© AgMedia Inc.
by BETTER FARMING STAFF
After deciding not to contest personal bankruptcy proceedings against him, Ontario’s self-proclaimed ‘Pigeon King’ allowed himself to be declared bankrupt.
Frank Highley, the lawyer representing Arlan Galbraith’s interim receiver, BDO Dunwoody Ltd. informed Justice K.A. Gorman of the former pigeon entrepreneur’s decision in the London Superior Court of Justice in Bankruptcy and Insolvency. Steven Gadbois, lawyer for the defendant stood quietly by during the brief hearing this morning. Galbraith himself was not present.
Today’s bankruptcy hearing comes more than a year and a half after Galbraith placed his company Pigeon King International Inc. in bankruptcy. In November 2008 a creditor filed an application to declare Galbraith personally bankrupt. That lapse of time has angered many creditors. Outside the courtroom, Gadbois said Galbraith informed him of his decision via telephone on Dec. 11.
Fighting the personal bankruptcy proceedings would involve legal and court costs and Galbraith “wanted to avoid these,” so he voluntarily consented to the order, Gadbois says. “It was not a pleasant decision for him, obviously,” says Gadbois.
This is Galbraith’s second personal bankruptcy. In 1981 he received an unconditional discharge following the collapse of a meat business he ran with his brother. At that time he listed assets of $470,000 and liabilities of $410,000.
Gadbois said so much time was needed to reach a decision in Galbraith’s latest bankruptcy because it was necessary to gain access to, and assess, company records that Galbraith surrendered to PKI’s bankruptcy trustee, BDO Dunwoody. At the outset Gadbois had told reporters: “the man’s not bankrupt; of course he should fight it.”
Once the contents of 52 banker boxes, two suitcases and a cardboard filing cabinet were reviewed, “it was determined there was a debt that could not be dealt with appropriately,” Gadbois says.
With the company’s “huge” cash flow, the volume of records is to be expected, he says.
PKI and Galbraith offered pigeon breeding pairs for as much as $500 and bought back offspring for up to $50 each. The company’s June 2008 collapse left debts estimated to total nearly $39 million and nearly 1,000 breeders in Canada and the United States with thousands of worthless pigeons.
“It’s really a tragic situation for everybody involved,” Gadbois says.
James Wiersma of Fisherville, Ontario, one of four creditor-appointed inspectors in the PKI company bankruptcy, filed an application to declare Galbraith personally bankrupt in November 2008.
Gadbois says the bankruptcy puts to rest Wiersma’s claim against Galbraith as well as civil actions filed by Robert Siebring, who operated pigeon holding barns for Galbraith and his company near Palmerston, Rossburn, Manitoba-based Fred Clement, who leased barns to Galbraith and PKI, and the landlord of Galbraith’s former office in Waterloo.
Galbraith’s property near Cochrane appears to be his client’s only major asset, Gadbois says.
The debt “is going to exceed the amount available by a significant component,” he says.
Highley notes the bankruptcy takes effect immediately and transfers control of Galbraith’s personal assets to BDO Dunwoody.
Highley says payments to creditors from Galbraith’s assets will reflect the size of their claim.
Susan Taves, senior vice president of BDO Dunwoody, could not be immediately reached for comment. BF
PKI summary
Comments
make sure all his bank records are checked
And an investigation into the Waterloo Regional Police, the Federal Competition, the BBB and the local media for that matter.!!!
dave - CBNow
CrimeBustersNow
EXCERPT: "As for the police investigation, it is “ongoing,” said Sgt. Rob Zensner of the Waterloo Regional Police fraud division. “Some investigations just take time,” he said, noting that police have had to review as many as 60,000 documents in the case."
Sgt. Rob Zensner is the same officer who, with his "blinders firmly in place" and "willfully blind" rejected the evidence I presented to him, backed up by professionals and the Attorney General of Iowa and instead appeared on national TV stating he could find nothing criminal in what we maintain is an obvious Ponzi scheme thereby allowing it to continue its exponential growth until ..... "police have had to review as many as 60,000 documents in the case.".......... No kidding!!!
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As "willfully blind" facilitators, police and government authorities created the further massive problems; that of the 10s of millions more in losses from August 2007 until June 17 2008 and at least two farmers on suicide watch as a result of their callous, narcissistic attitude toward alleged victims of prima facie pyramid Ponzi schemes.
The Fraud Squad under senior officer Zensner sent out this email to victims, potential victims and the concerned citizens that were offering assistance to stop the PKI fraud.
----- Original Message -----
From: Fraud Branch
To: gatoraid@sympatico.ca
Sent: January 30, 2008 8:09 AM
Subject: RE: Pigeon King International
Thanks for the information. Unfortunately the best weapon we have is public knowledge. Please let all your friends know about this. Although it is not a crime in Canada to operate this scheme it does not make it right. You may also want to complain to your member of parliament as to why it is allowed in Canada.
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Talk about outright misleading statements (basically the same tactics employed by fraudsters) or at best, "willfully blind" "buck passing.".... "The best weapon we have" is the LAW. It can stop crooks "dead in their tracks:" Just like a shoplifter or a bank robber. Why do crooks of pyramid/Ponzi schemes and fraud get preferential treatment through obvious police and political misleading information and bias?
dave - CBNow
please keep us up to date when his prop is going up for auction and the house gets listed, interest to see if ALL his prop is in the sale or got stashed away
Betterfarming seems to be the only media outlet that is covering this story. Please keep up the good work and report as much information as you can. Main stream media may have forgotten this story but I can assure you that for us who were unsuspectedly caught up in this scheme, we certainly have NOT.
He took advantage exclusively of farmers who were inexperienced with pigeons and of a trusting nature. Even novice pigeon fanciers would know that those mixed breed birds that he was selling for hundreds of dollars were basically worthless. He deliberately and knowingly sold a worthless product for much much more than its realistic value.
His major asset is only worth an estimated 500 000$ (at the highest) ... There has to be some money somewhere.
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