Law Society seizes Toronto lawyer’s practice after $3-million goes missing
| 28/11/13 7:00 AM ET
Javad Heydary is under investigation by the Law Society of Upper Canada
The Law Society of Upper Canada has seized control of the legal practice of Javad Heydary, alleging the high profile Toronto litigator has left the country while some $3-million appears to be missing from his firm trust account.
In an ex parte court order obtained Nov. 25, the Law Society took control of the lawyer’s client files, records and trust accounts, and those of several professional corporations affiliated with him.
Most recently, Mr. Heydary had been representing condo owners in a dispute with the Trump Tower. He is also the man behind the Red Seal Notary business in downtown Toronto.
But he might be best known to Legal Post readers as the counsel for a group of plaintiffs from Chicago who are suing Toronto businessman Robert Hryniak for fraud. The plaintiffs obtained $2.1-million in two related actions on a summary judgment motion, but the Ontario Court of Appeal reversed one of those orders. The cases progressed to the Supreme Court of Canada, which heard arguments last March but reserved judgment earlier this year.
An affidavit by a law society counsel says Mr. Heydary had received a $3.6-million settlement on behalf clients named the Abuzours. A court ordered Mr. Heydary to transfer $2.1-million of the funds to a lawyer named Ray Thapar, and provide independent proof that the remaining $1.5-million was held in trust.
The affidavit says Mr. Heydary failed to comply with the order and left the country on Nov. 15. The law society affidavit says Mr. Haydary’s mixed trust account contains $319,000, some $3-million less than it is supposed to.