Investor Updates

 

INVESTOR UPDATE (Updated September 15, 2009): Pursuant to the Order of the Honourable Justice Campbell dated September 4, 2009, the Receiver has now been discharged. This Order effectively concludes the receivership subject only to the performance of such incidental duties as may be required to complete its administration. In the event there are any future recoveries in satisfaction, in full or in part, of the Restitution Order, the Receiver shall apply to Court for approval with respect to distribution.

INVESTOR UPDATE (Updated July 13, 2009): The receiver has confirmed with counsel to the insurer that interest will be paid on all amounts owing to the individual insurance claimants. The receiver has also provided insurer's counsel with contact information for each of the insurance claimants so as to help ensure that proofs of loss are sent to the appropriate addresses. Accordingly, the receiver has no further role to play with respect to the distribution of the insurance payments. Each claimant is encouraged to coordinate directly with the insurer's adjuster. Questions concerning the insurance distribution process should be directed to:

Elisa Schellmann
SCM Adjusters Canada Ltd.
531 Marion Street
Winnipeg, MB R2J 0J9
(204) 985-1777 (tel)
(204) 985-1786 (fax)
elisa.schellmann@scm.ca

All aspects of the receivership are now resolved. The receiver has scheduled a motion on July 31, 2009 for, among other things, an order of discharge. It is anticipated that at this hearing the receivership will be concluded. The complete motion record is available here (part 1 - part 2).

INVESTOR UPDATE (Updated June 23, 2009): The receiver has confirmed that the insurer does not intend to seek leave to appeal the decision of Justice Lederman (affirmed by the Ontario Court of Appeal) to the Supreme Court of Canada. Accordingly, the insurer has now begun the task of facilitating direct payment of insurance proceeds to the various claimants. The insurer's adjuster has re-issued Proofs of Loss forms to the insurance claimants. The receiver will seek further direction from the Court with respect to the payment process. In the interim, the receiver asks that the claimants not complete the re-issued Proofs of Loss.

INVESTOR UPDATE (Updated April 22, 2009): On April 20, 2009, the Ontario Court of Appeal entered an Order affirming the decision of Justice Lederman dated October 8, 2009, and awarding costs to the Receiver.

The insurer is entitled to seek leave to appeal to the Supreme Court of Canada. At this time, the receiver has no information about whether the insurer will pursue this last appeal route. In the event the insurer decides not to seek leave, then the parties will coordinate to establish a procedure for the distribution of the insurance money. As more information becomes available it will be posted to this website.

INVESTOR UPDATE (Updated November 13, 2008): The dispute concerning the interpretation of the insurance policy maintained by the Real Estate Council of Ontario ("RECO") and, more specifically, that portion of the policy governing consumer deposits proceeded to a hearing on August 25, 2008. In attendence were the Receiver's counsel, counsel for the insurance provider, and some victims of Courtney Wallis Simpson's frauds. The Honourable Justice Lederman presided. Following the submission of both written and oral argument, Justice Lederman reserved his decision for a later date. On October 8, 2008, he issued Reasons for Judgment explaining that the insurance company cannot cap its total liability at $500,000 by treating all claims as a single theft. Instead, each victim has one claim of theft that is subject to its own $500,000 of liability coverage.

On November 4, 2008, Lloyd's Underwriters filed a Notice of Appeal challenging Justice Lederman's decision. No claims will be processed until that issue is resolved. Furthermore, the appeal may result in an additional claim by the Receiver to recover costs and interest. The Receiver will post additional materials on this website as he receives them.

The dispute concerning ownership over certain shares of Dianor Resources Inc. has been resolved and approved by the court.

INVESTOR UPDATE (April 25, 2008): All real estate forming part of the receivership estate has now been sold. The related funds are being held in trust.

The matter involving certain mortgages obtained by Ajay Pahwa against three properties owned by Simpson has been settled. The estate benefited by release of $336,000 in mortgage funds otherwise payable to Ajay Pahwa and a further $70,000 repaid as funds overpaid by Simpson.

A settlement conference was scheduled for April 21, 2008, in an effort to resolve the matter involving the Real Estate Council of Ontario and more specifically, the Consumer Deposit Insurance program (Lloyd's of London as insurer). Justice Hoy presided. Although the parties were unable to resolve the main dispute concerning the interpretation of the relevant insurance policy, several outstanding procedural issues were addressed. Justice Hoy made an endorsement at the conclusion of the settlement conference. (Click here to view a copy of Justice Hoy's endorsement.)

A hearing to determine the ownership of certain Dianor Resources Inc. shares is scheduled to take place on June 17-18, 2008. In the interim, the parties will produce affidavit materials, conduct cross-examinations, and exchange legal briefs.

The Receiver will report to the court again following the scheduled settlement conference and hearing.

INVESTOR UPDATE (Febuary 13, 2008): Courtney Wallis Simpson was released to a half-way house on January 31, 2008.

The Court will consider Simpson's parole appeal on February 21, 2008, at 9:30 a.m. in Osgoode Hall, Courtroom 10, in Toronto, Ontario. Each investor has the option to receive notice of decisions made by the National Parole Board. Those requests should be made by fax to Sandra Pilgrim at (613) 634-3862.

As a condition of parole, Simpson would be prohibited from contacting any of the victims in this case. If investors wish to have other conditions placed on her parole, they may contact Simpson's parole officer, Sue Cumming, at CummingSD@csc-scc.gc.ca.

General Information

 

On November 15, 2005, Udayan Pandya filed a Statement of Claim in the Ontario Superior Court of Justice, the Honourable Mr. Justice Ground presiding, alleging that Courtney Wallis Simpson had engaged in fraud in connection with the sale of certain real estate and requested that the Court acknowledge a class of similarly defrauded investors and appoint a receiver over her assets and those of her related companies, including York Region Realty, Inc. and York Management Group. On November 17, 2005 the Court issued an Order for Appointment of An Interim Receiver pursuant to which Michael J. Quilling was appointed Receiver. Ms. Simpson has admitted that she has engaged in fraud with respect to the sale of several properties and has vowed to cooperate with and assist the Receiver in his efforts to liquidate her assets and pay as much as possible to creditors.

Court-Approved Claim Form and Procedures