Purdy Crawford Rescues the Market

The capitalist state rides to the rescue with a corporate governance model for the credit market in Canada. Don't here no crying about market interference by the state. Nope. Can't over all the applause from the vested interests.

Another nail in the coffin of the myth of the free market. It's a market and it ain't free, it's controlled by them in power. Despite all their monetarist ideology when the crisis hits they run to their nanny state.

It began in August when Quebec based National Bank, not the Central Bank, bought back its loans and shored up its Mutual Fund Altamira. Because investors, consumers, you and me, are ignorant of the market risk of some their investments.

National Bank's news release on behalf of Altamira funds may have been most educational from the investor's perspective. The bank noted that Altamira money market funds offer no assurances they can maintain their net asset value and protect against losses. It also pointed out that money market funds are not insured by Canada Deposit Insurance Corp., as are high-interest savings accounts and guaranteed investment certificates.

In shoring up the money market franchise for the mutual fund industry, National Bank has also highlighted the fact that these funds are not risk-free. This brings us back to high-interest accounts, a corner of the financial marketplace where there happens to be some stiff competition these days. The rates are higher than money market funds, fees are non-existent and federal or provincial deposit insurance offers a safety net. What a deal.

It was followed this week by the Bank of Canada joining with the private/public investment and banking sector to develop a bail out plan for institutions.

And when they say they are protecting investors ferget about it. They are protecting their investment. They are speaking of commercial investors like our pention funds and private equity as well as mutual funds.

After all the Ruling Class takes care of its own, and their investments.

A plan to rescue about $35-billion of illiquid asset-backed commercial paper moved a step forward yesterday as holders of the debt formed a committee to oversee how the proposed restructuring would happen.

And, in another sign that Canadian money markets may be inching towards stability, the Bank of Canada yesterday announced it was restoring standard collateral conditions for providing liquidity to financial institutions on an overnight basis. "While money markets continue to experience difficulties, there has been significant progress in the functioning of the overnight market," the bank said in a statement.

During the height of the recent stock-market turmoil in mid-August, the bank widened the kinds of collateral it would accept against lending to include such instruments as provincial securities and commercial paper, as well as the standard government of Canada paper.

Meanwhile, the committee overseeing the commercial paper rescue plan will be chaired by Osler, Hoskin & Harcourt lawyer Purdy Crawford and will include representatives of Canaccord Capital Corp., Canada Post, National Bank Financial and the Caisse de depot et placement du Quebec.

"Our investor committee will be looking to implement a solution that addresses the best interests of investors generally, and at the same time allows for a successful restructuring and a return to market stability for these investments," Mr. Crawford said in a statement.

Under the so-called "Montreal Proposal" troubled asset-backed commercial paper (ABCP) would be converted into longer-term debt with maturities stretching out in some cases several years into the future as a way to improve chances that investors will get their money back. Details of how the conversion will happen will likely be sorted out by this new committee.

Canadian investors stuck with illiquid asset-backed commercial paper should hang on to their investments while an investor committee attempts to find a solution that will get their money back, said the head of a committee overseeing a rescue plan.

``Hopefully if everybody stays cool and somebody doesn't start pulling plugs, this thing will work out without them having any losses,'' Purdy Crawford, who was named yesterday to lead the committee, said in a telephone interview today. ``If everybody stays cool, that's the key.''

A Pan Canadian Committee Chaired by Mr. Purdy Crawford has been formed today to oversee the proposed structuring process of the Third Party ABCP. This Committee, which includes investors who were signatories to the Montreal Proposal plus other significant holders, brings a broad cross section of investors with a national perspective, relevant experience and associations with each of private business, institutional investors, government agencies and crown corporations. Comprising this Investor Committee are now:

<< - Mr. John Crichton, President and Chief Executive Officer, NAV CANADA. - Mr. Alban D'Amours, President and Chief Executive Officer, Desjardins Group; - Mr. Gordon J. Fyfe, President and Chief Executive Officer, PSP Investments; - Mr. Doug Greaves, Vice President Pension Fund and Chief Investment Officer, Canada Post; - Mr. Rowland Kelly, Interim CEO, Credit Union Central of British Columbia, representing Credit Union Central of Canada; - Ms. Karen Kinsley, President and Chief Executive Officer, Canada Mortgage and Housing Corporation; - Mr. Mark Maybank, President & Chief Operating Officer, Canaccord Capital Corporation (Canadian Operating Subsidiary); - Mr. Dave Mowat, President and Chief Executive Officer, ATB Financial; - Mr. Ricardo Pascoe, Co-President and Co-Chief Executive Officer, National Bank Financial Group; - Mr. David G. Patterson, Chair and Chief Executive Officer, Northwater Capital Management; - Mr. Henri-Paul Rousseau, President and Chief Executive Officer, Caisse de dépôt et placement du Québec; - Mr. Jim Scopick, President and Chief Executive Officer, Credit Union

And Purdy Crawford is a player. After all he founded the Atlantic Institute for Market Studies (AIMS), which is the East coast clone of the right wing think tank the Fraser Institute.

Purdy is an excellent example of the modern member of the capitalist ruling class. They secure their positions of power through interlocking boards of directorships. He adapted his corporations during the mean and lean eighties and then in the booming nineties to create large cap companies capable of predatory take overs or become subject of take overs themselves. He adapted corporations into a new tax shelter; Income Trusts.

He recognized the current condition of capitalism; mergers and acquisitions in the age of modern financial globalization. This resulted in large scale accumulation in a single company, selling off parts of itself to global flows of capital.

It resulted in the selling off of Canadian companies to foreign investors in order to mass enough capital to take over someone else, or be gobbled up in the process if your gamble fails as was the case with Inco ,which Purdy was a director of .

And as he did with Imperial Tobacco severing it from Imasco. Which was finally bought out by its parent, the notorious cigarette smuggling BAT.

As a spokesperson for big tobacco he defended targeted marketing at youth. This qualifies him to speak on; Ethics, Values and Business Success - Purdy Crawford (May 11, 2006)

As a securities adviser he promotes his ideal of market consolidation with a single Securities commission in Canada. In a way this melt down in the market has proven his point and in rescuing the paper market will lessen the objections to it by provincial mandarins.

Does it all really matter as far as small investors are concerned? My hunch is, not very much. Of course we would all welcome a lean, mean federal commission spearheaded by a home-grown Eliot Spitzer to keep Bay Street in line. However, that is far from what Mr. Crawford and some of the other reformers have in mind. Their blueprint calls for another bureaucratic restructuring rather than a caped crusader.

Take a look at the Crawford Panel’s proposals. We are to have a new agency composed of 13 provincial and federal representatives, each having a single, equal vote, which would approve all the rules and select the regulators. In other words, the existing 13 commissions would be gathered under one roof and given equal power. The mind boggles. Can you imagine Ontario, Quebec, and Alberta all being consistently on the short end of 7 to 6 votes?

Our Global Capital Markets Plan has four key building blocks.

• First of all, enhancing regulatory efficiency by creating a common securities regulator that is principles-based, proportionate and tailored to the unique makeup of Canada’s capital markets.

• Secondly, strengthening market integrity by enhancing investor protection, pursuing the highest standards of governance and enforcing our laws more vigorously.

• Thirdly, by creating greater opportunity for business and investors by pursuing free trade in securities with the United States and other Group of Seven (G7) countries. And I’ll come back to that in a moment about where that is at in terms of our discussions internationally.

• And fourth, improving investor information by promoting financial literacy, particularly for young Canadians, by developing new financial education materials.

So these four building blocks make up the foundation of our Capital Markets Plan. None are mutually exclusive. They all support one another, and I would like to take the next few minutes to focus on one building block in particular, and that is strengthening market integrity, which begins with enforcement.

With Purdy's connections to Montreal the city and the exchange, as well as having a home there and being on the Board of McGill. Gee where do you think they would put a national Securities commission.

Canadian Securities Commission,
Calgary, Alta (or Montréal, PQ?)

PORTRAIT OF A CAPITALIST

Purdy Crawford COUNSEL Toronto Office Email: pcrawford@osler.com Tel: (416) 862-5869 Year of Call Fax: (416) 862-666 Ontario 1958 Nova Scotia 1

Purdy is a native of Five Islands, Nova Scotia, and a graduate of Mount Allison University, Dalhousie Law School and Harvard Law School. He pursued his legal career with Osler, Hoskin & Harcourt LLP, practising primarily in the corporate/commercial area. He left Osler to join Imasco as C.E.O. in 1985 - retiring as C.E.O. in 1995 but continuing as non-executive Chairman of Imasco Limited, CT Financial Services Inc. and Canada Trustco Mortgage Company until February 1, 2000.

Purdy rejoined Osler as Counsel in March 2000. He sits on the boards of several large Canadian and U.S. public companies. Purdy is Chair of the Five-Year Review Committee, appointed to review securities legislation in Ontario, and former Chair of the Securities Industry Committee on Analyst Standards. In 1996 he became an Officer of the Order of Canada. He was inducted into the Business Hall of Fame of Nova Scotia in 1997 and became a Fellow of the Institute of Corporate Directors in 1999. In 2000 he was inducted into the Canadian Business Hall of Fame and named Ivey Business Leader of the Year. He is Chancellor Emeritus of Mount Allison University.

He was the Chairman of the Atlantic Institute for Market Studies (AIMS), Chancellor of Mount Allison University, and Chairman of AT&T Canada Corporation. He was a corporate director for SEAMARK Asset Management Ltd. and is currently a member of the board of the Canadian National Railway Company. He is a Governor of the University of Waterloo.

Timeline: Purdy Crawford

Toronto
Born Nov. 7, 1931, in Five Islands, Nova Scotia
Allstream chair, corporate governance advocate

1958: Starts practising at law firm Osler, Hoskin & Harcourt; specializes in corporate-commercial area. Becomes senior partner in 1970.

1985: Joins tobacco giant Imasco Ltd. as president and COO. Is named CEO in 1986. Transforms it into a diversified holding company.

1995: Retires as Imasco CEO, but continues as non-executive chair until February 2000, when Imasco is bought by British American Tobacco.

G7 Summit, Halifax, Purdy Crawford, co-chairman of the summit sponsorship committee.

1999: Joins AT&T Canada as a director. Becomes chairman a year later. Oversees its transformation into debt-free Allstream.

2000: Rejoins Oslers as counsel. Chairs Ontario minister of finance's five year review committee, which examines securities regulations.

He is chairman of the Ontario Government's Crawford Panel on a Single Canadian Securities Regulator.

Director MTS/Allstream

Purdy Crawford Named Conference Board's 2003 Honorary Associate

The CPP Investment Board has hired Toronto lawyer Purdy Crawford as an external adviser on conflicts of interest and ethical conduct, providing a new contact for whistleblowers.

John MacNaughton, chief executive officer of the CPP Investment Board, said yesterday no other federal Crown Corporation has created a similar position with an outside, independent person in the job.

The CPP Investment Board was formed in 1997 to manage the assets of the Canada Pension Plan.

It is currently responsible for overseeing $31-billion in equity, real estate and infrastructure assets, and will also assume control of a further $35-billion in bonds and cash investments over the next few years.

Clearwater Seafoods Income Fund, the Board of Directors of CS ManPar Inc. (the managing partner of Clearwater Seafoods Limited Partnership),

CRAWFORD, Purdy, O.C., Q.C., B.A., LL.B., LL.M.; b. Five Islands, N.S. 1931; e. Mt. Allison Univ. B.A. 1952; Dalhousie Univ. LL.B. 1955; Harvard Law Sch. LL.M. 1956;

Member of the Board of AT&T Canada
Member of the Board of Avenor
Member of the Board of Camco Inc.
Member of the Board of Canada Trustco Mortgage Company
Member of the Board of Canadian National Railway
Member of the Board of CT Financial Services Inc.
Member of the Board of Dominion Textile Inc.
Member of the Board of Foot Locker
Member of the Board of Imasco Limited (as Chairman, 1985-2000)
Member of the Board of Inco Limited
Member of the Board of Maple Leaf Foods (1973-)
Member of the Board of Nova Scotia Power
Member of the Board of Petro-Canada
Member of the Board of Trinova Corporation
Member of the Board of Woolworth (-1997)

Governor Emeritus, McGill Univ.; Chancellor, Mount Allison Univ.; called to Bar of N.S. 1956, of Ont. 1958; student with Osler Hoskin & Harcourt 1956, Assoc. Lawyer 1958, Partner 1962, Sr. Partner 1970-85; cr. Q.C. 1968; Special Lectr. Osgoode Hall Law Sch. 1964-68, Univ. of Toronto Law Sch. 1969-71, Bar Admission Course 1969-72;

Co.-Secy. Atty. Gen.'s Comte. on Securities Leg. 1964-65; Chrmn. Ont. Taxation Sub-sec., Cdn. Bar Assn. 1966-68; Treas. Nat. Taxation Sec. 1968-70; Past mem. various comtes. on taxation and of Bd. Govs. Cdn. Tax Foundation 1970-72; Cdn. Inst. of Ch. Accts. Special Comm. to Examine Role of Auditor 1977-78; Accounting Rsch. Adv. Bd. 1977-79;

Chrmn. & C.E.O., Imasco Ltd. 1985-95;

Officer, Order of Canada 1996;

United Church;

recreations: bicycling, golf, skiing;

Canada's National Ballet School, Honorary Circle Members

Shannon School of Business

The National Centre for Business Law UBC

Canada's Outstanding CEO of the Year™ Advisory Board

Canadian Institute of Chartered Accountants Advisory Board

Board Member; Dalhousie University, McGill, University of Western Ontario, UPEI.

Clubs: Mount Bruno Golf; Parrsboro Golf (N.S.); Mount Royal; Forest & Stream; Granite; Toronto; Devil's Pulpit Golf & Country; York Downs Golf & Country; Caledon Ski; The Club Pelican Bay (Florida);

Homes: Five Islands, N.S. (summer) Belfountain, Ont., Toronto, Ont. and Westmount, Que.;

Office: Toronto, Ont.

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I want to thank Purdy Crawford for his introduction. Purdy is truly a great Canadian. I speak for a whole generation of leaders in many different spheres across Canada – who would say that Purdy Crawford made a difference in their lives. If you had to choose one role model, Purdy Crawford would be, for many of us, our first choice.

Ed Clark, President & CEO, TD Bank Financial Group
Remarks at the 2007 Mount Allison University Convocation.

Of course for workers, Purdy is less of a role model, as he sits on the board of CN. No doubt in part it was thanks to his government connections that helped push the Federal Government to legislate away CN workers right to strike this spring.
So explain to the CN workers about how E. Hunter Harrison's compensation made off their backs, is judged 'equitable'.

65 Means Freedom to Start a Whole New Career - March 15, 2006

Then there's Purdy Crawford. At 74, he serves on several corporate boards and is currently heading the initiative aimed at creating a single national securities regulator.

"I guess I'll slowly retire as I feel less energetic, but retirement is not the way I think about it," says Mr. Crawford, the former chief executive officer of Imasco Ltd.

Canadian workers should prepare to work beyond 65 while Purdy and pals use their pension funds for capital investment and promote extending the age of retirement.

Indeed, on a superficial level the notion of "holding corporations accountable" must seem rather appealing to a relatively broad cross-section of society, including many social and community advocates who have jumped on the corporate governance bandwagon. The language of "social responsibility" is often invoked in discussions of governance reform. Those calling for tighter control over corporate managers are often called "activists." But to whom are they asking that corporate managers be held accountable? And on what criteria? These are important questions not always addressed by those, including those on the left, beating the drum for new governance standards.

While discussing the high falutin ideals of directors control over the corporation, and its impact on CEO compensation he leaves out the need for more civil society representation on the board, from union elected directors to environmentalists, consumer adovcates, non-lawyers, etc.

Early on, the boards I was on were public boards of companies I was the lawyer for. That's a no-no today, and properly so. Boards then, depending on the circumstances, were quite the creation of the CEO. You still get quite a bit of that in the US, but here that shouldn't happen very much anymore. At least it doesn't happen where I'm involved.

Over the last eight or nine years, boards have taken much more control of companies, and CEOs are much more beholden to boards.

When I joined Imasco, I thought I'd been around so I didn't have a lot to learn. That was true of a lot of areas, but it wasn't true of operations. It was an exciting learning curve to understand how Shoppers Drug Mart operates and start adding value.

The same was true with Imperial Tobacco. I became a great believer in great operators. Business schools pay a lot of attention to strategy, but they don't pay enough attention to execution.

I went in at Imasco to become the CEO. I wouldn't have gone to become a lawyer. I might have done that today, by the way--the legal general counsel office reporting to the CEO has become much more significant. The remuneration is comparable to a fairly outstanding lawyer in a law firm. There are no pension plans with a law firm.

"The importance of good governance for confidence in Canadian capital markets" by Purdy Crawford

In the wave of corporate scandals that followed the burst of the bubble on the stock market, confidence in the business community has been badly shaken across North America. And in the subsequent wave of recriminations, business has been confronted with unprecedented scrutiny from government and regulators. Business leaders have been forced to ask about the nature, purpose and value of their enterprises beyond their bottom lines. Purdy Crawford, former chairman of Imasco and Canada Trust, was an advocate of corporate governance long before it became a flavour of the month. He looks beyond the recommendations of the Bennett- Broadbent Report and the Saucier Report in Canada, as well as the Higgs Report in the UK, and offers some simple rules for corporate governance, particularly for enhancing the independence of corporate chairs and directors.

BOARDS OF DIRECTORS - MONITORING FOR
ETHICAL STANDARDS
Purdy Crawford
Counsel to Osler, Hoskin & Harcourt LLP
Thursday October 21st, 2004
Purdy Crawford addressed the
October luncheon on the topic of
fiduciary governance. Mr. Crawford
used the Globe & Mail published
rankings of Boards of Directors
of companies that comprised
Canada’s benchmark S&P/TSX
composite index as the springboard
for his analysis on certain problems
in governance rating systems. He identified the inherent
weaknesses of this “tick the box” type approach to measuring
corporate governance and expressed his personal belief
that good long-term financial performance, or an outstanding
C.E.O., should rank higher than any ranking of the
Board of Directors. Mr. Crawford went on to talk of the
distinction between what he named fiduciary governance
(governance designed to police the integrity of the firm)
and value creating governance, and was of the view that
Canadian corporations have performed far better than those
in the US in terms of the former. Despite the current trend to
regulating fiduciary governance, Mr. Crawford expressed a
firm belief in the importance of sound leadership and
discussed the ethics and integrity program at Allstream
Corporation as an example of a solid and effective
approach. Mr. Crawford concluded his remarks by
emphasising that a culture of ethics and integrity is critical
to market credibility and maintaining confidence in the
leadership of the organization.

Then, in 2002, in the aftershock of Enron, and following investor demands to tighten up shoddy financial reporting practices, US Congress introduced the Sarbanes-Oxley Act and Canadian regulators later responded with their own set of rules. As John Carchrae, CA, chief accountant at the Ontario Securities Commission, explains, this brought greater prominence to the COSO and COCO frameworks which, although already in place, were not yet in widespread use. (For more details, see “Internal control in evolution” below.)

Purdy Crawford, who was president and CEO of Imasco Ltd. from 1986 to 1995 and a board member of several large public and private companies, is one of those who witnessed the changes in the internal auditor’s role first-hand. More than 10 years ago, he says, “the internal audit function in big companies tended to be sleepy. They were laid back, they were not a strong group.”

Eight or nine years ago things started to change, says Crawford, who is presently counsel at Osler, Hoskin & Harcourt LLP and is a member of the Canadian Business Hall of Fame. (He also sits on Manitoba Telecom Services Inc.’s board.) CEOs at the helm of corporate giants like General Electric began recruiting “swat teams” of talented internal auditors to be the eyes and ears of the company, uncovering weaknesses and helping management devise solutions to improve processes. “Today, SOX and proposed Canadian-equivalent requirements have certainly underlined the importance of the internal audit function,” he says. “One big role of internal auditing is to ... help external consultants or financial people to set up control mechanisms if they don’t exist or if they need to be strengthened.”

Not only are highly regarded lawyers such as Purdy Crawford, Q.C., and Jean Fraser, of Osler, Hoskin & Harcourt LLP, Garth Girvan at McCarthy Tétrault, and Les Viner at Torys reading about leadership these days, they are thinking about it, talking about it and taking action. Purdy Crawford, who has rejoined Oslers after most recently serving as Chairman of Canada Trust Financial Services and non-executive Chairman of Imasco, says even before he stopped practising law in 1985 to go to Imasco, he found the Harvard Business Review more interesting than the Harvard Law Review. Les Viner debates theories from the latest management literature. And James Riley at Ogilvy Renault extracts lessons in organizational growth, competition, and strategy from John Keegan’s The Face of Battle and other such military classics. They articulate such psycho-management terms as 360° feedback, EQ, and the importance of “vision”. What has the world come to?! These are supposed to be hardened, no-nonsense corporate lawyers.

“There is a revolution brewing,” exclaimed Tom Peters in 1989. That revolution, the Information/Technology Age, has since arrived and has far exceeded Peters’ predictions in terms of how massively and pervasively it would impact on the rules of economic wealth and growth, what competitive advantage is, and how people live and work. There is another revolution brewing today: in professional services. As global legal services converge and consolidate, as multidisciplinary practices enter the market, as corporate mergers escalate causing even more consolidation in the business client base, and more and more work is transacted cross-border, Canadian law firms find themselves in a difficult position. By all accounts, business is booming.

Of course not everyone is so enamored with Mr. Purdy's defense of corporate Canada when it comes to white collar crime.

---

ASC Chairman Bill Rice and Other Securities Regulators & Experts
Ignore Today's Canadian Press-Decima Poll

Add Alberta Securities Commission Chairman Bill Rice to the list of Canada's securities regulators and legal experts trying to convince us there are few high profile white collar crimes in Canada and that Canadians are less aggressive in the pursuit of law and order than Americans. Bill Rice, David Brown (former OSC Chairman and Current Chairman of the RCMP Restructuring Task Force) , David Wilson (current OSC Chairman) and Purdy Crawford (Bay Street securities lawyer and recognized architect of Canada's current securities enforcement system) are out of sync with the knowledge and standards set by Canadian society, as they are expressed in today's Toronto Star - Canadian Press report on the Canadian Press - Decima poll of Canadian attitudes towards the U.S. Conrad Black verdict and his expected jail sentencing.
"The survey of more than 1,000 Canadians found that only 8 per cent think the American jury was too severe in convicting Black on four of 11 charges earlier this month. Forty-eight per cent say the jury got it about right and 22 per cent said the verdict was not severe enough.
"Decima found that most respondents  69 per cent  would like Black to see jail time in addition to paying a fine. Just 10 per cent believed a fine is ample punishment. Some 29 per cent felt he should be sentenced to 10 years or more in prison, with another 40 per cent feeling that one to nine years would suffice."

Meanwhile, this is what Bill Rice, David Brown, David Wilson and Purdy Crawford have had to say about white collar crime in Canada:
"There's always room to improve, admits Alberta Securities Commission chairman Bill Rice. That includes changing the perception that Canada doesn't aggressively pursue rogue executives. Rice, a former securities lawyer, feels Canada too often is an easy target. Without a trial to match the visibility of Enron or WorldCom, regulators here come up short by comparison. The reality, he says, is that aggressive, U.S-style punitive action isn't the Canadian way when it comes to stock market scandals. "There is an extreme cultural difference in our approach to criminal law enforcement. We certainly don't send people away for 25 years for these kinds of things. "I happen to think our public would be horrified by it."
(Calgary Herald, "Business Scandals dog Canadian markets," dated May 28, 2007)


"David Brown, past chair of the OSC, said, "Canada's come a long way ... I think all of the pieces are in place now. We all need to give it a little more time." And he added that the lack of high-profile convictions in Canada could have something to do with a lack of high-profile crimes. "We don't seem to have seen here in Canada the high-profile failures that they have in the U.S.," he said." (Toronto Star, "Soft on White Collar Crime," May 29, 2006)



"But a small minority of firms and individuals prey on investors. Unfortunately, this small group has a disproportionate impact on the perception of Canadas capital markets. I understand the challenge of trying to close a gap between perception and reality." (OSC Chairman David Wilson Speech, "A Common Objective: Strong Investor Protection," April 26, 2007)


"Purdy Crawford, a lawyer who headed a commission that urged the creation of a single national securities regulator, said he was disappointed Canada didn't take the initiative to prosecute Black before he went to trial in the United States. "The best thing that ever could have happened to him would have been to have been prosecuted here," said Crawford, although he added the U.S. authorities' "no holds barred" approaches are also overzealous to a fault."
(Canadian Business Online,"Securities Enforcement Still Lacks Teeth Experts Say," July 17, 2007)
Canadians are well aware that economic crime is a serious problem in Canada, so the efforts of Bill Rice, David Brown, David Wilson and Purdy Crawford to coverup this fact are falling on deaf ears. The longstanding efforts of these men to coverup white collar crime and to mitigate Canada's prosecutorial response to it can only be interpreted to be a breach of trust to the Canadian people.

In a recent survey (EKOS Survey, Wave 3, 2005-2006), Canadians said economic crime was the most serious problem in Canada at 67%, gang violence rated second at 66%, and gun crime and organized crime both rated third at 54%. Terrorism rated last at 14%. When asked about what type of crimes Canadians were personally more concerned about, those polled rated economic crime first at 68%, gang violence second at 59%, gun crime third at 51%, property crime forth at 48%. Terrorism rated last at 30%.

(RCMP Integrated Market Enforcement Teams Accountability Framework - Fiscal Year Ending March 31, 2006)

On April 26, 2007, the National Pensioners & Senior Citizens Federation (450 clubs and chapters with 1,000,000 members), the United Senior Citizens of Ontario (1000 clubs with 300,000 members) and the Small Investors Protection Association jointly requested a national inquiry on the malfunctioning of Canada's securities and accounting regulation and white collar crime enforcement system.



Diane Urquhart

Independent Analyst

See:

Sub Prime Exploitation

Canadian Banks and The Great Depression

Wall Street Deja Vu

Housing Crash the New S&L Crisis

US Housing Market Crash

The Carbon Market Myth

Are Income Trusts A Ponzi Scheme

Scandal in the Alberta Stock Exchange

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B&D CHILD ABUSE

Legal claims shed light on founder of faith group tied to Amy Coney Barrett

Stephanie Kirchgaessner US Investigations Correspondent
Mon, June 6, 2022

Photograph: Barbara Allison/AP

The founder of the People of Praise, a secretive charismatic Christian group that counts supreme court justice Amy Coney Barrett as a member, was described in a sworn affidavit filed in the 1990s as exerting almost total control over one of the group’s female members, including making all decisions about her finances and dating relationships.

The court documents also described alleged instances of a sexualized atmosphere in the home of the founder, Kevin Ranaghan, and his wife, Dorothy Ranaghan.

The description of the Ranaghans and accusations involving their intimate behavior were contained in a 1993 proceeding in which a woman, Cynthia Carnick, said that she did not want her five minor children to have visitations with their father, John Roger Carnick, who was then a member of the People of Praise, in the Ranaghan household or in their presence, because she believed it was not in her children’s “best interest”. Cynthia Carnick also described inappropriate incidents involving the couple and the Ranaghan children. The matter was eventually settled between the parties.

Barrett, 50, lived with Dorothy and Kevin Ranaghan in their nine-bedroom South Bend, Indiana, home while she attended law school, according to public records. The justice – who was then known as Amy Coney – graduated from Notre Dame Law School in 1997 and two years later married her husband, Jesse Barrett, who also appears to have lived in the Ranaghan household. There is no indication that Amy Coney Barrett lived in the house at the time when the Carnick children were visiting or witnessed any of the alleged behavior described in the court documents.

The examination of the People of Praise’s history and attitude towards women comes as a majority of the supreme court – including Barrett – appear poised to reverse Roe v Wade, the landmark 1973 ruling that made abortion legal across the US.

Cynthia Carnick stated in the documents that she had witnessed Dorothy Ranaghan tie the arms and legs of two of the Ranaghans’ daughters – who were three and five at the time the incidents were allegedly witnessed – to their crib with a necktie. She also said that the Ranaghans allegedly practiced “sexual displays” in front of their children and other adults, such as Dorothy Ranaghan lying with her clothes on and “rocking” on top of Kevin Ranaghan in their TV room.

Cynthia Carnick – who no longer uses Carnick as her last name – declined to comment but said that she stood by the statement she made at the time.

In an affidavit that supported Cynthia Carnick’s written statement, a woman named Colette Humphrey said she had lived with Kevin and Dorothy Ranaghan from 1973 to 1978, when she was a member of the People of Praise, and confirmed she had witnessed incidents of inappropriate sexual expression.

Humphrey also wrote in her statement: “When I was part of the People of Praise I was in full life submission to Kevin Ranaghan, under full obedience to him and he exercised this authority over most areas of my life. For example, we were ‘in common’ financially, which meant that I had to hand over my paycheck to Kevin Ranaghan and he would decide on how that paycheck would be used. Kevin Ranaghan controlled my dating relationships, deciding who and when I should date.”

Humphrey – who now uses a different surname – did not respond to a request for comment left at her residence.

A third woman, Susan Reynolds, said in a sworn statement that she lived in the Ranaghan household, and that she had at one point been “shocked” to hear that Kevin Ranaghan sometimes showered with two of his daughters, who were ten or eleven at the time. She said in her statement she was later told by Dorothy Ranaghan that Kevin had “decided to quit showering with them” after Reynolds had questioned Dorothy about the practice.

The Ranaghans did not file any affidavits in connection to the 1993 proceeding, to which they were not a party.

Dorothy Ranaghan declined to comment to the Guardian. Kevin Ranaghan said: “These allegations are nearly three decades old, outlandish, and completely without merit. We have a loving and affectionate marriage of 55 years and have welcomed dozens of people into our home as part of our religious faith and commitment to service to God.”

A spokesperson representing the Ranaghans sent an emailed statement to the Guardian on behalf of the couple’s six adult children. It said they were “insulted by false and misleading statements about our childhood relationships with our parents from decades ago”. “We are part of a loving family and bringing these preposterous claims up now is hurtful and irresponsible.”

People of Praise said in a statement: “Since 1967 Kevin and Dorothy Ranaghan have been known and respected for their tireless work sharing the free gift of the Holy Spirit with hundreds of thousands of people around the world. We are proud that they are members and leaders of the People of Praise.”

The claims about the Ranaghans’ behavior and Kevin Ranaghans’ alleged control over at least one former member of People of Praise is coming to light two years after the Guardian first reported that the group had hired a law firm to conduct an “independent” investigation into decades-old claims of sexual abuse against minors by some members of the Christian faith group.

Since then, at least one alleged victim who cooperated with the investigation has been told that the inquiry into sexual abuse claims by the law firm of Quinn Emanuel Urquhart & Sullivan has been concluded, but that a written report of its findings would not be released to alleged victims or to the public.

When one alleged victim of sexual abuse, who spoke to the Guardian but asked not to be named, asked about the investigation into her own case, lawyer Diane Doolittle of Quinn Emanuel allegedly told her that at least some of the individuals who had been interviewed about the allegations “didn’t recall the details” and that it had been “difficult” to get information.

The South Bend-based group is a covenanted community, which means that members have entered a “covenant commitment” to live together – sometimes families and single members can live in a single household – and are expected to share portions of their income and regularly attend hours-long private prayer meetings, which can include exorcisms and speaking in tongues. The group has about 1,700 members, is mostly Catholic but is open to all Christians, and espouses conservative views on gender. It opposes same-sex marriage and only men can serve on its board of governors or as coordinators, who lead different branches of the community.

The Washington Post reported in 2020 that a People of Praise 2010 directory showed Barrett served as a “handmaid”, a female adviser to other female members. Barrett also served on the Trinity Schools board, whose members must belong to People of Praise, from 2015 to 2017, at a time when the schools effectively barred admission to children of same-sex parents and – according to the AP – “made it plain that openly gay and lesbian teachers weren’t welcome in the classroom”.

Doolittle did not respond to an emailed request for comment. People of Praise said in a statement: “The independent review by Quinn Emmanuel was concluded more than a year ago, and meetings regarding the review have taken place.”

The Guardian sought a comment from Amy Coney Barrett’s chambers through the supreme court press office, but did not receive a response.

In June 2021, four victims of alleged sexual or physical abuse in the People of Praise published an open letter in the South Bend Tribune calling for reforms within the faith group. The suggested reforms included public acknowledgment that there had been a “systemic failure to protect People of Praise children from abuse”, public naming of all individuals who have been “credibly accused of abuse” or “concealing abuse within People of Praise or its schools”, and placing an equal number of women in the highest leadership positions in the group, and giving them an “equal vote in all of the group’s decisions”. The letter noted that the Catholic church has publicly named individuals who have credibly been accused of abuse.

Barrett, who is Catholic, has never publicly been asked about her membership in People of Praise, which first came to light in a New York Times article in 2017, after Barrett, a former law professor at Notre Dame, was nominated by Donald Trump to serve as a judge on the US court of appeal for the seventh circuit. She was confirmed and then later, in 2020, was nominated and confirmed to serve on the supreme court after the death of Ruth Bader Ginsburg.

Barrett has said that her religious convictions, including her previously stated views opposing Roe v Wade, had no bearing on her role as a judge and would not affect her impartiality.

The justice’s involvement in People of Praise became known publicly in 2017 only after one former member, Kevin Connolly, said he brought the story to the New York Times. He did so, he told the Guardian, because he believed it was important for the public to be aware of and understand her affiliation with the group. He was also one of the four authors of the open letter sent to the South Bend Tribune.

Connolly, who is the brother of the People of Praise’s chief spokesperson, Sean Connolly, told the Washington Post in 2021 that his father, who was then a member of People of Praise, was violent and once kicked him in the face when he was 10, leaving him with a black eye.

Connolly came forward, he said, after he heard of several other incidents of physical abuse among his friends growing up. Neither Connolly’s father nor his brother responded to the Post’s questions at the time the alleged abuse was reported in the Washington Post.

“Growing up in the People of Praise, I knew that they held beliefs that would be extremists to the vast majority of practicing Catholics, including on gay rights and women’s rights. I looked at the number of people living in those states covered by the seventh circuit court, and then projected those numbers over a lifetime appointment. It was well into the tens of millions. That’s when I brought the story to the New York Times in 2017. As a supreme court justice now, her extreme views may affect upwards of half a billion Americans in her lifetime,” he told the Guardian.

• In the US, call or text the Childhelp abuse hotline on 800-422-4453. In the UK, the NSPCC offers support to children on 0800 1111, and adults concerned about a child on 0808 800 5000. The National Association for People Abused in Childhood (Napac) offers support for adult survivors on 0808 801 0331. In Australia, children, young adults, parents and teachers can contact the Kids Helpline on 1800 55 1800, or Bravehearts on 1800 272 831, and adult survivors can contact Blue Knot Foundation on 1300 657 380. Other sources of help can be found at Child Helplines International

'2 to 1': Calgary mayor-elect Gondek will be bolstered by majority-progressive council, say pundits

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'I heard a lot of people saying they really wanted change'

Elise Stolte · CBC News · Posted: Oct 19, 2021 

Left to right: David Hartwick, Anila Lee Yuen, Shane Keating and Zain Velji. CBC spoke with several community leaders and pundits Monday evening. (CBC)

Calgary city hall  watchers anticipate a more cohesive city council following Monday's vote, with many newly elected councillors sharing priorities with mayor-elect Jyoti Gondek.

One pollster estimates progressive-leaning councillors outnumber conservative-leaning candidates by roughly two to one, and others see an opportunity for Gondek to quickly push forward on key priorities such as COVID-19 response and infrastructure investments.

"What I think it is for mayor-elect Gondek, is a great starting point," campaign strategist Zain Velji told CBC Calgary's News at 11.

"She's got six to seven solid votes on most things she wants and if she runs her office like a political office she can sway three to five more."

Velji previously worked on Naheed Neshi's campaign.

Looking at those leading or elected, it's clear this council will also have more women and candidates who are BIPOC (Black, Indigenous and people of colour) than recent councils. It has only three incumbents but the mayor and two new councillors have previous council experience. 

CBC News talked with with several community leaders, strategists and pundits as the final votes were counted. Here's what they had to say.

Former Ward 3 city councillor Jyoti Gondek, shown giving her victory speech Monday night, will be Calgary's next mayor. Gondek, who has a PhD in urban sociology, worked in consulting and led the Westman Centre for Real Estate Studies at the University of Calgary's Haskayne School of Business before entering politics. (Radio-Canada)

A progressive-leaning council

There are no party affiliations in municipal politics. But based on each winner's platforms and endorsements, pollster Janet Brown says she sees a fairly left-leaning council.  

"On balance, I think we've got more progressive councillors than we do conservative councillors, maybe by a two-to-one margin," said Brown. "That will be good very news for Gondek because this will be an easier council for her to wrangle and get on side with her priorities."

Gondek won with more support than any of the polls predicted. She had 45 per cent of the vote with 256 of 259 polls reporting. But that didn't surprise Brown.

"As soon as the results started coming in, I sort of laughed at myself and I thought: 'You know, this happens election after election.' We think it's going to be a close race ... but Calgary doesn't really have a history of electing conservative mayors."

The political action group Lead Calgary endorsed candidates whose platforms prioritized cutting property taxes and restoring fiscal responsibility. That includes winners Dan McLean (Ward 13), Peter Demong (Ward 14), Andre Chabot (Ward 10), Terry Wong (Ward 7) and Sean Chu (Ward 4).

It will be a mixed council that represents the political diversity of Calgary, added Velji, saying the actual vote split will likely shift from issue to issue. But Gondek is also hard to paint as either right or left.

"We really don't know how she lands on certain things."

WATCH | Hear what CBC Calgary's political panel had to say about last night's election.

CBC Calgary's political panel breaks down the vote

13 hours ago

12:27

CBC Calgary's political panel included Maclean's Jason Markusoff, political strategist Zain Velji, and pollster Janet Brown to discuss last night's election. 12:27

Newcomers but with experience  

"I heard a lot of people saying they really wanted change, and I think that's what we're seeing now," said David Hartwick, a longtime volunteer with the Northern Hills Community Association.

In the ward races, voters turfed two incumbents and other races were close. Joe Magliocca and Diane Colley-Urquhart each lost, coming third in their races, while Gian-Carlo Carra squeaked in a win by just 152 votes.

Ward 4 incumbent Sean Chu, who has served as a city councillor since 2013, led his closest rival DJ Kelly by a margin of 706 votes with 28/30 stations reporting as of 5:30 a.m. on Tuesday, according to Elections Calgary.

But Hartwick says those worried about a loss of institutional memory should take heart. Gondek is not a newcomer and two of the newly elected councillors have council experience. Newcomers Andre Chabot and Richard Pootmans have five previous terms on council between them. 

• WATCH | Calgary mayor-elect Jyoti Gondek delivers her victory speech:

Gondek makes history claiming Calgary's top job

14 hours ago

7:12

Jyoti Gondek stepped onto the podium as Calgary's first woman elected as mayor. 7:12

Out-going councillor Shane Keating was quite worried about the high turnover. But not Monday night.

"I've very excited and extremely happy," he said, looking at the results.

"You know, we've seen four years of this picking and snipping," he said. "I've always said that if you get the right people, it doesn't matter of political affiliations. I think you're going to have a great council coming forward.… We have individuals who have master's degrees. We have individuals who are who are educators, engineers or have another master's degree in administration."

Keating will be replaced in Ward 12 by Evan Spencer, who previously worked in his constituency office.

• CALGARY VOTES 2021
  Calgary's new mayor-elect, Jyoti Gondek, in her own words

• CALGARY VOTES 2021
  Get the latest Calgary municipal election results here

Making history 

Calgary's new council will have six women compared with three on the previous council.

"That's obviously not parity but it's a whole lot better than we've done in recent past. At present, six of 15 are racialized Calgarians. That's a high water mark for a city that has a pretty big history of electing only white people," Maclean's correspondent Jason Markusoff said on News at 11.

Gondek's parents immigrated from Punjab, India. Edmonton also elected a mayor of south Asian descent in Amarjeet Sohi, who was a former councillor and a former cabinet minister.

Anila Lee Yuen, who grew up in Calgary as a child of south Asian parents, says that's a big deal for young people who need to see themselves in community leaders. 

"Twelve-year-old me, my eyes would be just bulging out of my head right now because they look like me," said Lee Yuen. "The leaders of our province — our mayors look like me.… They grew up with similar cultural context as I did, and I never thought that that would happen when I was 12. And they've got good policy."

Gondek is also Calgary's first female mayor.

ABOUT THE AUTHOR

Elise Stolte

Journalist

Elise Stolte has 15 years of experience telling the stories of her community and has been recognized for feature writing, social-impact and community-based journalism. She previously worked for the Edmonton Journal and joined CBC Calgary this summer.

Jasmine Mian, former Olympic wrestler,

 wins vacated Ward 3 seat

Jasmine Mian will be one of several newcomers on city council after successfully winning her bid to fill the seat vacated by Jyoti Gondek

Author of the article: Dylan Short
Publishing date:Oct 19, 2021 •

Jasmine Mian

A political newcomer once known for representing her country will now represent the north Calgary Ward 3 at city hall for the next four years.

Jasmine Mian will be one of several newcomers on city council after successfully winning her bid to fill the seat vacated by Jyoti Gondek who handedly won the mayoral race on Monday, defeating her main competitors Jeremy Farkas and Jeff Davison by a wide margin.

Mian said she had been going door to door to attract voters to her message of navigating the pandemic and continuing to support developing communities in north-central Calgary and that voters gave her a clear response.

“I think that I was given a very clear mandate by the voters of Ward 3 to run a positive campaign to collaborate with the rest of the councillors on some of the big challenges we have,” said Mian.

Mian, who represented Canada as a wrestler at the 2016 Olympics, said representing her constituents will be the honour of a lifetime. She said her first priority, once the new council is sworn in, is to continue to navigate through the COVID-19 pandemic. She noted that the most important ward-specific issues are ensuring services and infrastructure continue to grow.

Mian was among eight candidates vying for the Ward 3 seat.

Coming up just short with the second most votes was Brent Trenholm. Speaking to Postmedia before polls closed, he said he had knocked on over 20,000 doors in the past year and felt he had the support to be successful.

“It’s been a lot of fun,” said Trenholm, as votes were still rolling in. “It’s been a long grind . . . But, I’ll accept what’s there. And wish the next person well.”

Trenholm thanked everyone who voted for him, as well as his campaign team for supporting him. He said Mian will have a tough job over the next four years.

Braid: Gondek rides to stunning win in

 unprecedented reboot of city hall

This is the look of Alberta's great cities today — tolerant, forward-looking and ready to deal realistically with social problems

Author of the article:Don Braid • Calgary Herald
Publishing date:Oct 19, 2021 • 

  Jyoti Gondek at her campaign headquarters after being elected as Calgary Mayor on Monday, October 18, 2021. PHOTO BY AZIN GHAFFARI/POSTMEDIA
Article content

As election results poured in Monday night it was soon clear that Calgary’s new mayor is Jyoti Gondek, who only a couple of months ago stood barely above 10 per cent in polling support.

With Amarjeet Sohi’s victory in Edmonton, the province will once again have two relatively progressive mayors as counterpoints to Premier Jason Kenney’s UCP government.

This time, both mayors are people of colour. They are also Canadians of Punjabi heritage. And Gondek will be Calgary’s first female in the job since we started electing mayors in 1884.

If this doesn’t finally obliterate national stereotypes of Alberta as some kind of racist backwater, perhaps nothing ever will. But this is the look of Alberta’s great cities today — tolerant, forward-looking and ready to deal realistically with social problems.

Gondek says her first job will be to “meet with all the councillors elected tonight and talk about how we can collaborate to move the city forward.

“I also look forward to working with the provincial government. Our future requires us to work together.”

But she also said that when necessary, she’ll speak firmly for Calgary in dealing with a government that has often been bitterly critical of city hall.

Gondek overtook Jeromy Farkas on her way to a thumping victory. And her biggest ally, although he surely didn’t mean to be, may have been Jeff Davison.

Davison was surprisingly strong and likely took considerable support away from Farkas.

Davison also painted himself as a true conservative, but one who can collaborate and build rather than pick fights and say no to almost everything that comes out of city hall.

The result showed exactly what was happening when Farkas sent his open letter last Friday , asking supporters of Davison and Brad Field to support him instead.

Farkas must have known that he was losing votes to these more reasonable choices, and made one last desperate attempt to hold the conservative vote.

In the end, Field also did remarkably well after a long campaign that went largely unnoticed for months, but finally showed him as a caring and able candidate.

Farkas is just the latest in a string of ideological conservatives who have failed to win the mayor’s chair. Ric McIver, now a provincial minister, lost to Naheed Nenshi in 2010. In 2017, Nenshi beat Bill Smith, who proudly offered himself as a conservative.

Now, Farkas goes down despite ardent support from UCP types and Calgary’s old conservative guard. It shows that many Calgarians want their city government to be independent of the province, and focus mainly on urban issues rather than partisan agendas.

Jeromy Farkas talks on the phone minutes after giving a concession speech at Heritage Park Calgary on Monday, October 18, 2021. Jim Wells/Postmedia

But there was one big win for Kenney — the referendum calling for removal of equalization from the Constitution carried with a 58 per cent majority in Calgary.

All other municipalities have yet to be tallied and the final result will be announced by Elections Alberta on Oct. 26 .

But even with Edmonton expected to oppose the move, Calgary’s 58 per cent, along with expected majorities in rural Alberta, should carry the question for Kenney.

Otherwise, the voters’ choices failed to move council in a conservative direction. Several progressive councillors were elected, along with comeback kids Richard Pootmans and Andre Chabot .

Scandal-ridden Joe Magliocca got clobbered in Ward 2 by Jennifer Wyness . Veteran Diane Colley-Urquhart lost decisively in Ward 13 to Dan McLean .

In an election where 10 seats were empty, even incumbents lost despite being almost invulnerable in previous elections.

The voters clearly wanted to clean house. What they came up with, according to Stephen Carter, Gondek’s campaign manager, is a “pragmatic group” that will be able to work together.

Carter is a comeback story of his own. He played a role in Nenshi’s first victory in 2010 and was behind Alison Redford’s drive to be Alberta’s first female premier, serving as her chief of staff for a time before she was forced to resign.

Now he’s back in the game and could well play a senior role in Jyoti Gondek’s city hall.

It will be much different from Naheed Nenshi’s last council, but hopefully infused with new energy and a wish for genuine collaboration in the city’s interests.

Don Braid’s column appears regularly in the Herald