A Toronto attorney, who co-established a law practice with his spouse, faced trial on Monday for fraud following a significant collapse of the firm three years ago. Nicholas Cartel, aged 62, is accused of committing fraud over $5,000 by allegedly issuing a $300,000 bad check to cover up a deficit in the trust account of Cartel & Bui LLP, the law firm managed by him and his wife.
The purported fraud took place in February 2023 during a property transaction handled by Cartel & Bui LLP. The firm had to disburse $2.22 million to a client, but lacked adequate funds in its trust account due to embezzlement by Bui over an extended period. Bui is currently facing 32 criminal charges linked to the embezzlement.
Following the February 2023 incident, multiple property owners and buyers in southern Ontario encountered difficulties finalizing real estate transactions as funds were missing from the Cartel & Bui trust account. One couple lost $2.16 million intended for a home purchase in Toronto, while other clients or insurers faced losses of up to $729,000.
Cartel denies involvement in the other cases related to missing funds and asserts his innocence. He contends that the misappropriation of client funds occurred in the real estate division managed by his wife, Singa Bui, while he focused on a separate legal practice within the firm dealing with class actions and litigation.
Regarding the fraud charge concerning the bad check, Cartel acknowledges writing it but argues that his actions did not constitute fraud. He alleges that prosecutors have withheld crucial evidence and presented misleading information. At the trial’s commencement, Cartel expressed his intention to file an application under the Charter of Rights and Freedoms to halt his criminal charge.
During the trial’s opening in Toronto’s provincial court, a witness from the Royal Bank of Canada testified about the personal chequing account connected to the $300,000 check. The witness revealed that the account, registered under Cartel’s name, had a negative balance for several months preceding the check issuance.
Cartel previously engaged criminal lawyer Richard Posner for his defense but terminated the arrangement over disagreements regarding fees and trial tactics. He is now representing himself in the criminal trial. Despite facing multiple challenges, Cartel remains steadfast in contesting the accusations against him as the legal proceedings continue.
