Peter Smiley, a lawyer acting for alleged victims suing Arash Missaghi and his associates, said that he welcomes the new hearings.Cole Burston/The Globe and Mail
The Law Society of Ontario has started a process aimed at suspending the licences of two Toronto real-estate lawyers who worked with slain fraudster Arash Missaghi, alleging the move is necessary to protect the public.
The law society, which regulates the legal profession, issued a notice Friday saying it had convened expedited hearings for next week and noted that allowing the two lawyers to continue working would be “a significant risk of harm to members of the public.”
The move comes days after a Globe and Mail investigation detailed how the two lawyers had faced allegations but never professional sanctions. Five other lawyers who had earlier worked for Mr. Missaghi had been disciplined or disbarred.
“An interlocutory suspension is a sledge hammer,” said Doug Bourassa, a lawyer who has raised several red flags about Mr. Missaghi in the past.
Mr. Missaghi, a serial fraudster who threatened lawyers who worked for him, was shot dead along with a colleague earlier this summer at his Toronto office by a gunman who alleged he was one of Mr. Missaghi’s victims. The gunman also killed himself.
For years, Mr. Missaghi was named in a series of schemes, victimizing dozens of people, but he received no penalties from the courts and he continued to find lawyers willing to work with him.
The two accused lawyers, Frederick Yack and Shahryar Mazaheri, are to appear via videolink at tribunal hearings scheduled for Aug. 20 and 21.
According to the law society’s tribunal branch, Mr. Yack is the subject of three continuing law society complaint investigations that include allegations of five potential offences. The regulator’s charge sheets say he may have knowingly failed to prevent dishonesty, fraud, crime or illegal conduct and he may have misappropriated or mishandled money placed in trust, among other allegations.
Mr. Yack and his lawyer Aaron Hershtal could not be reached for comment Friday. But previously they have told The Globe that Mr. Yack denies allegations similar to the ones he now faces at tribunal.
The law society filings note Mr. Mazaheri is the subject of a single continuing complaint investigation that includes allegations that he may have knowingly failed to prevent dishonesty, fraud, crime or illegal conduct; and that he may have failed to prevent unauthorized provision of legal services.
When Mr. Mazaheri was reached by telephone at his law office by The Globe, he said that “there’s no reason for me to comment.” Later, his lawyer, Samara Secter, said in an e-mail that he denies the allegations and will defend against them.
A tribunal will weigh evidence against the lawyers before deciding what, if any, disciplinary action is warranted.
“Until an order has been made, lawyers involved in interlocutory hearings can still practice,” said Ivy Johnson for the Law Society’s tribunal.
Both lawyers have previously been named as defendants in several unproven civil lawsuits involving their alleged work for Mr. Missaghi
In June, Mr. Missaghi was shot dead in his office at 3 p.m. alongside his associate Samira Yousefi. Family members have identified the shooter as Alan Kats, who had turned the gun on himself.
Following the shooting, Mr. Kats’s wife Alisa Pogorelovsky told reporters she and her husband had lost their life savings in real estate dealings. The couple initiated a fraud lawsuit against Mr. Missaghi, Ms. Yousefi, Mr. Yack, Mr. Mazaheri and others. The widow has said that her husband penned a note in advance of the fatal shooting naming all four people, including the two lawyers, as potential targets.
Peter Smiley, a lawyer who has acted for a number of victims suing Mr. Missaghi and his alleged associates, said that he welcomes the new hearings.
“I’m delighted the law society is treating these allegations with the seriousness they deserve,” he said.
Editor’s note: A previous version of this article incorrectly stated that lawyer Peter Smiley acting for Alisa Pogorelovsky. He is not acting for Ms. Pogorelovsky, but has acted for a handful of others suing Arash Missaghi and his associates. This version has been updated.