The bankrupt applied for a discharge after being in bankruptcy for 17 years.
The discharge was opposed by the Trustee and several creditors, including the Canada Revenue Agency, on the basis of multiple facts under section 173 of the Bankruptcy and Insolvency Act.
The court found that the bankrupt had misappropriated over $9 million, spent the funds on an extravagant lifestyle, failed to account for the loss of assets, and breached his duties to report income and expenses.
The court also found the bankrupt breached the duty of good faith under section 4.2 of the BIA.
Concluding that the bankrupt was not an honest and unfortunate debtor, the court refused an absolute discharge and instead granted a conditional discharge requiring the bankrupt to pay $100,000 to the estate and fulfill all outstanding tax and reporting obligations.
