The Richmond BC based lawyer, Spencer May, recently found himself amidst a legal entanglement involving his clients engaging in transactions shrouded in speculation. It seems that the real estate deals unfolded under the umbrella of questionable practices that the Law Society of BC found deeply disconcerting.

Legal practitioners are encouraged, in light of such instances, to uphold their ethical obligations and ensure that their involvement with clients doesn’t inadvertently embroil them in illicit operations such as real estate fraud or money laundering.

Allegations of professional misconduct

The British Columbia Court of Appeal heard Spencer May’s appeal, as he challenged allegations of professional misconduct. Unfortunately for him, the majority of his defence was dismissed. The shady deals were alleged to have involved a money laundering scheme and employing fraudulent building liens as a financial smokescreen.

In the summer of 2021, BC’s Law Society hearing panel raised serious accusations against Spencer May, charging him with misguiding the court through the omission of vital information, such as the whereabouts of his clients’ affiliates. His proficiency in managing transactions was also called into question.

A 2018 newspaper article alleged that May’s clients used deceitful builder’s liens on properties to repay loans – a strategy suspected of being a cover for money laundering. This disclosure sparked the Law Society’s investigative interest, leading to a formal hearing after the discovery of numerous anomalies within Spencer May’s law firm, Froh May and Rice LLP.

Froh May and Rice LLP

The clients of Froh May and Rice LLP conducted business under strange circumstances which invited suspicion. A particular transaction highlighted by the hearing panel involved an unseasoned builder lending US$200,000 through a third-party account situated in a Las Vegas hotel.

May’s lack of curiosity towards such an unusual occurrence was deemed unfitting by a legal practitioner, and he was further charged by the BC Law Society for intentionally concealing dubious information from the court.

The panel suggested that May’s omission of details fostered a misrepresentation to the court, making it seem that the whereabouts of his client in British Columbia were not in doubt. Still, they did not conclude that May had been dishonest. Both judgements acknowledged May’s heavy reliance on translations from his paralegal to interact with his clients.

Appeal for Richmond Lawyer

May responded to the newspaper article, declaring his intention to sever his professional relationship with the clients implicated in the controversy.

Justice Mary Saunders, presiding over the appeal, concurred with the panel’s conclusions regarding most of the proven allegations, except for one asserting that May had used a falsified affidavit.

A counter-appeal by the society, however, reinstated an accusation against May for relying on a false or misleading affidavit by his paralegal concerning a supposed contract between clients.

The decision by the panel highlighted the gravity of the misconduct, reminding lawyers in BC to exercise caution as their routine transactions could unknowingly become conduits for illegal activities.

Having joined the BC bar in May 2007, and being a partner at Campbell Froh May and Rice LLP since October 2015, May’s reputation is hanging in the balance. As of now, he has not been subjected to a disbarment hearing.