A Canadian married couple and law partners, Nicholas Cartel and Singa Bui, are embroiled in a significant legal and financial crisis as their firm’s trust accounts show a shortage of several million dollars. Their law licenses have been provisionally suspended, their firm has been shuttered, and they face a police investigation alongside 15 lawsuits totaling $15.5 million.
According to transactions starting last year, issues were noted when seller mortgages were not being paid off despite buyers depositing funds in the firm’s trust account. Most missing funds originated from Bui’s real estate practice. Cartel, maintaining a separate non-real estate practice, denied any involvement in the financial mismanagement of the firm and claimed he had no access to the trust account.
In a letter to the Law Society of Ontario (LSO) dated December 1, 2023, a lawyer representing Bui indicated that she informed the LSO of the improper transfer of trust funds, asserting Cartel and other associates or employees were not responsible. However, the LSO decided to suspend both attorneys on April 26, while it continues its investigation into the missing funds, which reportedly funded an extravagant lifestyle, including payments on the couple’s mortgages, credit card bills, and business taxes.
Furthermore, the LSO found problematic behavior from Cartel, suggesting he misled another lawyer attempting to track client funds and did not sufficiently investigate the firm’s financial discrepancies. Cartel is also said to have failed to provide the required bank account statements to an LSO auditor.
In a civil suit stemming from a real estate transaction, the couple faces allegations of failing to meet all discovery obligations. Justice William Chalmers expressed skepticism regarding Cartel’s assertions of ignorance about the missing funds, questioning how he could be unaware given their shared household and family expenses.
Bui has reportedly been hospitalized for several months, and Cartel has expressed intentions to “make whole” the affected clients, potentially using his own funds to do so. Nevertheless, the victims of the missing funds are still awaiting restitution.
For more detailed coverage on this ongoing legal turmoil, visit Above The Law.