Receivership Order: On November 8, 2021, BDO Canada Limited was appointed as the Receiver over Altmore Mortgage Investment Corporation and related entities under the Business Corporations Act and Courts of Justice Act.
Contempt Proceedings: The Receiver filed a motion for a contempt order against Ian Ross McSevney for failing to comply with the Receivership Order. McSevney was found in contempt on April 11, 2022.
Compliance Efforts: After retaining legal counsel, McSevney took steps to comply, including attending examinations and providing requested documents.
Court’s Analysis:
The court considered the proportionality of penalties, mitigating factors, and the purpose of contempt sanctions, which aim primarily at gaining compliance and maintaining respect for court authority.
The court found that imprisonment was not warranted, given McSevney's subsequent compliance efforts.
Penalties: The court imposed a fine of $15,000 on McSevney for contempt, to be paid to the Receiver, and designated it as a "penalty" under the Bankruptcy and Insolvency Act.
Costs: McSevney was also ordered to pay $5,000 in costs to the Receiver.
