By: Jassmine Girgis
Case Commented On: Williams (Re), 2025 BCSC 1128 (CanLII)
PDF Version: Disgorgement Orders as Non-Dischargeable Debt
Re Williams, 2025 BCSC 1128, deals with a debtor who, prior to his bankruptcy, was found by the British Columbia Securities Commission (the Commission) to have masterminded a Ponzi scheme. The Commission imposed a penalty on Mr. Williams and ordered him to disgorge a sum of $6.8 million, an obligation from which he later sought release upon applying for a bankruptcy discharge. The issue in this case was whether the Commission’s debt fell into one of the categories of non-dischargeable debts, namely those arising from obtaining property or service by fraudulent misrepresentation or false pretences (s 178(1)(e) of the Bankruptcy and Insolvency Act, RSC 1985, c B-3 (BIA)).