The Law Society of Saskatchewan has ruled North Battleford lawyer Kevan Migneault is guilty of several counts of conduct unbecoming a lawyer.
A hearing committee looking into allegations against Migneault found three counts to be “well founded,” while Migneault entered guilty pleas to five other allegations stemming from his representation of a client who had pled guilty to fraud.
The allegations primarily surround Migneault’s activities involving a client, Allan Moen, who had pled guilty on Oct. 27 of 2015 to defrauding investors out of funds in excess of $700,000. Moen was in turn sentenced to three years in prison.
The hearing committee ruled the most serious count against Migneault - that he did, through negligence and a failure to exercise due diligence, facilitate the commission of fraud or frauds by his client - was “well founded”.
According to the written decision, dated April 2 and released to the public May 17, Migneault had intended to plead guilty to the less serious allegation that he did allow himself to become the dupe of Moen. Acceptance of the guilty plea on this charge was deferred, however, given the ruling on the more serious count.
Two other complaints were also ruled as “well-founded”: that Migneault enabled the client to achieve an improper purpose by using his law firm and status as a lawyer to legitimize Moen’s fraudulent activities; and that Migneault did, through willful blindness or recklessness, involve himself in the investment offerings of his client and his affiliated corporations, to the general public when the client and his affiliated corporations were subject of a Cease Trade Order.
Migneault also entered pleas of guilty to five other conduct-unbecoming counts that were mostly related to trust accounting.
Those include failing to maintain proper books and records; withdrawing funds from trust in payment of fees and disbursements in a manner that was not authorized by the Law Society; using trust funds held for a purpose other than which was intended; entering into or continue, entering a debtor/creditor relationship with clients when his interests and those of his clients were in conflict; and misleading the Law Society by filing annual practice declarations stating that he had not loaned money to clients in those years when he knew that to be false.
In its ruling, the three-person Hearing Committee was critical of what it described as “recklessness” by Migneault in his relationship with the client.
“The Member’s overall approach to his relationship with Moen and Moen’s questionable activities is troubling,” the decision stated. “Notwithstanding the ambiguities that arise by virtue of the Member’s own inclination to risk and lose his own investments, as well as his occasional words of caution to potential investors, his ongoing willingness to facilitate Moen’s dubious business methods and demands on the Member’s firm cannot be excused. It is not an overstatement in these circumstances to characterize as recklessness the Member’s failure to make the necessary inquiries to ensure he was not supporting activities that would compromise his professional obligations.”
The decision comes after a lengthy investigation by the Law Society. Migneault has already been under an interim suspension from the practice of law since December of 2015.
The hearing took place last Nov. 8 in Regina. Migneault attended and conducted his own representation at that time. Afterwards, the committee adjourned to allow for written submissions.
They reconvened by conference call Feb. 1, and the hearing was concluded that day.
The full ruling, including the Agreed Statement of Facts in the matter, can be found on the Law Society’s website at https://www.lawsociety.sk.ca/.
The next step in the matter is for a penalty hearing to take place May 31 at 9:30 a.m. at the Maple Room, Ramada Plaza, Regina.
