B.C. lawyer ‘failed to guard against becoming the tool of an unscrupulous client,' gets 2-month suspension
Robert L. Dick's suspension began Thursday, according to a news release from the Law Society of B.C.
The lawyer proposed a consent agreement to the society, in which he admitted to a variety of misconduct that took place from mid-2018 to November 2021, all of it related to the same client.
That client, identified in the document only as 'DC,' was someone Dick had known for roughly two decades. DC was an existing criminal law client of Dick's, and someone who – along with his associate 'GS' – was 'understood by the lawyer to be involved in the illicit cannabis industry.'
DC approached Dick about a plan to apply for a retail cannabis licence, and in early summer 2018, the lawyer, DC and GS all met with a consultant to discuss the provincial licensing process, according to the consent agreement.
The consultant expressed concern about the would-be applicants' history of involvement – and reported ongoing involvement – in the illegal cannabis market, and explained that such situations are often dealt with using a 'white knight' applicant.
'The lawyer understood that the 'white knight' applicant process involved using a purported applicant to cloak the identity of the true applicant,' the consent agreement reads.
DC brought his acquaintance – referred to as 'SB' – into the process to serve as the 'white knight.' SB was the sole director and shareholder of a company called NRC Ltd., which made the application for a licence to operate a non-medical cannabis retail store.
The consent agreement indicates Dick believed DC was the 'driving force' behind the venture, providing funding to SB and NRC as a 'silent partner.'
'The lawyer was aware that there would have to be dishonesty involved in preparing and submitting the licensing application to the province in order for the 'white knight' application to succeed,' the document reads.
'The lawyer made no inquiries to determine whether the true sources of funding for the
business were being disclosed to the province in the licensing application."
Dick represented NRC in negotiating a letter of intent to lease a property in New Westminster and in submitting a business plan to the city. While he took direction from DC when creating those documents, DC's name was not included in either one, according to the consent agreement.
Dick also appeared on behalf of NRC at a New Westminster public hearing on rezoning the location where the proposed cannabis store would be located. The document indicates he made no mention of DC in either his oral or written submissions.
Ultimately, both the provincial licensing application and the municipal rezoning process were successful.
NRC never opened its cannabis store, however, because of a dispute over unpaid rent. When the landlord told Dick he would not be renting to SB and NRC, he asked if the lawyer knew of anyone else who might be interested in leasing the premises.
According to the consent agreement, Dick referred the landlord to GS, who by that time was the owner and director of a different company that ran a cannabis store in Vancouver. By making this referral, Dick was acting against the interests of his client NRC.
This conflict of interest was one of the instances of misconduct Dick admitted in the consent agreement. He also admitted that he 'failed to be on guard against becoming the tool or dupe of an unscrupulous client or other persons,' failed to 'make reasonable inquiries about the circumstances,' and failed to 'decline to act or continue to act in the matter until there was a reasonable basis for believing that the nature and purpose of the business venture were legitimate.'
The law society's discipline committee accepted the consent agreement proposal, noting that Dick had no prior record of professional misconduct, was remorseful and did not gain any personal benefit, including legal fees, through his misconduct.
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