Ontario Lawyers Gazette - The Law Society of Upper Canada

• failing to disclose to the trust company that he was acting forindividual “C” and individual “C”, in trust;• acting in conflict of interest by failing to protect the interestof the trust company who provided first mortgage financingby failing to disclose to the trust company that he was alsoacting for the vendor and that the properties were beingflipped at a profit;• he participated in a transaction whereby mortgage monies wereobtained and disbursed from his client, a trust company, in relationto the property at 40 Ossington Avenue, Toronto by:• failing to disclose to the trust company that the purchaseprice paid to a credit union for the property was less thanthe principal amount of the trust company's mortgage;• failing to disclose to the trust company the existence of theagreement of purchase and sale for the property betweenthe credit union and individual “A1” for $115,000;• failing to disclose to the trust company that on April 16,1996, two deeds of sale were registered on title to theproperty as follows:• the credit union to individual “A1” for theconsideration of $115,000;• individual “A1” to individual “D” for theconsideration of $195,000;• failing to disclose to the trust company that the mortgagefunds advanced were the only funds used to complete thetransaction, and, were partially disbursed to third parties,when those funds were intended to be paid on account ofthe purchase price of the property;• commissioning a statutory declaration from individual “D” onApril 2, 1996 that he knew, or ought to have known, falselystated that:• the down payment for the purchase of theproperty was from individual “D’s” ownresources and not borrowed;• there was no secondary financing on theproperty;• failing to disclose to the trust company that he wasalso acting for individual “A1” and individual “A”, intrust;• acting in conflict of interest by failing to protect theinterest of the trust company who provided firstmortgage financing by failing to disclose to the trustcompany that he was also acting for the vendor andthat the properties were being flipped at a profit;8