2nd accountant punished in N.L. real estate debacle
A St. John's accountant has been disciplined in connection to the collapse of a development company five years ago that left creditors on the hook for millions of dollars, CBC News has learned.
According to a public notice released Dec. 2 by the organization that regulates accountants in Newfoundland and Labrador, Dave Randell has been fined $500 for his role in the bankruptcy of Myles-Leger, in which more than 100 creditors claimed to be owed $14 million.
He is the second accountant punished in the case, after Harry Kung was disciplined and suspended in 2007.
The Institute of Chartered Accountants of Newfoundland and Labrador spent more than $80,000 investigating the role of the two accountants in the Myles-Leger case.
The institute says Randell didn't do enough when he was told about improper dealings between Myles-Leger and lawyer Bill Parsons.
An audit found that Parsons and his associate Glenn Bursey were directing money that was supposed to pay off mortgages on properties sold by Myles-Leger to the company itself.
Randell told Parsons to go to the law society, then he quit, the institute said.
Eventually a bank complained to the law society, which disbarred Parsons and Bursey in 2005.
The Myles-Leger collapse captivated the St. John's business community. Bill and Randy Clarke owned the company, which through several subsidiaries had been involved in a variety of high-profile developments in the capital city area.
Files at Newfoundland Supreme Court are filled with countless pages of documents concerning the aftermath of the collapse. About 125 creditors have been pursuing about $14 million that Myles-Leger owed when it folded.
Five years later, RCMP are still investigating the case.
Bill Clarke is still in the development business in St. John's.