Conservative MP Devinder Shory And 16 Other Lawyers Bailed Out By Alta Lawyers Insurance Assc. in Alleged Fraud Case With BMO
Corruption in Canada 's Conservative government is being disclosed so fast and furious at the moment, that some of the smaller cases are being overshadowed by the larger Senate scandal. Here's another example of how some elected Conservative MP's have been operating:
"The Bank of Montreal has settled with all but a handful of the 160 parties it sued in connection with a sprawling case of alleged mortgage fraud in Alberta, CBC News has learned. The bank first detected a problem in 2006, when bank officials detected "irregularities" in some mortgages. Forensic accountants were hired to review the transactions, and the bank ultimately sued hundreds of people in connection with the alleged fraud.
BMO says hundreds of people, mostly new immigrants, were recruited to apply for about $70 million in falsely inflated mortgages involving more than 200 properties between 2006 and 2007. BMO contended the alleged fraud was carried out by 325 people, including mortgage brokers, appraisers, realtors, bank employees and lawyers.Sources tell CBC News all but a handful of the 160 parties sued have reached financial settlements with the bank.
Among those who settled are 17 Alberta lawyers BMO sued for negligence for their alleged roles in the scheme. Conservative MP Devinder Shory, who represents Calgary Northeast, is among those accused of providing legal work that supported the allegedly fraudulent mortgages, which BMO had argued could cost upward of $30 million.
All details of the settlement are confidential, but sources have revealed to CBC News that the insurance fund for lawyers, the Alberta Lawyers Insurance Association (ALIA) has agreed to pay $9.2 million to BMO to settle the case on behalf of all 17 lawyers named in the suit. Shory, who did not respond to a request for comment, has denied any wrongdoing in the past.
Four lawyers named in the lawsuit have been sanctioned by the Law Society of Alberta. They face a range of penalties from reprimand and a fine to disbarment.It's unclear whether seven others who are still members of the bar, including Devinder Shory, will face any sanctions from the law society. The other six lawyers have resigned, been disbarred, or are not practising law for reasons unrelated to the case."
CBC.ca
Postscript:
You see .. in Canada there are two sets of 'rules'. One for the rich and affluent and one for the small guy. We live in a country where our Conservative government will put a teenager in jail for growing three or more cannabis plants (the mandatory minimum sentence) but lawyers and MP's who get caught defrauding $30 million from BMO merely have to pay it back ... no fault ... no charges.
It doesn't sound like they even had to pay it back. Their professional insurer apparently picked up the tab.
There is a clear difference between fraud and negligence but this brief report suggests the distinction might have been pretty thin for some of these lawyers.
In British Columbia, the insurer covers negligence but not fraud. The Law Society "special fund" compensates the victims for losses from fraud.
I don't know but something sounds fishy in the way the insurer picked up the tab for lawyers who resigned or were disbarred.
Posted by
The Mound of Sound |
11:30 am, June 04, 2013