Couple sentenced for contempt after evading court orders on embezzlement scandal
A Toronto lawyer couple is headed to jail after months of ignoring court orders to disclose information on millions of dollars missing from their law firm’s trust account.
Husband and wife Nicholas Cartel and Singa Bui, partners at the now-defunct Cartel & Bui LLP, were sentenced to 30 days each in provincial custody on contempt of court charges, CBC News reported.
The couple’s firm allegedly embezzled over $6.5 million between April and December 2023. The missing money belongs to 25 homebuyers and sellers who entrusted the firm with their funds between April and December 2023.
In his ruling on Friday, Superior Court Justice William Chalmers said during the Friday hearing that Cartel and Bui had ignored repeated court orders and continued to misrepresent facts to the court.
“Mr. Cartel and Ms. Bui have not shown remorse for their conduct,” Chalmers said, adding that the two “ignored court orders and made misrepresentations to the court.”
The judge decided against simply issuing fines for contempt, since the two lawyers already owe the plaintiffs millions of dollars. Multiple plaintiffs have already secured default judgments against the couple
Cartel, who was immediately taken into custody, will serve his sentence first, while Bui will begin hers on November 26.
Bui’s recent travel history became a focal point in court after she finally surrendered her passport. Court records showed that she travelled to Zurich and Milan around the time most of the funds disappeared, and she later visited Portugal, despite a court order requiring her to remain within jurisdiction.
Bui’s lawyer, Andrew Wray, said the trip to Portugal was intended to help her mental health, arranged by a friend to “let her sleep”, a claim Chalmers found difficult to reconcile with her ongoing defiance of court orders.
"She was apparently able to travel to Portugal but unable to … comply with the court orders," the judge said.
Cartel, representing himself, attempted a last-minute submission of nearly 400 pages of documents, which the judge dismissed as more evidence of his “contemptuous behaviour."
When Cartel asked if he would have access to a laptop to “work on his case” while jailed, the judge responded that Cartel would need to “figure it out.”
The Law Society of Ontario provisionally suspended both Cartel and Bui in April, while the Toronto Police’s fraud squad continues its investigation.
Cartel acknowledged his financial liability but has denied involvement in the embezzlement, attributing the responsibility to his wife. Bui, through her lawyer, has similarly asserted Cartel’s non-involvement.
Read more: Toronto law firm accused of embezzling millions from homebuyers
Bui is scheduled to return to court on November 18, with the option to request a reduced sentence if she complies with the outstanding court orders. She may also apply to serve her sentence in a psychiatric facility. Cartel, likewise, may seek a reduction in his sentence if he clears his contempt while in custody.
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