Couple tried to get B.C. court to forgive $25M debt tied to 'morally unacceptable' actions
An appeal for a B.C. court to forgive a whopping $25 million in debt has been dismissed, with the judges ruling the case has "no merit" in any of the grounds suggested by the couple behind the appeal.
A recently posted ruling, dated Sept. 24, outlined the couple's argument for an appeal, following a decision in B.C. Supreme Court to refuse to give the couple a "fresh start."
According to a transcript of the judgment from the appellate court, Thalbinder Singh Poonian and Shailu Poonian applied for bankruptcy in 2018. At that point, they had few assets, and had accumulated a debt of $25 million.
The debt was owed largely to the B.C. Securities Commission. According to the BCSC, the couple was ordered to pay a combined $13.5 million in administrative penalties for committing what the commission described as "market manipulation," and another $5.5 million "disgorgement of their ill-gotten gains."
The Supreme Court summarized what the BCSC found as "the Poonians pumped up the price of the shares of a publicly traded company and then offloaded those shares at inflated prices to unsophisticated investors with financial problems."
Those investors lost about $7 million in total between October and December of 2009, and the BCSC found Thalbinder the "mastermind" of the scheme, the Court of Appeal judges said.
The couple decided to take the case to court in an attempt to be discharged from the debts they'd incurred through the BCSC ruling.
But the court ruled in March of this year against their bankruptcy case, stating in part, "The Poonians' actions were morally unacceptable and harmful to society, such that they should not be rewarded with a release of those debts."
Again, the Poonians went to court, appealing the decision by the Supreme Court.
Again, they argued they were "honest but unfortunate," and that's how they found themselves in such debt – a claim shot down in their initial trial. If the argument had succeeded, as it has in some other cases, they may have been relieved of the debt under what is known as "fresh start" principles.
The judge instead called them "rogues who are clearly guilty of transgressions before the bankruptcy," and noted there have been no substantial efforts to pay their debts or maintain "suitable employment."
It's an assessment the appellate court agreed with, noting the Poonians continue to deny their initial misconduct. The judges said there was no basis for saying the first ruling was "founded on palpable error," or "harsh and unduly onerous."
The couple argued the judge should have given more weight to the fresh start principle, but that suggestion too was shut down.
"The bankruptcy process should not be a clearing house for the liquidation of debts irrespective of the circumstances in which they were incurred," the appeal judges said.
Taking these and other considerations into account, they determined there was "no merit in any of the grounds of appeal identified by the appellants," and dismissed the couple's appeal.
CTVNews.ca Top Stories
NEW Who should lead the Liberals? 'None of the above,' poll finds
As questions loom over Prime Minister Justin Trudeau’s leadership, a new Nanos Research poll commissioned for CTV News says a quarter of Canadians say none of the potential candidates appeal to them.
Canada's response to Trump deportation plan a key focus of revived cabinet committee
U.S. president-elect Donald Trump's promise to launch a mass deportation of millions of undocumented people has the Canadian government looking at its own border.
New technology solves mystery of late First World War soldier's flower sent home to Canada
In 1916, Harold Wrong plucked a flower from the fields of Somme, France and tucked it into a letter he mailed home to Toronto. For decades, the type of flower sent remained a mystery.
U.S. election maps: How did 2024 compare to 2020 and 2016?
Though two states have yet to be officially called, the U.S. election map has mostly been settled. How does it compare with the previous two elections?
Canada rent report: What landlords are asking tenants to pay
Average asking rents declined nationally on a year-over-year basis for the first time in more than three years in October, said a report out Thursday.
N.S. school 'deeply sorry' for asking service members not to wear uniforms at Remembrance Day ceremony
An elementary school in the Halifax area has backed away from a request that service members not wear uniforms to the school's Remembrance Day ceremony.
Remembrance Day: What's open and closed in Canada?
While banks and post offices will be closed nationwide on Remembrance Day, shops and businesses could be open depending on where you live in Canada.
BREAKING Judicial recount for Surrey-Guildford confirms B.C. NDP's majority
The B.C. New Democrats have a majority government of 47 seats after a judicial recount in the riding of Surrey-Guildford gave the party's candidate 22 more votes than the provincial Conservatives.
48,584 space heaters recalled in Canada after burn injury in U.S.
Health Canada has announced a recall for electric space heaters over potential fire and burn risks, a notice published Thursday reads.