BIC Fund placed into receivership after church deposits allegedly poured into insider-linked investment

BIC Fund, a faith-based federal not-for-profit that took deposits from Be in Christ Church of Canada (the “Denomination”), affiliated congregations and individual believers, was placed into receivership on May 15, 2026, on application by the Denomination, the largest depositor in the Fund. The application was brought under section 253 of the Canada Not-for-Profit Corporations Act and section 101 of the Courts of Justice Act. The Court found that the Denomination had made out a strong prima facie case of oppression and that the Fund could not remain under the control of Robert Leadley, its long-time treasurer and operating mind.

The Fund was incorporated in 1998 as Brethren in Christ Fund and later continued as BIC Fund. Its stated purpose was to receive contributions and lend money to legal entities on terms it considered appropriate. In practice, the Denomination says the Fund operated as a denominational stewardship vehicle, pooling savings from the Be in Christ community and using those funds to make loans to churches and ministries for property acquisitions, construction, renovations, land purchases and similar capital projects.

Depositors understood that they would earn interest, most recently at 4% per year compounded monthly, and could redeem their deposits on 3 days’ notice. The Denomination’s 2025 audited financial statements recorded approximately $1.6 million invested in fixed-interest deposits with the Fund, but schedules later produced by Leadley showed that, as at March 31, 2026, the Fund owed approximately $12 million to several hundred depositors, including approximately $7.7 million to individual depositors, approximately $1.8 million to local church congregations and affiliated Be in Christ ministries, and approximately $2.6 million to the Denomination.

The crisis surfaced in April 2026, when two depositors were unable to redeem their funds and asked the Denomination’s board for information. At an April 2, 2026 meeting with Denomination board members and senior staff, Leadley allegedly disclosed that the great majority of the Fund’s assets had been invested in Duroair Air Technologies Inc. or an affiliate, a private for-profit company in which he had a personal ownership interest. Leadley said the Fund held an approximately 70% equity stake in Duroair, while the balance was held by other investors, including himself.

Leadley allegedly described the Duroair investment as a “very unwise” commingling of Fund assets with his personal business interests. He also allegedly said Duroair had been sold below what he viewed as market value, that sale proceeds were to be paid over approximately three years, and that expected recoveries had been delayed by the death of his business partner and litigation in North Carolina. The materials state that Leadley estimated approximately $3 million in further proceeds could flow to the Fund, including approximately $1.4 million in July 2026 and approximately $1.6 million in August or September 2026, but that the proceeds would not be enough to repay all depositors.

According to PwC’s pre-filing report, Leadley disclosed to it that the Fund had about $0.057 million in cash against investor liabilities estimated between $8 million and $12 million owed to approximately 200 to 250 depositors.

The alleged governance failures extended beyond the Duroair investment. The Denomination says Leadley admitted that he concealed the true position from depositors to avoid alarming them and triggering redemptions the Fund could not meet. He allegedly continued to credit 4% interest and issue quarterly statements showing accrued interest even though there were no investment returns to support those credits. He also allegedly admitted that required annual returns had not been filed and that no annual meeting of members had been held.

The Fund’s records also appear to be a central issue for the receivership. PwC reported that the Fund’s books and records consisted of an electronic depositor database on a personal computer and physical records stored in a barn. PwC said the availability of historical electronic data was uncertain and that part of the physical records had been affected by a fire, with the extent of any loss still unknown.

The Denomination retained Dickinson Wright and PwC Forensics to investigate the Fund’s affairs. On April 22, 2026, Dickinson Wright demanded that Leadley freeze the Fund, stop accepting further investments or contributions, stop making redemptions or other payments, and cooperate with PwC. The Denomination said it did not receive satisfactory confirmation and later became aware, on May 13, 2026, that another redemption was being arranged, including a prepared cheque for approximately $0.0155 million toward a requested approximately $0.04 million payment.

Justice Black accepted that the Denomination had lost confidence in Leadley and that continued redemptions were improper given the competing claims.

The receivership order gives the receiver control over the Fund’s property, the power to collect amounts owing to the Fund, settle or compromise debts, pursue or defend proceedings, exercise shareholder and other rights, and cause the Fund to make a voluntary assignment in bankruptcy if necessary. It also expressly removes Leadley’s ability to exercise power or control over the Fund, its affairs or its bank accounts.

PwC is the receiver. Counsel is Cassels for the receiver, and Dickinson Wright for the Denomination.