North Vancouver lawyer agrees to 15-year practice ban over misconduct

A North Vancouver lawyer has admitted to professional misconduct and agreed not to practise law for 15 years, according to the Law Society of British Columbia.

William Lorne Macdonald admitted to a variety of misconduct in an agreed statement of facts presented to the law society in September and accepted early last month.

Macdonald's undertaking not to practise law commenced on Wednesday.

Among the allegations Macdonald admitted to were making "false and/or inaccurate representations," "assisting in, encouraging, and/or facilitating dishonesty, crime or fraud," misuse of trust accounts and insufficient verification of clients' identities.

The specific circumstances of the misconduct are laid out in a document published on the law society's website.

All of the misconduct the lawyer admitted was related to two clients – identified in the document only as JM and KT – and various companies owned or controlled by them.

Macdonald admitted that he made representations he ought to have known were false when responding to an inquiry from a securities regulator.

He told the regulator there were no emails or agreements between a company incorporated in the British Virgin Islands and three other companies, despite having facilitated payments from his trust account to two of the companies and having prepared regulatory submissions about the third.

He also admitted to allowing funds from JM, KT and their companies to flow through his trust account in "objectively suspicious circumstances," without making reasonable inquiries about various transfers.

According to the law society document, Macdonald ought to have known that his trust account "was being used to facilitate unlawful or dishonest conduct," and he "assisted" JM and KT in "a fraudulent scheme to manipulate the securities market."

Notably, the suspicious transactions were allowed to continue even after Macdonald became aware of a U.S. Securities and Exchange Commission investigation and complaint involving his clients.

In a statement announcing Macdonald's suspension Wednesday, the law society said it accepted his proposal after considering the other conditions he agreed to.

In addition to agreeing not to practise for 15 years, Macdonald agreed not to apply to practise law anywhere in the world without first notifying the law society.

"If Macdonald applies for reinstatement after 15 years, he must demonstrate he is of good character and fitness to practice law at a mandatory credentials hearing and comply with any conditions imposed by the panel," the law society's statement reads.

"The Law Society recognizes that misconduct by lawyers that facilitates securities fraud poses significant risks to the public, and takes such matters very seriously. The Law Society appreciates the co-operation of the U.S. Securities and Exchange Commission in this investigation."