It’s not surprising that a disbarred lawyer was sentenced to a significant jail term for his role in a $1.5-million small-business-loan fraud, Toronto litigator Richard Shekter tells Law Times.
“Lawyers, like police officers, hold special positions in society,” Shekter, partner with Shekter Dychtenberg LLP, further tells AdvocateDaily.com.
“They are pledged to apply and uphold the law. As a result, transgressions are often dealt with more harshly by the courts."
In addition to seven years in jail, Ontario Superior Court Justice Nancy Spies ordered the lawyer to pay almost $800,000 in combined restitution and fines in lieu of forfeiture, says Law Times.
According to Spies’ April 12 decision, the 62-year-old lawyer and a co-accused were convicted of five counts of fraud over $5,000 and one count of money laundering. They were also found guilty of “committing the frauds for the benefit of or at the direction of a criminal organization they formed with a third person who earlier pleaded guilty,” says the article.
According to the decision, the three obtained fraudulent loans under the federal government’s Canada Small Business Financing Program. The trial focused on 16 loans made between 2007 and 2010.
Spies also determined that the lawyer “took a leading role in laundering the proceeds of the fraud as signing officer for a number of construction companies that provided borrowers with fraudulent invoices to present to the lenders for payment,” says the article.
To read more, click here