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ARTICLE · 30 APRIL 2020

Securities Commission Administrative Fines Are Forever

As we discussed in a previous post, administrative penalties levied by securities commissions may survive a discharge in bankruptcy.

CanadaInsolvency/Bankruptcy/Re-Structuring

As we discussed in a previous post, administrative penalties levied by securities commissions may survive a discharge in bankruptcy. A recent decision of the Supreme Court of British Columbia (Court), Poonian (Re), 2020 BCSC 547 (Re Poonian), highlights that in addition, such administrative penalties may also prevent a discharge from bankruptcy altogether.

In Re Poonian, the Court denied an attempt by Thalbinder Singh Poonian and Shailu Poonian (the Applicants) to obtain a discharge from bankruptcy under the Bankruptcy and Insolvency Act, RSC 1985, c. B-3 (BIA).

The Applicants made a joint statement into bankruptcy on April 20, 2018 following a finding in August 2014 that they had engaged in market manipulation practices. At that time, their combined debts were valued at over $25 million, a majority of which were owed to the British Columbia Securities Commission and the Minister of National Revenue (MNR).

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