Suspended lawyer Shawn Beaver faces possibility of disbarment

The Law Society of Alberta is seeking to disbar a prominent Edmonton lawyer over alleged financial misconduct.

Shawn Beaver faces 12 disciplinary citationsincluding misappropriation of funds entrusted to him by several clients, breaching the accounting rules of the Law Society of Alberta, and failureto act with integrity in relation to the sale of property, which he owned with his former common-law wife,

His disciplinary hearing startedin EdmontonMonday.

Fourof the 12 citations are very seriousin nature and deal with the misappropriation of trust funds, saidShannaHunka, whois representing the Law Society of Alberta

Beaver's behaviourhad an impact on other lawyers, clients and his former firm, she added. At one point the firm failed to cover its monthly payroll, she said.

Beaver has admitted to three of the citations.Thoseinclude breaching the accounting rules of the Law Society of Alberta and failing to meet the financial obligations in relation to his practice.

The hearing committeewas told that in May 2015, Beaver's once prominent firm, Beaver, Leebody and Associates, wasin financial trouble

"The evidence will show that Mr. Beaver took a total of $115,000 in 2014," said Hunka "It was for either his general account for the law firm, or for his personal account."

Hunka told the hearing that alawyer at the former firm will testify that he had collected trustmoney for his nephew and niece to be used for a future education fund, but that the "money was all gone."

The law societyallegesthat between January and May of 2015, Beaver took advances fromhis firm's general account in the amount of $150,000, in some cases paying for credit card charges forthe business and personal expenses.

Hunkatold the hearing that Beaver had clients who, in some cases, had deposited a retainerwith the firm expecting work to be done.

Instead, that money is alleged to have been taken out of trust and put into general accounting essentially getting used before any work was performed.

Hunka said the law society is seeking to have Beaver disbarred.

'It's a tragic story'

At the height of its success, Beaver, Leebody and Associatesemployedas many as five lawyers and six front office staff.

But after aself-reported shortfallin his firm's trust account, the law societyappointed a custodian over Beaver's property and law business.

Beaver's lawyer Simon Renouf told the hearing committee that his client has already made "serious admissions" regarding his misconduct.

"He has accepted responsibility for a great deal of the damage that was done and the accounting rules that were breached," said Renouf.

"It's a tragic story. He was a brilliant student and lawyer," addedRenouf. "A gold student at the U of A in 1993, he acted as a brilliant lawyer, and taught for many years at the U of A law school."

He went on to describe how Beaver experienced a"substantial change" between 2014 and 2015.

"In 2014, Beaver's mother passed away. He was drinking very heavily during that period, " said Renouf.

He was also going through a "significant break-up" with his common-law wife and, as a result, his legal work deteriorated significantly, Renouf added.

"Things came to a head. They came to a crisis," he said.

"We know we will be seeing sanctions at some point. These are matters that willrequire serious sanctions from the Law Society."

A total of 18 witnesses are expected to testify.

A full week has been set aside for the disciplinary hearing, including additional days in January, if needed.