Diverted Fees Draws Revocation

The Ontario Law Society Tribunal Hearing Panel ordered revocation of an attorney admitted in 2017 for taking funds due to his law firm

Misappropriation includes the unauthorized use of client funds. The evidence is unequivocal that the Licensee collected monies from clients directly and did not deposit these funds to the Firm’s general account. He did so without prior agreement or understanding of the Firm that he could divert client funds to his personal banking account. We accept the submission of the Law Society that the Licensee was being dishonest by diverting client funds from the Firm to his personal bank account. While he did repay $15,000 after termination, the monies were first diverted without any authorization. It is of note that the diverted funds were not reflected in the Firm’s accounting records and as such remained as accounts receivable. The evidence supports the fact that the Licensee took client funds intended to pay their accounts receivable and retained those monies for himself.

(Mike Frisch)