By RICHARD ROLKE Morning Star Staff Mar 21 2007 Vernon morningstar
Vernon’s former mayor has declared bankruptcy and left city hall wondering if it will get the money it’s owed. The City of Vernon has been notified that Sean Harvey has filed for bankruptcy and, as a creditor, provided with information about the situation. Mayor Wayne Lippert is left questioning if the city will receive the remainder of the money Harvey was supposed to pay as part of his breach of trust sentence. “Our finance department is looking at the legal aspect of it,” he said. Through the sentencing last year, Harvey was ordered to make restitution for the $13,800 in false expense claims generated while mayor. As of Monday, the city had received $6,761.
Federal legislation states that anyone filing for bankruptcy is not released from “any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence.” It also indicates that pursuing bankruptcy does not release an individual from “any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity.” City officials have discussed the situation with the trustee involved in the case, and despite the legislation, steps are being taken to protect the city’s interests. “We will file a proof of claim,” said Kevin Bertles, finance manager. Officials with BDO Dunwoody in Kelowna confirm they are handling the Harvey matter but they would not comment on specifics. Harvey, who resigned as mayor in July 2005 and now lives in Salmon Arm, could not be reached for comment.
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