Why the “Occupy” protests will fizzle out in Canada.

The call for the September 17, 2011 Occupation of Wall Street was started in a blog post on July 13. 2011 by the Vancouver activist group, Adbusters.

The “Occupy” movement moved to Canada on Sunday, October 16, 2011 but has little traction. Most of the protests had fizzled out as of October 18th. There is just a hand full of protesters in Toronto. The exception is Occupy Vancouver which reportedly still has hundreds of protesters in front of the Art Gallery.

It’s not difficult to figure out why the Occupy movement in Canada has little staying power. The Canadian economy is strong, with perhaps the best performance of the western countries. There have been no bank failures in Canada unlike the US. Also, there have been no financial bailouts in Canada except for the automobile industry.

The unemployment rate in Canada was last reported at 7.1 percent in September of 2011. From 1976 until 2010, Canada’s Unemployment Rate averaged 8.53 percent reaching an historical high of 13.10 percent in December of 1982 and a record low of 5.90 percent in September of 2007.

This contrasts with the US with its economy in crisis, an unemployment rate of 9.1 percent and its politicians unable to stop their partisan bickering and come to grips with a solution.

But what about the occupy group’s most recognizable goal; “the reform of an unfair economic system that breeds greater inequality between a wealthy elite and everyone else”? An examination of the facts, do not support that conclusion for Canada. Let’s examine the Gini Index for some answers.

This is a list of the Gini Indices for some countries (Lower means there is less of a difference of income for top versus low income earners.):

Denmark 24.7
Sweden 25.0
Norway 25.8
Finland 26.9
Canada 32.9
Australia 35.2
UK 36.0
New Zealand 36.2
US 40.8
China 46.9

Source of data:
http://en.wikipedia.org/wiki/List_of_countries_by_income_equality

The Gini Coefficient

The Gini coefficient, invented by the Italian statistician Corado Gini, is a number between zero and one that measures the degree of inequality in the distribution of income in a given society. The coefficient would register zero (0.0 = minimum inequality) for a society in which each member received exactly the same income and it would register a coefficient of one (1.0 = maximum inequality) if one member got all the income and the rest got nothing.
In practice, coefficient values range from around 0.2 for historically equalitarian countries like Bulgaria, Hungary, the Slovak and Czech republics and Poland to over 0.6 for Central and South American countries where powerful elites dominate the economy.

The evolution of the Gini coefficient is particularly useful as it reveals trends. It shows the evolution towards greater equality in Cuba from 1953 to 1986 (0.55 to 0.22) and the growth of inequality in the USA in the last three decades during which the Gini went from 0.35 in the ’70′s to 0.40 now (and it is still rising!). Most European countries and Canada rate around 0.30, Japan and some Asian countries get around 0.35, some reach 0.40 while most African countries exceed 0.45.

As part of its efforts to promote awareness of debtor responsibilities, the Office of the Superintendent of Bankruptcy has expanded its section on Bankruptcy Abuse and Fraud to list all criminal/penal sentences rendered since 2010. This page will be updated quarterly.

Criminal/penal sentences rendered since 2010

Court file number: 500-73-002858-070 (2011)
OSB Estate number: 41-331435

The bankrupt was found guilty of nine counts of fraud under paragraph 380(1)(a) and eight counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

18-month sentence to be served in the community, with the following conditions:
house arrest 24 hours a day for the first six months, and then between 11:00 p.m. and 6:00 a.m. for the following six months;
200 hours of community service within 12 months.

Probation for one year.

Court file numbers: 500-73-003222-094, 500-73-003267-099 and 500-73-003268-097 (2011)
OSB Estate number: 42-045216

The bankrupt was found guilty of ten counts of fraud under paragraph 380(1)(a), and eight counts of fraud under subparagraph 380(1)b)i) of the Criminal Code, as well as guilty of one count under subsection 74(b) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Sentence rendered:

10 months in prison for all counts, to be served concurrently.
Probation for one year with the usual conditions, plus the following:
prohibition against obtaining more than one credit card;
requirement to turn over to the trustee the $26 000 in cash seized from the bankrupt’s residence.
Prison sentence followed by one year of probation with the usual conditions, plus a prohibition against obtaining more than one credit card.

Court file number: 500-73-003146-095 (2011)
OSB Estate number: 41-854180

The bankrupt was found guilty of five counts of fraud under paragraph 380(1)(a) and eight counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

Probation for 15 months with the usual conditions.
Repayment of $12 000 through the court registry pursuant to section 738 of the Criminal Code.

Court file numbers: 500-73-003048-085 and 500-73-003049-083 (2011)
OSB Estate number: 41-925337

The bankrupt was found guilty of eight counts of fraud under paragraph 380(1)(a) and seven counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

Conditional sentence of two years less a day with the usual conditions,plus the following:
house arrest 24 hours a day, except to meet with his supervisor, look for work or have a legitimate job, go to school or practise his religion;
prohibition against possessing bank documents that are not in his name.
At the end of the conditional sentence, probation for two years, with the statutory conditions of keeping the peace and exhibiting good behaviour, plus the following:
prohibition against possessing bank documents that are not in his name.

Court file number: 500-73-003292-097 (2011)
OSB Estate number: 42-1021240

The bankrupt was found guilty of five counts of fraud under paragraph 380(1)(a) and eight counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

Conditional sentence of two years less a day, with the following conditions:
requirement to keep the peace;
requirement to exhibit good behaviour;
requirement to respect summonses from the court;
requirement to meet with his supervisor within two business days of the order, and after that, as per the terms set by his supervisor;
requirement to remain within the court’s jurisdiction, unless given written permission to leave by the court or his supervisor;
requirement to inform the court or his supervisor of any change of address or name and quickly advise them of any change of employment or profession;
house arrest from 10:00 p.m. to 6:00 a.m., except during Ramadan or for medical care for himself or his children;
prohibition against entering any establishment where there is gambling or playing for money occurs, particularly casinos;
install and maintain a telephone land line at home.
Two-year probation subject to the following conditions:
requirement to keep the peace;
requirement to exhibit good behaviour;
requirement to respect summonses from the court;
requirement to inform the court or his supervisor of any change of address or name and quickly advise them of any change of employment or profession;
prohibition against entering any establishment where there is gambling or playing for money occurs, particularly casinos.

Court file number: 500-73-003207-095 (2011)
OSB Estate number: 41-976277

The bankrupt was found guilty of one count of fraud under paragraph 380(1)(a) of the Criminal Code.

Sentence rendered:

18-month conditional sentence with the following conditions:
house arrest 24 hours a day for the first six months, except to go to work, for medical reasons, and on Wednesdays between 12:00 p.m. and 4:00 p.m.;
curfew between 11:00 p.m. and 7:00 a.m. for the first six months, except to go to work, for Christmas, and for medical reasons;
150 hours of community service within nine months;
requirement to undergo treatment for gambling and report to his supervisor.
Probation for 12 months.

Court file number: 505-73-000419-098 (2011)
OSB Estate number: 41-1050569

The bankrupt was found guilty of six counts of fraud under paragraph 380(1)(a) of the Criminal Code.

Sentence rendered:

15-month sentence to be served in the community, with the following conditions:
house arrest 24 hours a day for the first five months, and then between 11:00 p.m. and 7:00 a.m. for the next five months;
30 hours of community service.
At the end of the conditional sentence, probation for two years and 70 hours of community service.

Court file numbers: 500-73-003436-108 and 500-73-003435-100 (2011)
OSB Estate number: 41-1037204

The bankrupt was found guilty of 12 counts of fraud under paragraph 380(1)(a) and two counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

12-month sentence to be served in the community, with the following conditions:
requirement to keep the peace;
requirement to exhibit good behaviour;
requirement tomeet with his supervisor and remain in the court’s jurisdiction, unless given written permission to leave by the court or his supervisor;
requirement to inform the court or his supervisor of any change of address or name and quickly advise them of any change of employment or profession;
prohibition against entering licensed establishments;
prohibition against entering casinos;
150 hours of community service within eight months;
requirement to continue treatment;
house arrest 24 hours a day for the first four months and then between 11:00 p.m. and 7:00 a.m. for the next eight months.
Probation for 12 months, with the usual conditions, plus prohibition against entering casinos.

Court file numbers: 500-73-003328-099 and 500-73-003329-097 (2011)
OSB Estate number: 41-10136131

The bankrupt was found guilty of five counts of fraud under paragraph 380(1)(a) and four counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

16-month conditional sentence.
Probation for two years.
Requirement to continue treatment and refrain from applying for credit cards.

Court file number: not available (2011)
OSB Estate number: 41-1034476

The bankrupt was found guilty of one count of fraud under paragraph 380(1)(a) and four counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

12-month conditional sentence, with the mandatory conditions:
prohibition against possessing credit cards or bank documents that are not in his name;
requirement to inform his supervisor within 48 hours of obtaining a credit card, and provide him with the name of the banking institution;
requirement to maintain a telehone land line without call forwarding, provide the information to his supervisor, and answer the phone;
curfew from 9:00 p.m. to 6:00 a.m. except for medical emergencies or with the written permission of his supervisor, and except for December 24, 25, 26 and 31, 2011, and January 1 and 2, 2012;
requirement to continue working with an agency as long as the agency recommends it.
Probation for two years, with the following mandatory conditions:
prohibition against possessing credit cards or bank documents that are not in his name;
requirement to inform his supervisor within 48 hours of obtaining a credit card, and provide him with the name of the banking institution;
requirement to meet with his probation officer as often as the officer feels is necessary, follow his recommendations and pay the victim-fine surcharge within six months.

Court file number: 500-73-002890-073 (2011)
OSB Estate number: 41-324488

The bankrupt was found guilty of 18 counts of fraud under paragraph 380(1)(a) and four counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

Two years less a day to be served in the community, with the following conditions:
house arrest 24 hours a day, seven days a week, with the usual conditions;
240 hours of community service within 12 months.

Probation for three years, with the mandatory conditions, plus the following:
prohibition against entering casinos or other establishments where gambling occurs.

Court file numbers 700-73-001207-093 and 700-73-001208-091 (2011)
OSB Estate number: 41-337013

The bankrupt was found guilty of 10 counts of fraud under paragraph 380(1)(a) and four counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

Conditional sentence of two years less a day, with the following conditions:
requirement to follow the recommendations of his probation officer;
prohibition against entering casinos or other establishments where there is gambling;
requirement to pay the victim-fine surcharge of $100 per count within two years;
requirement to keep the peace;
requirement to exhibit good behaviour;
requirement to meet with his supervisor and remain in the court’s jurisdiction, unless given written permission to leave by the court or his supervisor;
inform the court or his supervisor of any change of address or name and quickly advise them of any change of employment or profession;
house arrest 24 hours a day for the first 12 months, and then between 10:00 p.m. and 6:00 a.m. for the next 12 months less a day.

Court file number: 24340761 (2011)
OSB Estate number: 23-1138331

The bankrupt was found guilty of three counts under subsection 198(2) of the BIA.

Sentence rendered:

10-month conditional sentence.
100 hours of community service.

Court file number: not available (2011)
OSB Estate number: 35-1215350

The bankrupt was found guilty of two counts under paragraph 198(1)(c) of the BIA.

Sentence rendered:

Fine of $1 250.

Court file number: not available (2011)
OSB Estate number: 11-1036347

The bankrupt was found guilty of one count under paragraph 198(1)(e) and three counts under paragraph 198(1)(g) of the BIA.

Sentence rendered:

Conditional discharge.
One-year probation.

Court file number: 74057-1 (2011)
OSB Estate number: 11-1165496

The bankrupt was found guilty of one count of fraud under section 368 of the Criminal Code.

Sentence rendered:

Requirement to report to a probation officer.
50 hours of community service.
Requirement to keep the peace.
Requirement to exhibit good behaviour.
Requirement to notify of any change of name or address.

Court file number: 500-73-003123-094 (2010)
OSB Estate number: 41-964953

The bankrupt was found guilty of three counts of fraud under paragraph 380(1)(a) of the Criminal Code.

Sentence rendered:

14 months in prison, followed by two years of probation with the usual conditions, i.e.:
requirement to keep the peace;
requirement to exhibit good behaviour;
requirement to report to his probation officer within five days of his release;
requirement to follow any treatment the probation officer recommends;
prohibition against possessing credit cards.

Court file numbers: 500-73-003050-081 and 500-73-003051-089 (2010)
OSB Estate number: 41-334110

The bankrupt was found guilty of nine counts of fraud under paragraph 380(1)(a) and five counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

14 months in prison, followed by two years of probation with the usual conditions, i.e.:
requirement to keep the peace;
requirement to exhibit good behaviour;
prohibition against possessing credit cards or bank documents in his possession that are not in his name.
One month of prison for each count under subparagraph 380(1)b)i) of the Criminal Code, to be served concurrently.

Court file number: 500-73-000319-071 (2010)
OSB Estate number: 41-323676

The bankrupt was found guilty of seven counts of fraud under paragraph 380(1)(a) and nine counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

Conditional sentence of two years less a day, with a number of conditions, including:
requirement to keep the peace;
house arrest 24 hours a day for the first eight months, and then between 11:00 p.m. and 7:00 a.m. for the following eight months, except for purposes of work, medical reasons, religious worship, etc.
Probation for two years beginning at the end of the conditional sentence, with the usual conditions, including:
requirement to keep the peace;
prohibition against entering casinos or other establishments where gambling occurs.

Court file number: 500-73-002856-074 (2010)
OSB Estate number: 41-759787

The bankrupt was found guilty of 23 counts of fraud under paragraph 380(1)(a), and eight counts of fraud under subparagraph 380(1)b)i) of the Criminal Code, as well as guilty of one count of possession of illegally obtained goods.

Sentence rendered:

15 months in prison for counts 1 to 20 and 27 to 29.
12 months in prison to be served concurrently for counts 21 to 26, 30 and 31, followed by two years of probation with the usual conditions, plus the following:
prohibition against possessing bank documents, including credit cards, automated teller cards, cheques or bank drafts, that are not in his name.

Court file numbers: 500-73-003235-096 and 500-73-003236-094 (2010)
OSB Estate number: 41-1030270

The bankrupt was found guilty of five counts of fraud under paragraph 380(1)(a) and seven counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

12-month conditional sentence with the usual conditions, plus the following:
curfew from 8:00 p.m. to 7:00 a.m. for the first six months (except for work or medical emergencies);
80 hours of community service;
prohibition against entering casinos or any other establishment where gambling occurs;
requirement to begin or continue participating in a treatment program for gambling, to be determined with his supervisor;
prohibition against entering bars and discotheques.
Two years of probation subject to the usual conditions, plus the following:
prohibition against entering casinos or other establishments where gambling occurs;
requirement to begin or continue a treatment program for gambling, to be determined with his supervising agent.

Court file number: 500-73-002739-072 (2010)
OSB Estate number: 41-273272

The bankrupt was found guilty of five counts of fraud under paragraph 380(1)(a) and four counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

Conditional sentence of two years less a day to be served in the community, with the following conditions:
house arrest 24 hours a day for the first eight months, except for work, health reasons, and grocery shopping on Saturdays;
requirement to abide by the same conditions for the following eight months, but with a curfew between 11:00 p.m. and 7:00 a.m.;
for the last eight months, abide by the usual conditions, plus the following (with no curfew):
prohibition against possessing any commercial instruments, including credit cards, that are not in his name;
prohibition against having a call-forwarding device.
Probation for two years, with no conditions.

Court file number: 500-73-003192-099 (2010)
OSB Estate number: 41-930587

The bankrupt was found guilty of five counts of fraud under paragraph 380(1)(a) and two counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

15-month conditional sentence to be served in the community, with the usual conditions, plus the following:
prohibition against leaving the province of Quebec;
prohibition against entering casinos or other establishments where gambling occurs;
prohibition against gambling;
prohibition against applying for credit from a financial institution;
house arrest 24 hours a day until October 9, 2010, except for certain reasons approved by his supervisor;
after that, curfew between 11:00 p.m. and 7:00 a.m. until April 9, 2011;
84 hours of community service.

Court file number: 500-73-003231-095 (2010)
OSB Estate number: 41-1034550

The bankrupt was found guilty of six counts of fraud under paragraph 380(1)(a) and six counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

Conditional sentence of two years less a day, with the following conditions:
house arrest 24 hours a day for the first eight months, and 120 hours of community service;
curfew between 11:00 p.m. and 6:00 a.m. for the following eight months;
prohibition against possessing credit cards.
Two years of probation.

Court file number: 500-73-003233-091 (2010)
OSB Estate number: 41-1009714

The bankrupt was found guilty of six counts of fraud under paragraph 380(1)(a) and three counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

15-month conditional sentence for each count, followed by two years of probation with certain conditions, without fine or surcharge.

Court file number: 500-73-002761-076 (2010)
OSB Estate number: 41-325433

The bankrupt was found guilty of eight counts of fraud under paragraph 380(1)(a) and four counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

12 months in prison, followed by two years of probation with the usual conditions.

Court file number: 540-73-000337-081 (2010)
OSB Estate number: 41-333564

The bankrupt was found guilty of 15 counts of fraud under paragraph 380(1)(a) of the Criminal Code.

Sentence rendered:

14 months in prison, served consecutively, for each count.
Two years of probation with the usual conditions.

Court file number: 500-73-003147-093 (2010)
OSB Estate number: 41-963678

The bankrupt was found guilty of 12 counts of fraud under paragraph 380(1)(a) of the Criminal Code.

Sentence rendered:

15 months in prison, followed by two years of conditional probation, probationary monitoring and prohibition against entering casinos or playing video lottery.

Court file number: 500-73-003164-098 (2010)
OSB Estate number: 41-914690

The bankrupt was found guilty of 11 counts of fraud under paragraph 380(1)(a) and three counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

12-month conditional sentence with the usual conditions, plus the following:
house arrest 24 hours a day for the first four months, and then between 10:00 p.m. and 7:00 a.m. for the next four months;
100 hours of community service.

Court file number: 500-73-003162-092 (2010)
OSB Estate number: 41-305713

The bankrupt was found guilty of 11 counts of fraud under paragraph 380(1)(a) and three counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

12-month conditional sentence to be served in the community, with the usual conditions, plus the following:
100 hours of community service;
house arrest 24 hours a day for the first four months, and then between 11:00 p.m. and 7:00 a.m. for the next four months.
Probation for two years.

Court file number: 500-73-003211-097 (2010)
OSB Estate number: 41-967135

The bankrupt was found guilty of one count of fraud under paragraph 380(1)(a) of the Criminal Code.

Sentence rendered:

18-month conditional sentence to be served in the community, with the usual conditions, plus the following:
house arrest 24 hours a day for the first six months, and then between 11:00 p.m. and 7:00 a.m. for the next six months.
Probation for 18 months.

Court file numbers: 505-73-000403-092 and 505-73-000404-090 (2010)
OSB Estate number: 41-975002

The bankrupt was found guilty of 12 counts of fraud under paragraph 380(1)(a) of the Criminal Code.

Sentence rendered:

18-month conditional sentence with the following conditions:
house arrest 24 hours a day for the first six months, and then between 10:00 p.m. and 7:00 a.m. for the next six months;
150 hours of community service.

Probation for two years.

Court file number: 500-73-003113-095 and 500-73-003114-093 (2010)
OSB Estate number: 41-1034565

The bankrupt was found guilty of 12 counts of fraud under paragraph 380(1)(a) and four counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

Conditional sentence of two years plus a day.
Probation for 18 months.

Court file number: 500-73-003219-090 (2010)
OSB Estate number: 41-905178

The bankrupt was found guilty of nine counts of fraud under paragraph 380(1)(a) and one count of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

18-month conditional sentence to be served in the community, with the usual conditions, notably:
requirement to keep the peace;
house arrest between 9:00 p.m. and 7:00 a.m. seven days a week for the first 12 months, except for legitimate, paid work;
prohibition against possessing any credit cards.
One year of probation beginning at the end of the conditional sentence, with the usual conditions, notably:
requirement to keep the peace;
requirement to attend any treatment recommended by his supervisor;
prohibition against possessing credit cards.

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Court file number: 500-73-003219-090 (2010)
OSB Estate number: 41-905175

The bankrupt was found guilty of nine counts of fraud under paragraph 380(1)(a) and one count of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

18-month conditional sentence to be served in the community, with the usual conditions, notably:
requirement to keep the peace;
house arrest between 9:00 p.m. and 7:00 a.m. seven days a week for the first 12 months, except for legitimate paid work;
150 hours of community service;
prohibition against possessing any credit cards.

One year of probation beginning at the end of the conditional sentence, with the usual conditions, notably:
requirement to keep the peace;
requirement to attend any treatment recommended by his supervisor;
prohibition against possessing credit cards.

Court file number: 500-73-002767-073 (2010)
OSB Estate number: 41-246335

The bankrupt was found guilty of 12 counts of fraud under paragraph 380(1)(a) and seven counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

18-month conditional sentence to be served in the community, with the following conditions:
house arrest 24 hours a day for the first six months;
curfew from 11:00 p.m. to 7:00 a.m. for the next six months.
Probation for two years with the following conditions:
120 hours of community service;
prohibition against possessing bank instruments, including credit cards, that are not in his name;
requirement to have a land-line telephone at home;
prohibition against having any telephone conversation of more than 10 minutes with a third party.

Court file number: 500-73-003288-095 (2010)
OSB Estate number: 41-1187525

The bankrupt was found guilty of six counts of fraud under paragraph 380(1)(a) and two counts of fraud under subparagraph 380(1)b)i) of the Criminal Code.

Sentence rendered:

18-month conditional sentence with the following conditions:
house arrest 24 hours a day for the first six months, and then between 10:00 p.m. and 6:00 a.m. for the next six months;
150 hours of community service;
requirement to follow his supervisor’s instructions;
prohibition against possessing or using credit cards.
Probation for two years.

Court file number: not available (2010)
OSB Estate number: 31-444132

The bankrupt was found guilty of one count under paragraph 198(1)(b) of the Bankruptcy and Insolvency Act (BIA).

Sentence rendered:

Conditional discharge.
Probation for one year.
75 hours of community service.

Court file number: not available (2010)
OSB Estate number: 31-442408

The bankrupt was found guilty of two counts under paragraph 198(1)(c) of the BIA.

Sentence rendered:

A $1 000 fine for each offence, to be paid within the next six months.
One-year probation.

Court file number: not available (2010)
OSB Estate number: 31-956876

The bankrupt was found guilty of three counts under paragraph 198(1)(g) and three counts under paragraph 198(1)(e) of the BIA.

Sentence rendered:

12-month conditional sentence on one count under paragraph 198(1)(g) of the BIA.
12-month conditional sentence concurrent on the remaining five charges.
House arrest, with electronic monitoring for six months and with a curfew for the remaining six months.
Payment of a standing restitution for $145 757.76.

Court file number: 009-47210 (2010)
OSB Estate number: 21-79079

The bankrupt was found guilty of two counts under subsection 198(2) of the BIA.

Sentence rendered:

Six-month conditional discharge.
Order to be rescinded later if the debtor has complied with conditions; the RCMP would issue a closing letter at that time.

Court file number: not available (2010)
OSB Estate number: 22-1243218

The bankrupt was found guilty of three counts under paragraph 380(1)(a) of the Criminal Code.

Sentence rendered:

Requirement to abide by the conditions included in a conditional sentence order for 18 months:
house arrest for three months;
100 hours of community service.
Payment of three restitution orders: $13 000, $5 900 and $5 497.50.

Court file number: not available (2010)
OSB Estate number: 31-984200

The bankrupt was found guilty of one count under paragraph 198(1)(a), one count under paragraph 198(1)(b), one count under paragraph 198(1)(c) and four counts under paragraph 198(1)(g) of the BIA.

Sentence rendered:

12-month conditional sentence with nine months’ house arrest for the count under paragraph 198(1)(a).
$5 000 fine for the count under paragraph 198(1)(b).
12-month conditional sentence, to be served concurrently, for the rest of the counts.
60 hours of community service.
Attendance at rehabilitative programs as recommended by the bankrupt’s supervisor.
Prohibition against entering casinos.
Requirement to register in the block-entry program at Ontario casinos.

Court file number: not available (2010)
OSB Estate number: 32-1020029

The bankrupt was found guilty of one count under paragraph 198(1)(b) and three counts under paragraph198(1)(g) of the BIA, and five counts under paragraph 380(1)(a) of the Criminal Code.

Sentence rendered:

Conditional sentence of two years less a day on the Criminal Code charges.
Subsequent counts concurrent on the BIA charges.
12 months’ house arrest.
120 hours of community service.
Attendance at a treatment program for gambling.
Total restitution payment of $30 000 (freestanding).
Curfew.
Prohibition against applying for any credit cards, personal loans or credit vehicles.
Prohibition against entering any establishment where gambling occurs.
Prohibition against gambling.

Court file number: not available (2010)
OSB Estate number: 25-811197

The bankrupt was found guilty of two counts under paragraph 198(1)(c) and one count under paragraph 198(1)(e) of the BIA.

Sentence rendered:

Six-month conditional sentence on both charges inclusive.
$2 000 fine on paragraph 198(1)(c) charge.
$5 000 fine on paragraph 198(1)(e) charge.

Court file number: not available (2010)
OSB Estate number: 31-450552

The bankrupt was found guilty of two counts under paragraph 198(1)(e) of the BIA.

Sentence rendered:

Fine of $2 500 for each count, for a total fine of $5 000.

Court file number: not available (2010)
OSB Estate number: 33-850392

The bankrupt was found guilty of one count under paragraph 198(1)(g) of the BIA.

Sentence rendered:

Nine-month conditional sentence.
Payment of a restitution order in the amount of $24 000.

A Personal Bankruptcy Story

“A Personal Bankruptcy Story” is one of the chapters in our book The Personal Insolvency Guide. This book is available for FREE at this link.

When John lost his job due to corporate “downsizing,” he wasn’t too concerned about getting another job. He knew he was well trained and had good references. He was only 45 years old and knew he had 20 years of good job productivity ahead of him.

John is married with two children, ages 10 and 13. John’s wife, Mary, had recently re-entered the job market doing office clerical work.

Six months later John was very worried. He still had no job. He had submitted scores of job applications and been on many job interviews. No one wanted to hire him at even close to his previous salary. His savings were gone and Mary’s income was not enough to live on. They had started to use credit cards to meet their living expenses.

Another six months passed. John now had a job but he was only making half what he had made before the downsizing. Between he and Mary they were still making less than his salary before the downsizing. John and Mary had cut back on their expenses in order to meet their living expenses, but now had a debt load of $30,000 spread over six bank and department store credit cards. Some of the cards carried interest of over 18 percent per annum, and John and Mary could not meet the payments.

Collectors started to call. One collector found out where John worked and was regularly calling him at work. John was afraid that if his employer knew he was getting collection calls at work he would lose his job. Worst of all, one creditor got a judgement against him and was threatening to garnishee his wages. John knew if this happened he would lose his job for sure. John felt so much stress that he could only sleep a few hours a night. People were commenting that he didn’t look well.

Fortunately, John’s best friend was aware of the problems and suggested that John and Mary make an appointment to see a trustee in bankruptcy. John and Mary filled out an information form outlining their financial situation and took it to their initial consultation with the trustee.

They were both nervous about meeting the trustee, but after only a few minutes with her they felt much more at ease. The trustee had got coffee for them and told them she needed a few moments to review the financial information they had brought in.

After about five minutes, the trustee finished reviewing the financial information and asked them some questions:

 Who was putting the most pressure on them?
 Have you listed all your debt and assets?
 Have you made any extraordinary payments to any creditors including family in the last year?

The trustee explained how bankruptcy worked and asked if they had any questions. John said he was concerned about his credit rating and said he didn’t want to go bankrupt and ruin his credit rating. The trustee had heard this concern many times and gently pointed out that John’s credit rating was already so bad that a bankruptcy wasn’t going to make it worse. The trustee also reminded John and Mary that they had reviewed the Superintendent’s excess income standards and their income was not enough to allow a proposal to be made. In fact, the Superintendent’s excess income guidelines did not require John to make any payments from excess income. John was just required to pay the trustee’s expenses and costs.

John said his next big concern was that his salary was going to be garnisheed and then he would lose his job.

The trustee told John and Mary that a bankruptcy would prevent a garnishee. The trustee suggested that John and Mary discuss what they felt they should do and then let her know. She reminded them that she could get a bankruptcy in place in a few hours and would phone the judgement creditor, to inform the creditor of the bankruptcy and prevent the garnishee.

John and Mary discussed what to do that evening. The next morning John phoned the trustee and said he would like to proceed as soon as possible. The trustee asked if John could come in at lunchtime to sign the papers. John did this.

It is now 10 months later. John has been discharged from bankruptcy and all his debts have been written off. John was surprised at how smoothly the bankruptcy proceeded. The trustee did prevent the wage garnishee. Creditors did stop calling him for payment. He could now sleep better and concentrate on doing a good job at work.

He had been concerned about the creditors’ meeting and thought of creditors grilling him but the trustee said that there would only be a meeting if a sufficient number of creditors requested it. No one did. He had submitted monthly budgets and made his required monthly payments, which over 9 months totaled $1,700. He had attended his two counselling sessions and that was it!

John knows that in six years the bankruptcy will be erased from his credit record. In fact, he has already started to rebuild his credit by getting a secured credit card.

One of the major purposes of Canadian bankruptcy law is to give a person a fresh financial start. Part of that fresh start is to re-establish a good credit rating so the person can fully participate in the Canadian economy.

BankruptcyCanada.com has developed a FREE comprehensive step by step procedure that will rebuild a person’s credit rating in the quickest possible time. The steps will allow a person to get a secured credit card and a car loan shortly after he or she is discharged. Provided the income tests are met, a year after a bankruptcy discharge the person should be able to qualify for most loans at excellent interest rates.

Two years after a bankruptcy discharge the person will be able to get the most difficult credit of all – a mortgage – at the same interest rate, as the most credit worthy person who has never been in bankruptcy.

Full information, including all the forms required, is available at:
http://www.bankruptcycanada.com/Credit-Repair-Canada.htm

The 5 steps towards a good credit rating after a bankruptcy or a consumer proposal are:

Step 1 - Get your Bankruptcy Discharge or the Certificate of Completion for your Consumer Proposal or Division I Proposal.

Step 2 – Clean up your credit. Check your credit report and write to the credit bureau to correct any errors.

Step 3 - Gain New Credit. You now have to acquire new credit to prove your credit worthiness. A good place to start is with a secured credit card. Getting a secured card, at the link we will provide, is virtually guaranteed. You should also get other credit such as a loan for an RRSP, a car loan etc.

Step 4 - Accumulate your Down Payment. The minimum down payment is 5% with a mortgage guaranteed by CMHC. To qualify for this mortgage you must have been discharged for at least two years and one day and have at least one year of re-established credit.

Step 5 - Contact a Mortgage Professional who is experienced at helping people, who were in bankruptcy or faced other financial challenges, get a mortgage.

Bankruptcy Office Publishes a Bankruptcy Abuse and Fraud Section.

The Office of the Superintendent of Bankruptcy’s website now contains a new section called “Bankruptcy abuse and fraud,” which looks at abuse and fraudulent activity by debtors within the insolvency system. Designed to raise awareness about debtor compliance, the content focuses on the duties of the bankrupt, provides information on what constitutes non-compliant behaviour, and includes real-life examples of criminal convictions and Court decisions on debtor discharges.

The section reports that the most common offences committed under the 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;
• Refuses to respond fully and truthfully to questions posed during an examination held in accordance with the BIA.

Here is one case summary:

Criminal/penal case
Court No.: 540-73-000321-077 (2009)
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

• The 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.

The section also provides information on the discharge process, the roles of debtors and creditors, and investigations conducted by the OSB’s Special Investigation Units and the Royal Canadian Mounted Police.

You can access the new section at the following link: http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02654.html.