The Law Society of Ontario has suspended the licence of another Toronto lawyer for his ties to accused serial fraudster Arash Missaghi, who was gunned down earlier this year by an aggrieved client.
The licence of Shahryar Mazaheri, the seventh lawyer to be penalized for working with the man, was suspended on an interlocutory basis in a Nov. 12 ruling by the society. It found that there were reasonable grounds to believe that allowing him to continue practising presented a “significant risk of harm to the public.”
A Law Society of Ontario (LSO) tribunal cited Mr. Mazaheri’s legal work, which tribunal members believed factored into an alleged real estate fraud that concluded in the shooting in which Mr. Missaghi, one of his associates and the gunman died.
“Mr. Mazaheri did not dispute that a fraud occurred,” the tribunal ruling said. “His focus was on his involvement – he denies actual or constructive knowledge of the alleged fraud.”
In an e-mail, LSO spokesperson Lisa Hall said suspended licensees are prohibited from practising law or providing and promoting legal services while the suspension remains in effect. The interlocutory suspension is one that is in effect while the law society finishes a continuing investigation.
The society launched hearings last summer seeking interim licence suspensions for Mr. Mazaheri and another lawyer, Frederick Yack, for alleged work they did for Mr. Missaghi.
Mr. Yack also faces allegations that he knowingly failed to prevent dishonesty, fraud, crime or illegal conduct, among other accusations, according to Law Society records. He consented to an interlocutory licence suspension in September and it was formalized in the Nov. 12 decision, alongside that of Mr. Mazaheri.
On June 17, 46-year-old Alan Kats shot and killed 54-year-old Mr. Missaghi and his associate, Samira Yousefi, for allegedly defrauding his family of more than $1-million in life savings. In his suicide note, Mr. Kats also placed blame on Mr. Yack and Mr. Mazaheri.
The LSO tribunal initiated proceedings against Mr. Mazaheri last August, but hearings dragged on for months, with Mr. Mazaheri requesting new counsel and adjournments on multiple occasions.
In its decision, the Law Society tribunal said that if Mr. Mazaheri were allowed to continue as a lawyer, he might not live up to his “professional obligations to avoid assisting in fraud.”
“His integrity is impugned,” the tribunal said.
When contacted by The Globe and Mail on Thursday, Mr. Mazaheri denied these findings. “They never said I’m a danger to the public,” he said. “Do not call me.”
The law society is examining a chain of real estate transactions that started in 2022, when a Toronto couple were encouraged to hire lawyers allegedly favourable to Mr. Missaghi to structure mortgage investments. The couple later complained that they had been bilked out of $1.4-million.
“It is not difficult to conclude, for the purpose of this motion, there was a fraud,” the tribunal said in its Nov. 12 ruling.
The LSO tribunal ruling says that Mr. Mazaheri considered himself a litigator, and not a real estate lawyer, but still agreed to route the mortgage investment money. The money went toward corporate entities controlled by Mr. Missaghi. Mr. Mazaheri had worked with Mr. Missaghi since 2021.
When the deal broke down, the couple in question – Mr. Kats and his wife, Alisa Pogorelovsky – began legal proceedings. But months before Mr. Kats shot Mr. Missaghi, the legal claims had not recovered the funds and the couple spent thousands in legal fees.
In its ruling, the tribunal raised questions about the credibility of Mr. Mazaheri’s submitted documents, notes and recollections.
The lawyer’s licence suspension is provisional and not permanent. The LSO tribunal findings can be challenged by Mr. Mazaheri at a subsequent hearing if he wants to recover his licence.
Editor’s note: An earlier version of this article incorrectly reported the month of Mr. Yack's interlocutory licence suspension as October. This version has been corrected.