London lawyer disbarred for misappropriating nearly $100K from estate trust fund: tribunal

A London, Ont., lawyer has been disbarred after it was found he misappropriated nearly $100,000 for his own benefit from an estate trust fund he oversaw, according to a recent ruling by the Law Society of Ontario's tribunal.

The lawyer, James Douglas Skinner, was a partner at the London-based law firm Harrison Pensa at the time, and had been the trustee and lawyer of record for the estate involved, according to a copy of the tribunal decision, dated Nov. 8. The hearing itself was held in August.

Licensed to practice law since 1991, the 59-year-old focused primarily on commercial and estate litigation at the firm, where he was hired in 1999, according to the tribunal ruling and an archived version of Harrison Pensa's website.

According to an agreed statement of facts, the plot lasted from early October 2018 to late February 2020, and saw Skinner authorize 21 cheques totalling $98,600 that were drawn from trust funds held on the estate's behalf in Harrison Pensa's mixed trust account.

Skinner made the cheques out to his spouse, and gave cheque requisitions to the firm's accounting department that included no purpose or invoice, the tribunal decision says. After being returned to Skinner, the cheques were deposited into an account he shared with his spouse.

During this time, his spouse was not aware of the scheme, and did not know that cheques had been made out in her name, the tribunal decision says. Harrison Pensa only learned of it after a beneficiary of the estate requested a financial update.

Questioned by the firm in August 2021, Skinner attested that the money went toward the cleaning and repairs of estate property that was later sold, but later confessed after he was pressed for more details. He was escorted from the firm and resigned a day later, the tribunal decision says.

In a statement, a Harrison Pensa spokesperson said the firm expects and demands the highest standards of professional conduct from its members, and does not tolerate non-compliance.

"As soon as firm management discovered the inappropriate conduct of Mr. Skinner, in his role as an estate trustee, he was escorted from the firm," the statement said, adding that those impacted were immediately notified, along with the Law Society of Ontario.

"The firm has cooperated at every step of the investigation and fully supports the decisions of the Law Society of Ontario."

CBC News sent a message to Skinner's LinkedIn page seeking comment, but received no response by publishing time. Two messages left with a phone number on Skinner's since-removed Harrison Pensa profile were also not returned.

Skinner didn't claim the funds as compensation for his role with the estate, but even so, any funds would have belonged to the law firm based on its partnership agreement. The estate was later reimbursed with funds from Skinner's capital account, the tribunal decision says.

As a result of the ruling, Skinner's license to practice law was revoked, and he was ordered to pay the Law Society of Ontario $2,000 by Feb. 25, 2024. He was also ordered to comply with their guidelines for lawyers whose licences are revoked.

Skinner can appeal his disbarment through The Law Society Tribunal Appeal Division. He hadn't filed an appeal as of Tuesday afternoon, according to a tribunal spokesperson.

The August hearing was the second time Skinner has appeared before the tribunal following an apparent unrelated matter from 2021 that resulted in a month-long suspension of his law licence.

In that case, the tribunal found Skinner committed professional misconduct after he failed to respond "promptly and completely" to requests by the Law Society of Ontario for information stemming from an unspecified 2019 complaint about his services. 

He was also ordered to pay the Law Society of Ontario $4,500.