Family Law Practice Points from the Ontario Court of Appeal

GEO CASUALIn a case from Ontario, Perri v. Perri 2017 ONCA 1001, the Court of Appeal considered the husband’s arguments that an order for lump sum spousal support for his wife constituted an error in law. The parties had been married for 22 years and had 2 children.

The appeal court noted that the parties had agreed that lump sum support was preferable to monthly payments as their post-marital relationship was marked by animosity.

While the Court dismissed the husband’s appeal, finding that compensatory factors were in play, it did correct two legal errors. The first was the lower court’s order that the wife be designated as the sole irrevocable beneficiary of the husband’s life insurance policy. The error was that there was no indication of an end date with respect to the beneficiary designation. The appeal court inserted the following language to that order:

“until the lump sum spousal support is paid and as security for lump sum spousal
support.”

The second legal error was as a result of the Brampton court registry insisting that counsel include a paragraph in the order that the husband was under a continuing obligation to provide annual updated financial information to his wife. The appeal court confirmed that such disclosure was not required where the order for support was lump sum.

Two practice points arise from this case:

1. The first is that a life insurance designation in a support order is intended to provide security to a receipient spouse or parent in the event of the untimely death of a payor. It is not intended to be a transfer of wealth upon a payor’s death.

2. The second is that while court registry staff are typically very knowledgable and helpful, they are not infallible. The notion of an ongoing disclosure requirement initiated by clerks, where no such order was made, is a stark example of why counsel should remember that it is their responsibility to enter an order that mirrors the court’s judgment or the court clerk’s notes.

Lawdiva aka Georgialee Lang

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Toronto Lawyer’s $2 Million Dollar Fraud Conviction Upheld

GEO#1Yesterday the Ontario Court of Appeal dismissed Toronto corporate lawyer, Remy Boghossian’s appeal from his 2015 conviction for an almost $2 million dollar fraud on the Royal Bank of Canada. (R. v. Boghossian, 2017 ONCA 870 CanLII)

The scam involved Mr. Boghossian and two co-accused acquiring a forged TD Canada Trust bank draft for $1,895,751 in February 2011 from an unidentified bank insider at the Mississauga branch of the TD bank. The funds were then deposited into Mr. Boghossian’s trust account, whereafter he purchased, in two separate transactions, Australian-minted gold bullion from a company in Montreal.

Mr. Boghossian’s lawyer argued that his client purchased the gold on behalf of a client, Omar Ali, who was a real estate developer going through a divorce who wanted to hide the money from his wife. He asserted that his client was a victim of the scam and had been duped into participating. The trial judge found that Mr. Ali did not exist and was created to advance the fraud. He held that a strong circumstantial case had been established and that the three accused acted together to knowingly defraud the Royal Bank by presenting a forged TD bank draft.

The court heard that Boghossian’s two accomplices tried to sell some of the gold bars, but a wary gold dealer recognized the “kangaroo” logo on the bars and contacted the police.

What remains a mystery is who the insider at the TD Bank is and where the gold bars are now. Media reports indicate that the police have discontinued their investigation of these two matters.

Mr. Boghossian also appealed his 3 1/2 year sentence, arguing that as his co-accused only received 3 years each, his sentence should be reduced to three years. The Court of Appeal dismissed the sentence appeal saying:

“In our view, the extra six months awarded the appellant does not raise parity concerns. The appellant was a lawyer. His status as a lawyer and the role his status as a lawyer played in the commission of the offence justified treating this as an aggravating factor, warranting a somewhat higher sentence for the appellant. We see no error in the sentence imposed.”

It is expected that the Law Society of Ontario will disbar Mr. Boghossian.

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