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Costs of $7,551.23 awarded to the trustee in bankruptcy following the dismissal of the moving parties' motion.
Following the dismissal of the moving parties' motion on June 24, 2026, the Court of Appeal for Ontario ordered the moving parties to pay the trustee in bankruptcy costs in the all-inclusive amount of $7,551.23.
Leave to appeal bankruptcy costs order denied as procedural and unmeritorious.
Investors in a bankrupt's Ponzi scheme moved for leave to amend their notice of appeal to seek leave to appeal a $180,000 costs order arising from an unsuccessful cross-motion in the bankruptcy proceeding.
The motion judge held that the substance of the costs order was procedural and that it was made under the Bankruptcy and Insolvency Act, so the appeal route was governed by s. 193 of the BIA rather than the Courts of Justice Act.
Applying the narrow approach to appeals as of right under s. 193(c), the court found the order did not engage the bankrupt's property or produce a qualifying loss and therefore required leave under s. 193(e).
Leave was denied because the proposed appeal raised no issue of general importance, lacked prima facie merit, and would hinder the progress of the bankruptcy.
Ponzi-scheme profit payments were clawed back through a summary two-phase bankruptcy process.
The trustee in bankruptcy moved for a phase-one determination that profit payments made by Douglas Grozelle to net winners in a fraudulent Ponzi scheme were void as against creditors and recoverable for the estate.
The court found the hallmarks of a Ponzi scheme, held insolvency and fraudulent intent could be inferred globally, and concluded the payments were void under the Fraudulent Conveyances Act and not saved by good-faith or good-consideration defences.
The court approved a two-stage insolvency process: common liability issues resolved summarily now, with individualized quantum determinations in phase two.
The winners’ cross-motion for broad directions attacking the trustee’s process and authority was dismissed.
