home 24 hours a day for the first four months, and between 11:00 p.m. and 7:00 a.m. for the next eight months;
  • refrain from going to casinos;
  • perform 150 hours of community service within eight months.

In addition, 12 months of probation and prohibition against going to casinos will begin at the end of the sentence.


2010

Background

The bankrupt sold his home two days before he filed for bankruptcy. In his accounting to the trustee, he claimed to have received $43,000 from the transaction. When examined by the official receiver from the Office of the Superintendent of Bankruptcy, however, he said he had received $10,000 from the sale of the property. Upon further investigation, the trustee discovered that the bankrupt had, in fact, received some $135,600 from the transaction. When he filed for bankruptcy, he reported assets of $1,700 and debts of $250,400.

Summary of offences of the bankrupt

  • Bankrupt did not fully and truthfully answer questions at an examination held pursuant to the Act.

Court decision

The bankrupt pleaded guilty to one count under s. 198(1)(b) of the BIA for refusing or neglecting to answer fully and truthfully questions under oath when examined by the official receiver. He was found guilty and given a conditional discharge, and sentenced to probation for one year and 75 hours of community service.


Criminal/penal case
Court No. : 4811-998-09-12003743-00
OSB No. : 31-956876

Background

The bankrupt had applied for credit cards and personal lines of credit from a number of institutions, giving false information regarding his employment status and earnings. Through these credit sources, he obtained cash advances and did not repay them. He also bought items on retail credit and resold them without paying for them. He said he used the money for gambling, but revealed that he made large payments to family and friends. When he filed for bankruptcy, he reportedly owed about $265,000 and held assets of $4,600.

Summary of offences of the bankrupt

  • Bankrupt obtained credit or property by making false representations.
  • Bankrupt disposed of property obtained on credit and not paid for.

Court decision

The bankrupt pleaded guilty to six counts under the BIA and was sentenced to two concurrent conditional prison sentences of 12 months to be served as follows: The bankrupt will be subject to house arrest and electronic monitoring for the first six months and an imposed curfew for the remaining six months. He was also ordered to repay $145,757.76 to his creditors.


2009

Background

Over a period of five months, an unemployed man accumulated $372,000 in debts with 37 credit-card companies. After making payments totalling $365,000, of which $350,000 was paid with 44 not sufficient funds (NSF) cheques, the man declared bankruptcy.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt was found guilty of 25 counts of fraud. He was sentenced to 22 months in prison and two years of probation.


Background

Three months before filing for bankruptcy, the bankrupt sold a van for $5,000 and property at a Toronto address. The bankrupt admitted he had a gambling problem and indicated that his business slowed down, both of which contributed to his insolvency. When he filed for bankruptcy, he reported that he sold the property for $300,000. Further investigation revealed that the property actually sold for $378,000, which is $78,000 more than what he had declared. In addition, he did not disclose the sale of the vehicle.

Summary of offences of the bankrupt

  • Bankrupt made a false entry or knowingly made a material omission in a statement or accounting.

Court decision

The bankrupt was convicted of having committed two offences under s. 198(1)(c) of the BIA and was sentenced to pay a $1,000 fine for each offence. He was given six months to pay these fines and was sentenced to one year of probation.

Criminal/penal case
Court No. : 540-73-000321-077
OSB No. : 41-797669

Background

After accumulating more than $37,000 in debts, an unemployed woman continued to borrow money even though she knew how precarious her financial situation was. She obtained $19,600 in cash advances and made purchases totalling $40,000 over a period of one year. She had 18 different credit cards at the time. When she declared bankruptcy, she blamed her debts on gambling.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt was found guilty of 14 counts of fraud. She was given a 12-month suspended sentence, with the following conditions:

  • remain at home 24 hours a day for the first four months;
  • remain at home between 11:00 p.m. and 7:00 a.m. for the next four months, the only authorized absences being for medical reasons and religious activities;
  • not possess or seek to obtain any credit cards; and
  • not go to casinos or any other place where there might be gambling.

In addition, one year of probation will begin at the end of the suspended sentence.


Criminal/penal case
Court No. : 500-73-002842-074
OSB No. : 41-334472

Background

An individual worked as a cashier and his wife didn't work. Even though they had already accumulated debts of $110,000, they continued to make purchases totalling more than $500,000 with their credit cards over a period of six months, contracting debts that they knew they would never be able to pay. At the time of the bankruptcy, the couple had debts with 77 credit card companies.

Summary of offences of the bankrupts

  • Bankrupts used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt was found guilty of 15 counts of fraud. He was sentenced to a prison term of two years less a day, as well as three years of probation following imprisonment.

The bankrupt's spouse was given a suspended sentence of two years less a day, with the following conditions:

  • remain at home 24 hours a day for the entire period of the suspended sentence, the only authorized absences being for legitimate work, medical reasons and religious worship;
  • not possess any credit cards;
  • perform 100 hours of community service in the following year; and
  • have a telephone line without a call-forwarding mechanism.

She was also given a two-year probationary period during which she must keep the peace.

Criminal/penal case
Court No. : 500-73-002878-078
OSB No. : 41-321646

Background

Whereas the bankrupt had total income of $4,000 in the eight months preceding his bankruptcy, he obtained $85,000 in cash advances in two months and made purchases totalling $15,000 using his credit cards. He paid the credit-card companies using not sufficient funds (NSF) cheques and took advantage of the clearing period to obtain additional cash advances or to make other purchases. In spite of these debts, the bankrupt took a two-month trip. Upon his return, he declared bankruptcy, with debts amounting to more than $95,000.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt was found guilty of 15 counts of fraud. He was sentenced to 18 months to be served in the community, with the following conditions:

  • remain at home between 7:00 p.m. and 6:00 a.m. for the first six months, the only authorized absences being for legitimate and paid employment or to go to the hospital or a clinic in an emergency;
  • remain at home for the next six months and respect a curfew of 8:00 p.m. to 6:00 a.m. as per the same conditions;
  • not possess any credit cards;
  • perform 200 hours of community service over a period of 12 months;
  • relinquish his Canadian passport.

In addition, one year of probation will begin at the end of the sentence.


Criminal/penal case
Court No. : 500-73-003134-091
OSB No. : 41-336182

Background

After owning a convenience store for three months, a man fell into debt. Although he had only been able to pay rent for two months and the store had been robbed twice, he made purchases totalling more than $171,000 over a period of one year before declaring bankruptcy. At that point, the bankrupt had accumulated more than $153,000 in debts with 19 credit card companies.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt was found guilty of 17 counts of fraud. He was sentenced to a prison term of 12 months concurrent and two years of probation beginning at the end of his prison sentence. He was also prohibited from possessing any credit cards.


Criminal/penal case
Court No. : 500-73-002895-072
OSB No. : 41-833483

Background

A man had a job that provided him with income of $22,000 in nine months. He also owned a company. He accumulated $106,000 in additional debts over a period of five months, including $90,000 in less than one month. His business declared bankruptcy and one month later, he declared personal bankruptcy for a total of $273,000.

Summary of offences of the bankrupt

  • Bankrupt used deceit, falsehood or other fraudulent means to defraud various credit-card companies of different amounts of money.

Court decision

The bankrupt was found guilty of eight counts of fraud. He was given a 12-month suspended sentence, with the following conditions:

  • remain at home 24 hours a day for the first four months;
  • remain at home between 11:00 p.m. and 6:00 a.m. for the next four months;
  • not possess or seek to obtain any credit cards;
  • not go to casinos or any other place where there might be gambling; and
  • perform 85 hours of community service during the 12 months.

In addition, two years of probation will begin at the end of the suspended sentence.