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:
SCM Adjusters Canada Ltd.
531 Marion Street
Winnipeg, MB R2J 0J9
(204) 985-1777 (tel)
(204) 985-1786 (fax)
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.
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.
Actions by the Receiver
Since his appointment, the Receiver has
retained the services of the Toronto law firm Bennett
Jones, LLP to act as his counsel. Along with his counsel
he has examined Ms. Simpson and has attended to the various
real estate properties which she owns, all of which the
Receiver intends to sell. The Receiver has also met with
the York police to review records which they have in their
possession. The Receiver is also in the process of obtaining
copies of the bank records for the numerous bank accounts
Ms. Simpson used to conduct her fraudulent scheme. Once
obtained, the Receiver will reconstruct those records
to determine the full nature and extent of the scheme.
On December 13, 2005 the Receiver submitted
his First Report. (Click here
to review the Report without exhibits which are voluminous.)
On December 20, 2005 the Court issued an Order
approving the Report. On December 22, 2005 the Receiver
submitted his Second Report. (Click here
to review the Report without exhibits which are voluminous.)
On December 23, 2005 the Receiver filed a Motion
Record and Affidavit
of Courtney Wallis Simpson. On December
23, 2005 Ajay Pahwa filed a Responding
Motion Record. On January 13, 2006 the
Receiver submitted his Third Report. (Click here
to review the Report).
As a result of the foregoing activities
of the Receiver, a Claim
Form has been approved by the Court.
The Receiver is in the process of sending claim forms
to potential claimants. More information regarding the
Claim Form is set forth below. If you have not received
a Claim Form but want to, please contact the Receiver
in the manner described below.
How to Contact the Receiver
If you believe you have been a victim
of any misconduct by Ms. Simpson, you can contact the
Receiver through the claims administrator assigned to
this case, Lesli Finn at firstname.lastname@example.org.
The best way to contact the Receiver is by sending a letter
to Michael J. Quilling, 2001 Bryan Street, Suite 1800,
Dallas, Texas 75201 or to Michael J. Quilling, care of
Lincoln Caylor, Bennett Jones, LLP, Suite 3400, One First
Canadian Place, Toronto, Ontario, Canada M5X 1A4 or by
email to JeDonna Adams at email@example.com.
Court-Approved Claim Form
December 20, 2005 the Court approved a Claim Form for
use in these proceedings. As a result, several very important
procedures were established.
the Court approved a Claim Form. Click here
to view it. This is the ONLY form which will be accepted
by the Receiver.
once you receive the claim form from the Receiver, you
MUST RETURN IT WITHIN 60 DAYS. Failure to do so may result
in your claim being disallowed. You CANNOT submit your
completed claim for to the Receiver via email. You must
mail it. It is suggested that you mail it via registered
claim form will be sent to potential claimants as they
are identified by the Receiver. If you believe you have
a claim but have not received a claim form, please contact
the Receiver's Claim Administrator, Leslie Finn at (214)
871-2100 or via email at firstname.lastname@example.org
your completed claim form is received by the Receiver,
you will be sent a post card which acknowledges receipt
and which tells you if you need to do anything further.
If the post card tells you that you do not need to do
anything further, please do not contact the Receiver's
office. It will only increase the costs. If there is anything
to report to you, it will be posted on this website.
Assets of the Receivership
Although the Receiver is still in the
process of investigating the potential assets of the receivership
estate, after initial meetings with Ms. Simpson it is
known that there are several real estate properties in
her name and others which are in the name of her designees.
The Receiver intends to sell the properties and obtain
title to those which are in the name of others. The Receiver
also believes there may be funds in various banks and
that legal claims may exist against third parties. As
investigation of these matters continue, they will be