Hamilton lawyer suspended for facilitating fraudulent mortgages

A Hamilton lawyer has been temporarily ordered off the job after a Law Society of Upper Canada investigation found he unintentionally facilitated three fraudulent mortgage transactions.

Philip Ugochukwu Okpala, who specializes in real estate law and civil litigation, received a twomonth suspension and has been ordered to pay $20,000 by the law society in relation to three fraudulent transactions.

“The lawyer failed to be on guard against being used as the tool or dupe of unscrupulous clients,” according to an order from the Law Society Tribunal earlier this month.

The reprimand, which also includes a one-year restriction on practising real estate law, a subsequent one-year period of supervision as well as mandatory professional development, was handed down earlier this month.

In its decision, a hearing panel found Okpala facilitated three fraudulent mortgage transactions and improperly structured four transactions for tax reasons between 2010 and 2012.

Okpala could not be reached for comment, but admitted to the professional misconduct and expressed “remorse and shame”, according to the Oct. 16 ruling.

Daniel Goldbloom, who represented Okpala at the hearing, said Okpala accepts the panel’s decision as a “fair one.”

“Throughout this process, he acknowledged that he made mistakes and took responsibility,” he said in an email. “He fiercely denied the law society’s allegations that he knowingly participated in dishonesty or fraud. The tribunal agreed with him.”

According to the decision, Okpala did not facilitate mortgage fraud intentionally but did it because “he was not competent to practise real estate law.”

“He did not recognize red flags of fraud or their implications,” the decision reads. “He did not disclose the red flags to his lender clients for the same reason.”

There is no evidence the lenders suffered any loss or Okpala enjoyed significant benefit from his actions, the decision says.

According to law society documents, Okpala, who is now in his mid-forties, emigrated from Nigeria with his wife and son in June 2003. He graduated from a five-year law school program at the University of Jos in Nigeria at the age of 26.

Okpala applied to the law society for entrance into the licensing process and passed his barrister and solicitor examinations in 2006.

After sending out almost 500 unsuccessful applications, Okpala obtained an articling position in a Burlington firm but did not complete the term because he could not afford the commute. He finished his articles in Hamilton.

Okpala’s “failures” can be partially chalked up to his lack of experience as well as being a new immigrant in Canada, the decision says.

“These difficulties are not uncommon for new immigrants but it is likely that Mr. Okpala’s difficulties have been compounded by racial and other discrimination,” it reads. The events took place between five and seven years ago.

“Since that time, Mr. Okpala has addressed and corrected all identified issues, and is committed to serving his clients to the highest standards,” Goldbloom said.