1. Incident Overview
In June, Arash Missaghi, a notorious fraudster, was shot and killed in his Toronto office. Missaghi’s death has brought renewed scrutiny to his two-decade history of fraud, which included a series of fraudulent mortgage investments and multiple legal representatives.
2. Background of Missaghi’s Fraudulent Activities
Missaghi, who was 54 at the time of his death, was involved in extensive mortgage fraud schemes. He faced several civil suits and two major criminal cases, which ultimately collapsed. Despite his fraudulent activities, he managed to secure representation from at least seven real estate lawyers, some of whom were later sanctioned by the Law Society of Ontario.
3. Issues with Lawyer Representation
Despite the numerous legal issues surrounding Missaghi, he continuously found new lawyers to represent him. This pattern raises concerns about the potential for lawyers to become unwittingly involved in fraudulent activities.
4. Need for Improved Warning Systems
Professor Andrew Flavelle Martin from Dalhousie University’s Schulich School of Law suggests that the Law Society of Ontario should develop better warning systems to alert lawyers about high-risk clients. “If a law society knows from a pattern that Person X develops relationships with lawyers and then exploits them, then it would certainly be important for lawyers to be on the lookout,” Prof. Martin said.
5. Criticism of the Law Society’s Actions
Ali Alijanpour, an artist from Richmond Hill, Ont., who claims to have been defrauded by Missaghi, argues that law societies need to do more to prevent such frauds. “It’s like having a car without tires; the lawyers are the tires that enable this fraudulent vehicle to move forward,” Alijanpour stated.
6. Historical Context and Lawyer Sanctions
Records show that several lawyers who worked with Missaghi were sanctioned by the Law Society of Ontario for their roles in his schemes. These sanctions ranged from temporary suspensions to disbarment. Missaghi was known for intimidating some of these lawyers, which further complicated their situations.
7. Calls for Action
Doug Bourassa, a lawyer representing Missaghi’s alleged victims, has repeatedly raised concerns with the Law Society about lawyers working for Missaghi. He warns that these lawyers risk significant reputational and financial damage.
8. Law Society’s Response
Amy Lewis, a spokeswoman for the Law Society of Ontario, stated that the society reports criminal activity to the police and encourages lawyers who are threatened to report such incidents. However, Lewis noted that the Law Society no longer publishes public warnings about non-lawyer fraudsters.
9. Legal and Ethical Considerations
Legal regulators in Canada have issued warnings about mortgage fraud and advised lawyers to be cautious about questionable investment schemes. Christian Leuprecht, a security expert at Queen’s University, emphasizes that disbarment sends a strong message about ethical practices.
10. Specific Cases of Involvement
Several lawyers involved with Missaghi have faced scrutiny and disciplinary actions:
- Norman Silver: Faced allegations of facilitating mortgage fraud and surrendered his license.
- Golnaz Vakili: Disbarred in 2015 for involvement in a major fraud scheme.
- Jonathan Ricci: Had his license suspended for failing to cooperate with an investigation.
- Barry Polisuk: Suspended for one month in 2018 for facilitating fraudulent transactions.
- Rasik Mehta: Surrendered his license in 2019 after being threatened by Missaghi.
11. Impact on Victims
Alisa Pogorelovsky, whose husband was involved in the shooting that killed Missaghi, claims to have lost over $1 million in a 2022 mortgage investment scheme. Pogorelovsky has filed a complaint with the Law Society and launched a civil suit against Missaghi and his associates.
12. Ongoing Investigations and Legal Actions
The Law Society continues to investigate complaints related to Missaghi. In recent court rulings, Justice Lee Akazaki ordered the freezing of assets from Missaghi and his associates, with some remarks about potential conflicts of interest involving lawyers such as Frederick Yack.
13. Lawyer Responses
Lawyers implicated in these cases, including Frederick Yack and Shahryar Mazaheri, have not commented extensively, citing ongoing legal proceedings. Their involvement continues to be scrutinized as part of the broader investigation into Missaghi’s fraudulent activities.