B.C. lawyer who misappropriated $8M to fuel gambling addiction agrees to 7-year ban
A B.C. lawyer who withdrew more than $8 million in client funds from his firm's account over two years to feed his gambling addiction has admitted his misconduct and agreed to a seven-year ban from practising law.
Russell Sean McDonough entered a consent agreement with the Law Society of B.C. late last month, and the document was published online Friday.
In it, McDonough admitted to misappropriating a total of $8,075,152.80 across 34 occasions relating to 30 clients between Jan. 6, 2021 and Oct. 3, 2022.
Much of the money came from clients involved in real estate transactions, and in 29 instances, McDonough's conduct resulted in him breaching undertakings he had made in relation to those transactions, according to the consent agreement.
He also admitted to making false and misleading representations to a client, telling them that a "statutory holdback" of $50,000 was required, when it wasn't, so that he could misappropriate those funds.
In every instance, McDonough said in a letter to the law society that was partially reproduced in the consent agreement, the misappropriation was done to facilitate his gambling. He either directly gambled the diverted funds or he used them to pay down outstanding debts that had accumulated due to his gambling.
"The conduct I engaged in is inexcusable and contrary to the fundamental values that our legal system is based upon and those that I firmly believe in," the letter reads, as excerpted in the consent agreement.
"I take full responsibility for my actions and intend to remain accountable to those affected directly or indirectly."
McDonough's pattern, according to the consent agreement, was to pay expenses for which misappropriated funds had been held in trust by misappropriating funds from other clients to cover them. He also applied a total of $308,000 in gambling winnings toward the shortfall.
A little more than $6 million of the roughly $8 million shortage in his trust account was made up for in this way, the consent agreement indicates, while the rest was paid out by the law society's Lawyers Indemnity Fund.
All of the clients and entities that were owed money from McDonough's trust account ultimately received their payments.
According to the consent agreement, McDonough was diagnosed with a gambling addiction in October 2022 and attended a residential treatment program in November and December of that year.
A discharge report from that program indicates that, with continued care, McDonough's "prognosis is good" for long-term abstinence from gambling in the future, according to the consent agreement.
"The lawyer is remorseful and is committed to his recovery," the document concludes. "He does not intend to ever gamble again. The lawyer accepted responsibility for his actions at an early stage of the investigation, and candidly admitted all of his misconduct. He has continued to engage in various treatment programs and monitoring, and has successfully abstained from gambling since October 2022."
In addition to agreeing not to practise law for seven years, McDonough also agreed not to apply for reinstatement to the law society of B.C. or membership in any other law society in Canada until Aug. 1, 2030, and not to apply for membership in any other law society without first notifying the B.C. society.
If you or someone you love is suffering from a gambling addiction, help is available. The B.C. government maintains a toll-free gambling support line that is always in operation at 1-888-795-6111. You can also request help online at gamblingsupportbc.ca.
CTVNews.ca Top Stories
'We are declaring our readiness': No decision made yet as Poland declares it's ready to host nuclear weapons
Polish President Andrzej Duda says while no decision has been made around whether Poland will host nuclear weapons as part of an expansion of the NATO alliance’s nuclear sharing program, his country is willing and prepared to do so.
Deadly six-vehicle crash on Highway 400 sparked by road rage incident
One person was killed in a six-vehicle crash on Highway 400 in Innisfil Friday evening.
Invasive and toxic hammerhead worms make themselves at home in Ontario
Ontario is now home to an invasive and toxic worm species that can grow up to three feet long and can be dangerous to small animals and pets.
First court appearance for boy and girl charged in death of Halifax 16-year-old
A girl and a boy, both 14 years old, made their first appearance today in a Halifax courtroom, where they each face a second-degree murder charge in the stabbing death of a 16-year-old high school student.
Central Alberta queer groups react to request from Red Deer-South to reinstate Jennifer Johnson to UCP caucus
A number of LGBQT+2s groups in Central Alberta are pushing back against a request from the Red Deer South UCP constituency to reinstate MLA Jennifer Johnson into the UCP caucus.
Opinion I just don't get Taylor Swift
It's one thing to say you like Taylor Swift and her music, but don't blame CNN's AJ Willingham's when she says she just 'doesn't get' the global phenomenon.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
It's 30 years since apartheid ended. South Africa's celebrations are set against growing discontent
South Africa marked 30 years since the end of apartheid and the birth of its democracy with a ceremony in the capital Saturday that included a 21-gun salute and the waving of the nation's multicolored flag.
Last letters of pioneering climber who died on Everest reveal dark side of mountaineering
George Mallory is renowned for being one of the first British mountaineers to attempt to scale the dizzying heights of Mount Everest during the 1920s. Nearly a century later, newly digitized letters shed light on Mallory’s hopes and fears about ascending Everest.