Husband Throws Wife Under The Bus When Their Law Firm Is At The Center Of Millions In Missing Client Funds
The couple lived a ‘fairly extravagant’ lifestyle.
Canadian married couple/attorneys Nicholas Cartel and Singa Bui are in a dilly of a pickle since their firm’s trust account that holds their clients’ money has turned up light. Like millions of dollars short. As a result, they’ve both had their law licenses suspended (provisionally), their firm is shuttered, there’s a police investigation, lenders are coming after their family home, oh, and there’s the small matter(s) of 15 lawsuits — to the tune of $15.5 million.
Last year, transactions involving the firm began began noting problems — seller mortgages weren’t being paid off despite the buyers putting the funds in the firm’s trust account, or sums of money owed by the firm related to deals were not being paid. The majority of the missing funds stem from the real estate practice of Bui. Indeed, Cartel has denied any wrongdoing, claiming he never had any wrong in the financial management of the firm, had a separate non-real estate practice, and did not have access to the trust account.
As reported by CBC Canada:
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Bui appeared to shoulder the blame for the missing money, at least initially. In a letter to the Law Society of Ontario dated Dec. 1, 2023, a lawyer on her behalf said that Bui was “compelled to advise the Law Society of the improper transfer of trust funds held in trust by Cartel & Bui LLP. Ms. Bui advises that her partner, Nicholas Cartel, is not responsible for the improper transferring of trust funds, nor is any other associate or employee of the firm.”
However, on April 26, the Law Society of Ontario decided to suspend both attorneys while it investigates what happened to the funds. Though reports suggest the money was used to fund an “extravagant” lifestyle:
CBC News has obtained court and law society documents suggesting their clients’ cash was used to pay the couple’s own mortgages, credit card bills and business taxes. The records show Cartel requested a judge authorize living expenses, including mortgage payments, of $30,655 a month, and the judge called the couple’s lifestyle “fairly extravagant.”
Cartel says he is “actively co-operating with all parties and oversight authorities and an auditor … to ensure a comprehensive review of any incomplete transactions and accounting issues.” However, the Law Society found some problematic behavior on his part.
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But according to the law society’s decision to provisionally suspend him, Cartel “appears to have misled” another lawyer who was trying to track down money on behalf of a client, did not take reasonable steps to investigate when faced with evidence his firm’s finances were awry, and failed to deliver bank account statements demanded by a law society auditor.
There’s also an issue of civil contempt facing the couple. In a civil suit stemming from a real estate transaction, the couple has allegedly failed to meet all their discovery obligations. Again, Cartel tried to distance himself from his wife’s actions — something Justice William Chalmers was pretty skeptical of.
“Six million dollars goes missing. Goes into her account. Did she pay for nice gifts for you? Did you buy a car that she paid for? Did she pay mortgage payments? How can you not know, when you’re living with her and you’ve got a home together and you’ve got children together, where $6 million went?”
Cartel also told the court his wife has been hospitalized for several months.
Cartel reportedly told CBC he was working to “make whole” those who are out money — even potentially using his own funds to do so. However, the victims are still waiting on their missing funds.
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Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or Mastodon @Kathryn1@mastodon.social.
