The recent death of Arash Missaghi in his Toronto office has brought to light a troubling history of fraud that spanned over two decades, victimizing numerous individuals without facing any legal consequences. Mr. Missaghi’s primary trade was fraudulent mortgage investments, as evidenced by multiple civil suits and criminal cases that ultimately collapsed. Despite being represented by at least seven real estate lawyers, some of whom were sanctioned by the Law Society of Ontario for their involvement in his schemes, Mr. Missaghi continued to find legal representation without difficulty.
The involvement of multiple lawyers in Mr. Missaghi’s fraudulent activities raises concerns about the risks that lawyers face when representing certain clients and the role of law societies in protecting both clients and legal professionals. Professor Andrew Flavelle Martin from the Schulich School of Law at Dalhousie University suggests that legal regulators may need to develop better warning systems to prevent lawyers from associating with individuals like Mr. Missaghi who have a history of exploiting legal professionals.
One such individual who claims to have been defrauded by Mr. Missaghi is Ali Alijanpour, an artist from Richmond Hill, Ontario. Mr. Alijanpour filed a complaint with the law society and emphasizes the crucial role that lawyers play in enabling fraudulent activities. He believes that without the assistance of lawyers, individuals like Mr. Missaghi would not be able to carry out their crimes effectively.
Law societies across Canada have issued warnings about the rise in mortgage fraud, cautioning lawyers about the severe consequences they may face if they are found to be involved in fraudulent activities. Records obtained by The Globe and Mail reveal the names of real estate lawyers who worked with Mr. Missaghi and were subsequently sanctioned by the Law Society of Ontario for their roles in facilitating mortgage fraud. In some instances, Mr. Missaghi even resorted to threatening these lawyers with physical harm.
The case of Mr. Missaghi highlights the challenges faced by law societies in monitoring and regulating lawyers who engage in unethical practices. Despite efforts to investigate complaints and take disciplinary actions against lawyers involved in fraudulent activities, the ability to prevent future occurrences remains a significant concern. The complex nature of mortgage fraud schemes and the involvement of multiple legal professionals make it difficult to detect and prevent such crimes effectively.
Individual lawyers who were implicated in Mr. Missaghi’s fraudulent activities faced varying degrees of penalties, from temporary license suspensions to disbarment. The cases of Norman Silver, Golnaz Vakili, Jonathane Ricci, Barry Polisuk, and Rasik Mehta serve as cautionary tales of the consequences that lawyers may face for their involvement in fraudulent schemes. The threat of reputational and financial harm looms large for legal professionals who choose to associate with individuals like Mr. Missaghi.
The tragic events surrounding Mr. Missaghi’s death, including the involvement of Vadim (Alan) Kats as the gunman, shed light on the devastating impact of fraudulent mortgage investments on individuals and their families. Alisa Pogorelovsky, Mr. Kats‘ widow, recounts the loss of over $1 million in a mortgage investment scheme orchestrated by Mr. Missaghi, leading to financial ruin and ultimately tragic consequences.
Ms. Pogorelovsky’s complaint to the Law Society of Ontario regarding lawyers Frederick Yack and Shahryar Mazaheri, who were named in her late husband’s suicide note, underscores the need for continued vigilance in holding legal professionals accountable for their actions. The ongoing investigation into the conduct of these lawyers and their potential involvement in fraudulent activities highlights the importance of regulatory bodies in safeguarding the interests of clients and maintaining the integrity of the legal profession.
In conclusion, the case of Arash Missaghi exposes the vulnerabilities within the legal system that allow individuals to perpetrate fraud with impunity. The collaboration between lawyers and fraudsters like Mr. Missaghi raises questions about the ethical responsibilities of legal professionals and the effectiveness of regulatory mechanisms in preventing financial crimes. Moving forward, it is essential for law societies to enhance their monitoring and warning systems to protect both clients and lawyers from falling victim to fraudulent schemes. Only through increased transparency, accountability, and ethical conduct can the legal profession uphold its integrity and serve the interests of justice.