Tejinder Dhillon

In a striking blow to professional integrity, Tejinder Singh Dhillon, a British Columbia lawyer, faced disbarment on February 20, as declared by the Law Society of BC. This severe measure was taken after a detailed investigation into Dhillon's misuse of trust accounts related to real estate ventures. At the heart of the controversy was the misappropriation of $1.5 million from client funds, revealing a disturbing pattern of unethical behavior.

Dhillon's misconduct was multifaceted, involving unauthorized transfers and payments that benefited his interests. In one notable instance from March 2015, he facilitated the transfer of $1 million from a client's trust account to a numbered company, where he held positions of authority. This act of misconduct was compounded by another episode where he directed funds to a relative engaged in a townhouse project connected to the same company.

The investigation unearthed further instances of negligence, including Dhillon's haphazard management of trust accounts. He exhibited a lackadaisical approach by signing over blank trust cheques and rectifying account shortfalls with funds from other clients. Moreover, his ethical lapses extended to conflicts of interest, notably when he permitted a company under his wife's beneficial ownership to extend a $50,000 loan to his clients.

Dhillon's disregard for professional obligations didn't stop there. He violated agreements with commercial entities and the Law Society, including a trust supervision agreement from November 2018. Despite these breaches, it was noted that all misappropriated funds were eventually restored.

The panel, referencing a previous case, emphasized that misappropriating client funds represented a fundamental betrayal of trust. They argued that the severity of the consequences should mirror the seriousness of the misconduct to maintain public confidence in the legal profession. The decision to disbar Dhillon took into account not only his current misdeeds but also his past behavior, which included a 2017 conduct review for unprofessional and aggressive interactions with mortgage company staff.

Furthermore, Dhillon was ordered to cover $31,501 in costs and disbursements related to the proceedings. At the time of his hearing in September 2022, he had already ceased practicing law, having resigned in June 2019. However, the Law Society proceeded with disbarment to safeguard the public interest, highlighting the need for stringent measures to prevent future misconduct.

This case sheds light on the broader issue of trust account regulation within the legal profession. Following a Supreme Court of Canada decision in 2015, lawyer's trust accounts were exempted from the reporting requirements under Canada's anti-money laundering legislation. This exemption, based on the principle of solicitor-client privilege, places the onus on the legal profession itself to monitor and regulate these accounts. The Law Society of BC has since intensified its oversight efforts, especially in the wake of revelations from B.C.'s money laundering inquiry, aiming to bolster the integrity of legal practices and protect public interest.