A Toronto lawyer, Nicholas Cartel, is currently on trial for a fraud charge related to the collapse of a law firm he co-founded with his wife. The firm, Cartel & Bui LLP, faced financial turmoil when millions of dollars went missing from its trust account, leading to its spectacular downfall three years ago.
The charge against Cartel alleges that he intentionally wrote a $300,000 bad cheque in February 2023 to cover up a shortfall in the firm’s trust account. This incident occurred during a property sale transaction where the firm needed to pay out $2.22 million to a client but lacked sufficient funds due to ongoing embezzlement by Cartel’s wife, Singa Bui, who is facing separate criminal charges for the embezzlement.
The missing funds from the Cartel & Bui trust account caused issues for over 25 property owners and buyers in southern Ontario, resulting in failed real estate deals. One couple lost $2.16 million earmarked for a house purchase, while other clients and home-purchase insurers were also affected financially.
Cartel, who denies involvement in the other cases related to missing funds, asserts that the embezzlement occurred in the real estate division managed by his wife, while he focused on class actions and litigation at the firm. Despite admitting to writing the bad cheque, Cartel claims his actions did not constitute fraud and accuses prosecutors of withholding evidence and misrepresenting facts.
During the trial, bank employees testified about the cheque and account records. The prosecution presented evidence showing that Cartel’s personal account had a negative balance before the cheque was issued, raising concerns about its validity and the risk to the receiving bank.
Cartel had previously spent 30 days in jail for contempt of court related to the missing funds investigation. He also faces default judgments for millions of dollars obtained by former clients, with unsuccessful attempts to overturn some of these judgments.
Furthermore, Cartel’s legal defense took a turn when he parted ways with his criminal lawyer over fee disputes and trial strategies. He is currently representing himself in the ongoing criminal trial, as his law license has been provisionally suspended since April 2024 by the Law Society of Ontario, which has lodged multiple disciplinary charges against him.
Singa Bui, Cartel’s wife and former co-founder of the law firm, was disbarred by the Law Society in December. The trial continues, with Cartel maintaining his innocence amidst legal challenges and mounting allegations.
