BC counsel agrees to five-month suspension for breach of trust

Vernon lawyer M. Shane Dugas has agreed to a five-month suspension with the Law Society of BC after admitting gross negligence in the management of his trust accounts.

Dugas’ wide range of admitted wrongdoing included moving more than $1.4 million in rent funds for a corporate client through his trust account without performing legal services over a three-year period, according to a settlement agreement approved on 10 May but announced on 31 May.

Dugas represented the client in foreclosure proceedings initiated by a bank. At the time Dugas received the rent funds, he knew that the company’s bank accounts had been frozen due to the proceedings and that he had not received a $3.2 million loan from the bank.

Among his other violations of legal practice standards, Dugas also used his personal bank accounts for client business, managed trust breaches, failed to report those breaches to the company, failed to maintain proper accounting records and failed to remit taxes on time useful.

Moreover, Dugas conducted most of the transactions related to the firm through his personal account, which was jointly shared with his wife.

Dugas was previously disciplined by the company in 2013 for taking funds from a trust account for legal fees before issuing invoices.

Dugas will now only be allowed to operate a trust account with a second approved signatory who is a practicing attorney, the company said on May 31.

Dugas, a lawyer of 30 years, is said to have accepted responsibility for the wrongdoing.

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