David Leslie Schaefer.
Image Credit: FACEBOOK: The Greater Vernon Chamber of Commerce
October 02, 2024 - 6:00 PM
A Vernon lawyer suspended earlier this year for professional misconduct is facing separate allegations from the Law Society.
According to a Sept. 26 amended BC Law Society citation, David Leslie Schaefer stands accused of having several conflicts of interest regarding a client, and a mortgage and real estate purchase dating back to 2007.
The Vernon-based lawyer is also alleged to have given "false or misleading" information he knew "or ought to have known" to a mortgage lender regarding a client.
The Law Society citation lists four separate instances all relating to the same client which it said constitute professional misconduct.
According to the citation, Schaefer acted in a conflict of interest regarding a real estate transaction in 2007. The legal regulator said he had a personal and financial interest in the property which contravenes the Law Society's rules.
Several years later in 2013, the Law Society said he told a mortgage lender he only dealt with the client at arm's length when he knew "or ought to have known" this wasn't true.
"This conduct constitutes professional misconduct or conduct unbecoming the profession," the Law Society said.
The citation said between 2013 and 2021 Schaefer's client took a mortgage on their property which he then borrowed.
"(Schaefer) acted in a conflict of interest by performing legal services when there was a substantial risk that your loyalty to or representation of (the client) would be materially and adversely affected by your interest in the mortgage," the Law Society said.
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The regulator also said between 2015 and 2017 the lawyer purchased a property from the client and provided legal services.
"There was a substantial risk that your loyalty to or representation of (the client) would be materially and adversely affected by your interest in the property," the citation read.
The regulator said he failed to make sure the transaction was fair and reasonable for the client and failed to make sure the client had independent legal representation.
Schaefer began practicing law in 1985 and was the senior partner in a Vernon law firm from 2015 to 2020 before he began working for himself.
Earlier this year, Schaefer was suspended for one month and ordered to pay $1,000 for "inadvertently" withdrawing almost $9,000 from an elderly couple's account over which he had power of attorney.
The investigation was triggered after Schaefer's former law partner told the regulator.
Over the space of a year, the lawyer withdrew $9,903 from the elderly clients' accounts in 33 separate withdrawals, but only kept the receipts for $1,000.
However, the Law Society found that Schaefer's business account was from the same bank and had the same colour debit card with the same pin. The lawyer had accidentally used the wrong card.
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Once he realized the error he paid the money back, before the Law Society began their investigation.
The Law Society described his behaviour as "cavalier and sloppy."
"Practising law is a significant privilege afforded to a small percentage of society. With that privilege comes considerable responsibilities. There is no room for a cavalier attitude or sloppy practice. This is especially true when the lawyer’s clients are peculiarly vulnerable. The type of conduct exhibited by (Schaefer) undermines the public’s trust in lawyers," the Law Society said in the January 2024 decision.
The lawyer is a past president of the Greater Vernon Chamber of Commerce, and been involved with the Downtown Vernon Association, the Vernon Bar Association and has served as a director with the Funtastic Sports Society.
When reached for comment, Schaefer referred iNFOnews.ca to his lawyer, who wasn't immediately available for comment.
None of the current allegations have been proven.
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