Law Times

Page 2 January 14, 2013 Law Times • NEWS Lawyer in hot water after clients lost $640,000 BY YAMRI TADDESE Law Times S t. Catharines, Ont., lawyer Graham Wilson is facing discipline by the Law Society of Upper Canada after he pleaded guilty to a dozen breach of trust charges for failing to account for hundreds of thousands of dollars of his clients' money. The law society revealed last week it's proceeding with a slew of misconduct allegations against the sole practitioner following a criminal case last year involving dozens of clients, including an elderly widow. In a notice of application, the law society lists the particulars of Wilson's crimes that he committed between October 2007 and August 2011. In total, Wilson's clients lost $640,000. In many of the cases, Wilson's clients complained the lawyer was holding money in trust on their behalf but didn't give it back to them. In the fall, the court sentenced him to three years in jail. Wilson's troubles began when he himself was a victim of a bad cheque scam, according to information provided by law society forensic auditor Joseph DiPietro. "He says that he was a vic- not clear." To fill the hole in his trust account, according to DiPietro's affidavit, Wilson used real estate funds he was keeping for one of his clients, Gertrude Kuska, an elderly widow. "He covered the cheque with Gertrude's money, telling himself he would get her settled into her nursing home and sort Under the circumstances, we have no hesitation in granting the order to suspend his licence forthwith. tim of fraud; he was retained for $2,000 by a mystery woman named Gerry Schuman to take receipt of payment from her ex-husband and in return issue a cheque on her behalf to FJ Investments," a 2011 hearing panel's decision to suspend Wilson on an interlocutory basis states. "He issued a trust cheque in the amount of $80,000 to FJ Investments, but the cheque he received from the ex-husband did it out later." In another case, Wilson acted on a property sale for Liliano Perossa in June 2010. The lawyer was to hold on to $25,000 from the proceeds to pay for upgrades needed on the buildings. "Review of the file shows the upgrade cost was only $1,000 and was paid in October 2010. Mr. Perossa did not receive the remaining $24,000 until March 24, 2011," the hearing panel stated during the suspension proceedings. "The lawyer received proceeds from the sale when it closed on June 29, 2010. On June 30, 2010, the balance in trust was zero. It appears he paid Mr. Perossa in March 2011 from other sources." According to the St. Catharines Standard, other victims, such as Debbie and Ross Jacobs, discovered the money they were putting towards a down payment for a home through Wilson never reached the creditors. Creditors came after the couple, treating them like "scums," they testified in court. "Basically, for over a year we were living in hell," the newspaper quoted Debbie as saying on the stand during a victim impact statement in October. The couple said stores began refusing their bank cards and they had to borrow money from relatives to pay their mortgage. "I want to ensure that there is ONTARIO LAWYER'S PHONE BOOK 2013 YOUR MOST COMPLETE DIRECTORY OF ONTARIO LAWYERS, LAW FIRMS, JUDGES AND COURTS With more than 1,400 pages of essential legal references, Ontario Lawyer's Phone Book is your best connection to legal services in Ontario. Subscribers can depend on the credibility, accuracy and currency of this directory year after year. More detail and a wider scope of legal contact information for Ontario than any other source: • More than 26,000 lawyers • More than 9,000 law firms and corporate offices • Fax and telephone numbers, e-mail addresses, office locations and postal codes Perfectbound • Published December each year On subscription $71 One time purchase $74 L88804-589 Multiple copy discounts available Prices subject to change without notice, to applicable taxes and shipping & handling. Includes lists of: • Federal and provincial judges • Federal courts, including a section for federal government departments, boards and commissions • Ontario courts and services, including a section for provincial government ministries, boards and commissions • Small claims courts • Miscellaneous services for lawyers Visit carswell.com or call 1.800.387.5164 for a 30-day no-risk evaluation www.lawtimesnews.com no possibility that [Wilson] will ever be able to do this to anyone else in the future," Debbie told the court. Wilson had previously been told to abstain from practice while the law society investigated allegations against him, but "he has not done a good job of complying with the guidelines for lawyers who have undertaken not to practise," the law society panel found during the suspension ruling. In July 2011, Wilson reassured a client that he wasn't suspended after being confronted with information that he wasn't allowed to practise, the panel heard. "It appears that the [lawyer] did not see fit to attend before us today, although he was aware that a hearing was going to take place regarding an interim suspension," the panel said. "Under the circumstances, we have no hesitation in granting the order to suspend his licence forthwith." The charges Wilson was found guilty of include: • Being a trustee of nearly $115,000 for the benefit of deceased estate owner Rita Haughian with intent to defraud. • Forging a client's signature in order to deposit a settlement amount into his own bank account. • Using $10,000 owed to Arthur Murray in trust for purposes not authorized by the trust. • Being a trustee of more than $4,000 held for the benefit of Emily Blanche Copeland with intent to defraud. The law society has paid restitution to most of Wilson's victims, according to the Standard. Last week, the regulator refused to provide details on the compensation provided. Wilson's hearing begins this week. LT

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