Law in Quebec

News about Quebec legal developments


misappropriation

  • Notary found guilty of misappropriation

    A Quebec notary with drug problems and in financial straits was found guilty of misappropriating more than $50,000 from a client by a disciplinary committee, the eighth case heard by disciplinary councils over the past year dealing with pilfering by legal professionals, something that has been described as the profession’s dirty little secret.

    Daniel Girouard, who was admitted to the Chambre des notaires in 1986, was found guilty of breaching articles 1, 13, and 56 (7) of the Code of ethics of notaries — of failing to act with dignity, abiding by the strictest rules of integrity, and misappropriation. Girouard misappropriated $59,250 held in his trust account, and used it to pay his drug debts.

    In an email to an investigator, Girouard said:

    “I know anyway that I will be struck off. I am addressing you in order to minimise the misery of the parties in this case. As for the consequences for me vis-à-vis the Chamber and the tax authorities, I take responsibility.”

    The disciplinary committee will determine his sanction at a later date. But it’s moot. Girouard has resigned.

    The victim was reimbursed by the professional corporation’s indemnity fund.

  • Montreal lawyer disbarred for 10 years for misappropriation

    A month after an Ottawa lawyer with serious memory problems was disbarred after failing to help the Law Society of Ontario investigate complaints made by a raft of clients who are collectively owed more than $2.5 million, a Montreal lawyer who misappropriated approximately $130,000 suffered nearly the same fate.

    Antonella Petrolito, a member of the Barreau du Quebec since 1989 but no longer practicing since she went bankrupt in 2016, has been disbarred by the Quebec Bar’s disciplinary committee for 10 years and ordered to pay the victims a total of $137,900, the amounts she pilfered, after she pled guilty to the charges.

    Petrolito, now working as a legal assistant for a lawyer, has a history of misappropriating funds. In 1999, the disciplinary committee sanctioned her for misappropriated on three occasions amounts totaling $3,350.

    “In spite of three decisions rendered against her in 1999, one in which she was struck from the roll for two years, she did not change her conduct and blatantly disregarded her ethical obligations,” said the disciplinary committee.

  • Regulator sanctions five financial advisors

    The disciplinary committee of the Chambre de la sécurité financière has had a busy month, sanctioning at least four members in the past month.

    The CSF is a unique body in Canada. It maintains and oversees the discipline, training, and ethics of 32,000 professionals practicing in group savings plan brokerage, financial planning, insurance of persons, group insurance of persons, and scholarship plan brokerage. In all Canadian provinces except Quebec, mutual fund dealers and representatives are subject solely to securities regulatory organizations like the Mutual Fund Dealers Association of Canada.

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  • Former president of Quebec legal society temporarily disbarred

    Stéphane Rivard could not bear to open correspondence from the Quebec taxman.

    During a stretch of four years, between 2007 and 2011, letters outlining collection procedures and seizures launched against him by Revenue Quebec were put by the wayside. Rulings by Quebec Superior Court and by the Federal Court of Canada in 2012 over his tax affairs too were ignored.

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  • Montreal law firm on its own to defend itself, appeal court rules

    A Montreal law firm caught in a tangled web of complicated lawsuits after a former partner allegedly orchestrated a multi-million dollar Ponzi scheme through his lawyer’s trust account lost a key legal battle before the Quebec Court of Appeal in a ruling that underscores the exposure law firms face when dealing with rogue lawyers.

    In a scandal that has shaken the Montreal legal community, well-regarded Montreal law firm Kaufman Laramée LLP faces at least five lawsuits arising from the alleged fraud by former clients of Dany Perras, a lawyer who resigned abruptly from the roll in October in 2011 after the Barreau du Québec launched an investigation into the misappropriation of funds allegedly committed by Perras. The former Montreal lawyer, who briefly practiced at Kaufman Laramée for six months in 2011, faced a hearing this past January before the Bar’s Disciplinary Council. A decision is expected shortly.

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  • Misappropriation of funds: The profession’s dirty little secret

    On an unusually warm and foggy Saturday evening this past December the $1.7-million home of Dany Perras was set ablaze, the third time in the space of a year an act of vandalism targeted the former Montreal lawyer. Perras, who resigned abruptly from the roll in October 2011, is under investigation by the Quebec Bar for allegedly orchestrated a multi-million dollar Ponzi scheme through his lawyers’ trust account. It’s been more than 16 months since the scandal that shook the Montreal legal community erupted, and the fallout is still being felt. Successfully petitioned into bankruptcy, Perras is the subject of an ongoing criminal probe and a host of legal proceedings – many of which are under court seal — launched by more than a dozen creditors seeking an amount surpassing $6 million.

    The Perras case is unique, and yet at the same time it is not.

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Law in Quebec
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