Industrial Alliance Insurance and Financial Services Inc.applied to the Nova Scotia courts to force bankruptcy registrar Richard Cregan to reverse the decision by trustee Grant Thornton LLP to disallow the $30,000 pension for Frank Anderson, former CEO of the South West Shore Development Authority (SWSDA). The firm also has a $140,000 unsecured claim on the SWSDA "estate". Grant Thornton argued that Industrial Alliance failed to meet claim deadlines.
SWSDA was at its heart an entity comprised of nine municipal units in South Wset Nova Scotia and councilors with those units contacted by SCT were displeased that the Courts might award Anderson the money. "Since it was largely through his actions that SWSDA ended up so much in debt," said one Councilor, "it seems more than ironic that we wold now have to shell out almost $150,000 in money to him.
Anderson was allowed to submit the pension claim as a creditor in exchange for withdrawing another claim for $286,800. The development authority went under last year, owing more than $2.3 million to dozens of unsecured creditors.
The November real estate sale of the last of SWSDA's assets for 5% of assessed value has yet to close escrow and, despite several requests, Grant Thornton has yet to respond to several inquiries by SWSDA members.
Forensic fraud specialists from Ontario have been hired by the province to examine SWSDA's books and sources tell SCT that criminal charges may be laid as a result.
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Comments
I really think if you are a CEO of a company and the company goes bankrupt your pension is gone. Frank Anderson this is you, you led SWSDA into the ditch.
Stand up against Frank,,,,,,,,,,, make a comment here
Yes Frank was the CEO and all you say is true but let us not ever forget nor foregive the elected officials who sat back and allowed it all happen!!! They should lose something also. Frank Anderson should never been allowed to do what he is supposed to have done or not done.The
entire SWADA GANG should be painted with the same brush.
Question is who signed the loan guarantee Why didn't they know who signed that guarantee and for that matter how much of a loan was it. They never did say or find out who signed that loan agreement I wish that council members would just QUIT All this talk about DEVELOPMENT they just are not too SWIFT I might not be able to spell to well BUT I have some common sence
Over the past decade we've had enough sleaze and graft within SWSDA/YAIC confines and SW Shore council backrooms to last a lifetime, and now we're witnessing many of the same culprits catching their second wind.
Is it chutzpah, addictions, or insanity we're dealing with - or a combination of all three?