Law Times

Page 4 March 14, 2016 • Law TiMes www.lawtimesnews.com NEWS New in this edition • Updated Case Law: — R. v. Nur (2015, S.C.C.) – Where mandatory minimum sentencing laws are challenged, the question is what situations may reasonably arise, not whether such situations are likely to arise in the general day‑to‑day application of the law — Carter v. Canada (Attorney General) (2015, S.C.C.) – Court struck down the law prohibiting physician‑assisted dying as unconstitutionally overbroad in violation of s. 7 — R. v. Geddes (2015, Ont. C.A.) – Crown must prove beyond a reasonable doubt that accused secured the complainant's apparent consent by the exercise of coercive authority over the complainant • Legislative Amendments: — Victims Bill of Rights Act (S.C. 2015, c. 13) — Combating Counterfeit Products Act (S.C. 2014, c. 32) — Protecting Canadians from Online Crime Act (S.C. 2014, c. 31) — An Act to amend the Criminal Code and the National Defence Act (criminal organization recruitment) (S.C. 2014, c. 17) — An Act to amend the Criminal Code (personating peace officer or public officer) (S.C. 2014, c. 10) Get access to the three formats: hardcover book plus CD‑ROM plus Thomson Reuters ProView™ eBook beginning with the 2016 edition.* *ProView not available to bookstores, academic institutions, and students New Edition Martin's Annual Criminal Code, 2016 Edition With Annotations by Edward L. Greenspan Q.C., The Honourable Justice Marc Rosenberg, and Marie Henein, LL.B., LL.M. Order # 804735-65203 $120 Hardcover + CD‑ROM + eBook approx. 2540 pages August 2015 978‑0‑88804‑735‑9 2 additional annotated supplements $20–$30 per supplement Annual volumes supplied on standing order subscription e‑Notes delivered by email on standing order subscription Multiple copy discounts available Shipping and handling are extra. Price(s) subject to change without notice and subject to applicable taxes. 00235KX‑A54109 CANADA LAW BOOK ® Lawyer loses licence for diverting clients' money BY MARG. BRUINEMAN For Law Times A Richmond Hill, Ont., lawyer who admitted to making false state- ments and diverting clients' money for his own use has lost his licence to prac- tice law. Earlier this month, the Law Society of Upper Canada revoked David Mario Farmani's licence on the grounds of pro- fessional misconduct. Farmani had been practising real estate law in Richmond Hill and also serving the Iranian-Canadian community. In 2014, Farmani had pleaded guilty and was convicted for a variety of offences under the Ontario Provincial Offences Act. The convictions were for making 120 false statements on land transfer instru- ments registered on title and submitted under the Ontario Electronic Land Regis- tration System. He admitted to underpaying the To- ronto and Ontario governments $270,571 in land transfer taxes on conveyances he handled between 2008 and 2011, and pocketing $151,103 as a result of making false statements regarding the land trans- fer tax payable. Farmani also over-collected $53,617 from clients and falsified documents to cover up the false statements he made to the government on his clients' behalves, according to a June 2014 Law Society Tri- bunal decision which resulted in an inter- locutory suspension. That suspension remained in place un- til the outcome of his disciplinary hear- ing, which was held this past January. Earlier this month, the tribunal revoked Farmani's licence and ordered him to pay $102,000 restitution to 47 former cli- ents. He was also ordered to pay the LSUC $25,000 in costs. Farmani could not be reached and his lawyer, Alfred Schorr, declined to comment. In an affidavit for the 2014 hearing, Farmani didn't dispute the law society's al- legations of fraud. He said he had stopped abusing alcohol three years earlier and was receiving psychological counseling. Farmani said at the time of the of- fences, he was under a great deal of stress arising from health issues his wife and one of his children were facing. He said he had been practising honestly since his last tax transfer offence in late 2011 and was operating within the Rules of Professional Conduct. However, that didn't satisfy the 2014 tribunal panel. "His personal belief that he is now able to practise law in accordance with the Rules does not answer the serious con- cerns about his honesty, integrity and competence that f low from his admitted offences," concluded the tribunal, chaired by Laura Donaldson. "Neither is it suffi- cient to shield him from the consequences of his actions, all of which were committed under the auspices of his licence to practise law and involve professional misconduct at the very serious end of the spectrum." The core of the issue results from his January 2014 guilty pleas to the land trans- fer tax charges. But concerns also stemmed from an October 2013 interview with the law so- ciety, where Farmani admitted he over- collected funds from his clients for title insurance and made out cheques to other people that he deposited into his own bank account as part of the land transfer tax schemes. He also admitted to closing transactions with false land transfer tax statements and that he created false re- porting letters to clients returning "excess funds" to avoid detection. According to the LSUC, investiga- tions are prompted when allegations and evidence of a breach of the Rules of Pro- fessional Conduct surface. Last year, that resulted in 77 lawyer conduct hearings. In 2014, there were 101, with 94 in 2013 and 82 in 2012. In 2014, 25 Ontario lawyers lost their li- cence to practise law – 18 were revoked and another seven surrendered their licences. In 2013, 11 licences were revoked and seven gave up their licences. In 2012, 14 licences were revoked and four surrendered. A licensee might be given permission to surrender the licence for conduct that could otherwise result in revocation if there are mitigating factors. Marcy Segal, a Toronto criminal lawyer who has represented lawyers facing dis- ciplinary action, says the loss of a licence to practise law can be crushing, resulting in mental anguish, embarrassment, and shame, as well as a dramatic change of the individual's lifestyle. It could strike a blow to the reputation of the profession overall and erode confidence in professionals. Segal says there's often "a story behind somebody's fall from grace." "I think it's really difficult to sort of pick oneself up and look beyond and make the best of it and recreate oneself," she says. David Humphrey, a partner at Toron- to's Greenspan Humphrey Lavine, focuses his advocacy practice on criminal law as well as regulatory offences and discipline matters. He says losing one's licence to practise law is devastating both personally and professionally. "Most lawyers very much identify themselves as lawyers," he says. And when the identity is directly linked to an individual's profession, he says, the loss of that profession is a brutal blow. The disciplinary process is not swift and could take a year or more before a hear- ing is held. Ian Roland, a partner at Paliare Ro- land Rosenberg Rothstein LLP whose litigation practice consists of profes- sional disciplinary work and employ- ment law, agrees that the loss of a licence to practice law can be crushing because it's much more than just losing a job. "Employment is often a way in which we define ourselves, it's who we are. We're defined by the nature of the activ- ity that we do day-to-day in our work. It's a fundamental aspect of our lives. That's no less, probably more so, for law- yers," says Roland. LT The Law Society of Upper Canada revoked David Farmani's licence due to professional misconduct.

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