Summary:
KHAN – Professional Misconduct – Findings and Penalty – Based on an agreed statement of facts (ASF) and the Lawyer’s admission, he was found to have engaged in professional misconduct as alleged – The particulars of the misconduct were very serious and included: a failure to properly supervise his staff which resulted in the false endorsement of a number of settlement cheques, extensive and continuing failure to maintain proper books and records, including the failure to deposit hundreds of thousands of dollars into trust and significant shortages in his trust accounts, as well as a number of instances of failure to conduct himself with integrity by falsely executing releases and charging his client for disbursements for which he had already been paid by the insurer – Mitigating factors were that the Lawyer: co-operated with the Society’s investigation; entered into the ASF; consistently admitted his wrongdoing, and indicated a desire to address his deficiencies; made restitution to his clients for the overcharging of the disbursements; and accepted extensive remedial terms, thus showing insight into the problems in his practice – The Lawyer was suspended for six months – Extensive restrictions and conditions were ordered with respect to his resumption of practice – The Lawyer was to pay costs of $15,000.
[7] The First Application arose out of two client complaints received by the Society in 2008 about the Lawyer relating to his personal injury practice. They complained about the Lawyer’s handling of their settlements. The Lawyer had deposited settlement cheques into a bank account in the name of Thinkkings Inc. Thinkkings was a company used by the Lawyer’s brother for various business ventures, including a statutory accident benefits practice.
[11] The Second Application arose out of a complaint against the Lawyer regarding his representation of his clients in their tort and accident benefit claims relating to a motor vehicle accident. In connection with the settlement of their tort action, the complainants alleged that the Lawyer acted dishonourably by signing their names on a full and final release and that he also misled them about the settlement.
[14] Based upon the Agreed Statement of Facts and the admission of the Lawyer as described above, the panel made a finding that the Lawyer had engaged in professional misconduct as alleged.
[16] The particulars of the misconduct in this matter are very serious. The particulars include a failure to properly supervise his staff which resulted in the false endorsement of a number of settlement cheques, extensive and continuing failure to maintain proper books and records, including the failure to deposit hundreds of thousands of dollars into trust and significant shortages in his trust accounts, as well as a number of instances of failure to conduct himself with integrity by falsely executing releases and charging his client for disbursements for which he had already been paid by the insurer.