THUNDER BAY — The Law Society of Ontario has revoked the licence of local lawyer Deborah Anne Humphreys on the grounds of professional misconduct.
The ruling, released Monday by a three-person tribunal, was made after a hearing in June where the law society alleged that between 2019 and 2022 Humphreys had removed $148,000 from her trust account without her clients' authorization.
All the money was eventually returned.
Humphreys was also found to have practised law while under suspension.
She had a clean discipline record during her 29 years of practice, and testified she was an honest lawyer who acted with integrity but had mismanaged her bookkeeping responsibilities.
An LSO investigation resulted from a spot audit rather than from any complaint from a client, former client, or member of the public.
Humphreys acknowledged her responsibility for the poor state of her bookkeeping records, acknowledged making posting errors, and said she had struggled to understand the accounting software.
She also submitted that her departure to sole practice in real estate law in 2018 had happened at a difficult time for her, but that she never lacked sufficient funds in trust to close any real estate or other transaction.
The tribunal, however, concluded she had knowingly transferred money from her trust account to her personal account repeatedly over two-and-a-half years.
"We find these transactions were not made in error, recklessly or negligently. The respondent knew she was making these unauthorized transfers for her benefit. The respondent did not object to this characterization of her conduct at the hearing," it stated in its written decision. "We are satisfied that the withdrawal of funds constitutes misappropriation."
The tribunal said although Humphreys ultimately returned the funds to her trust account, this was after the transfers were discovered.
"This is not a mitigating factor that would warrant a lesser penalty," it wrote. "While we are mindful that the respondent may have been in a financially precarious situation, the trust account cannot be used as a personal line of credit in which to withdraw funds, even if they are to be put back."
The panel also found Humphreys engaged in professional misconduct by practising law after being suspended by the LSO in November 2022.
The suspension was issued because she had failed to abide by the requirements of an order the previous month to bring her trust books and records into full compliance within 30 days.
"The evidence supports the allegations that the respondent had clients, received fees, and engaged in legal work during her suspension," the tribunal concluded.
In addition to revoking her licence, the LSO initially planned to require Humphreys to pay its costs, amounting to $20,000.
But when she indicated she didn't have the funds, as she had been unemployed for about the past two years, the LSO agreed to reduce its costs by half.
