The Dangerous World Of International Finance

An applicant for bar admission has proven good character despite being on parole for a wire fraud conviction, according to a decision of the Ontario Law Society Tribunal Hearing Division

The reason for the referral is that Dr. Kalaycioglu is currently on parole after having served 16.5 years of a 27-year (mandatory) sentence after being convicted of wire fraud in the United States. He was released on full parole shortly after he was transferred to Canada.

Dr. Kalaycioglu’s conduct since he was charged with these serious offences has been exemplary. He has demonstrated sincere remorse, and his actions and the character references that he has produced reflect that he has been rehabilitated. We conclude that Dr. Kalaycioglu has earned a second chance and deserves the opportunity to serve the public as a lawyer.

The conviction was affirmed by the United States Court of Appeals for the Eleventh Circuit in an unpublished decision.

The United States Supreme Court denied certiorari. 

After incarceration

 Unlike many others who find themselves on the wrong side of the law, from the outset of his incarceration, Dr. Kalaycioglu started working on his rehabilitation. He committed his time to improve the lives of fellow inmates through tutoring and teaching – helping hundreds of inmates to obtain their high school diplomas and encouraging them towards college education. He educated himself to help come to terms with, understand, and accept responsibility for his misconduct. He made restitution to those harmed in the fraud to which he was a party by assigning judgments that he obtained against persons to whom he had made loans in his financing business, including judgments against his co-accuseds. He furthered his education by obtaining an MBA with a specialism in finance, which gave him insights into what he had done wrong, and the red flags of fraud that he had missed. He then obtained an LLM with merit, and an LLB with first class honours, from the University of London. He also qualified as a personal fitness trainer and nutrition counsellor.

He was paroled on October 31, 2019

We find that Dr. Kalaycioglu is sincere in his remorse and contrition for the harm that he caused, he has undergone substantial rehabilitative efforts, and his conduct since the events leading to his incarceration have been faultless. He has obtained the reinstatement of his licence as a professional engineer, holds a position as an adjunct professor at Toronto Metropolitan University, and he has a job at a leading-edge robotics firm. At the same time, he has completed a Canadian LLM and his NAC accreditation, passed the LSO Bar Exams, and completed his law practice placement. Dr. Kalaycioglu’s principal supervising attorney concluded, “he has proven himself to be an individual of exceptional dedication, reliability and integrity.”

The crime

Dr. Kalaycioglu was asked to, and did make, representations to potential investors and an investment advisor about the ability of Meridian Bank- to provide attractive returns on certificates of deposit to secure their investments. He falsely represented that the deposits at Meridian Bank were insured, and that the owners of the Bank included Citibank and UBS. When he made these representations, Dr. Kalaycioglu believed them to be true, but he did not conduct any due diligence to verify the accuracy of his representations. Given that the IIG Principals had already said that IIG could not repay the Bensa loan, Dr. Kalaycioglu appears to have been wilfully blind to the badges of fraud…

Dr. Kalaycioglu’s misconduct was serious. Innocent investors lost their investments, in part because of his misconduct. With reflection and a better understanding of what transpired, Dr. Kalaycioglu now accepts his guilt, and had demonstrated insight into the harm that he caused to the investors. He has expressed genuine remorse.

Present character

 Since his conviction, Dr. Kalaycioglu has committed himself to redemption with thoughtfulness, and generosity of self and spirit. He identified the desperate need of his fellow inmates to obtain a basic education so that they could lead more productive lives when released from jail. At the same time, he educated himself, through three degrees while incarcerated, and in the process gained important insight into his own wrongdoing. Dr. Kalaycioglu committed himself to leading a better life on his release, including both by regaining his engineering licence and contributing to the scientific community, but also to take the remaining steps to become a lawyer. He has risen from adversity and excelled at everything to which he has turned his attention.

Passage of time

We appreciate that Dr. Kalaycioglu remains on parole until July 31, 2027. The LSO argued that there is a risk that if Dr. Kalaycioglu breaches his parole, he could go back to jail. While, of course, anything is possible, there is in our view no reasonable prospect that Dr. Kalaycioglu will breach his parole. He has confirmed that he has no interest in returning to the world of international finance. His focus has been, and still is on, succeeding in robotics engineering and establishing a law practice where he can leverage his engineering expertise to providing legal advice where the professions intersect in the areas of licensing and intellectual property, as well as providing legal services to those in need, where he will be able to draw on his lived experience. Dr. Kalaycioglu has not breached the parole conditions since they were imposed almost five years ago, and he is committed to moving his life forward in a positive, law-abiding manner. He confirmed that he has had, and will have, no difficulty in complying with the parole conditions. His evidence is that money has lost its power over him. All he desires is a stable income, to spend time with his family, and to have a positive impact with the rest of his life.

Conclusion