Veteran New Westminster-based criminal defence lawyer Robert L. Dick has agreed to a two-month suspension for assisting a client involved in the illicit cannabis industry obtain a retail licence via a nominee applicant.
According to a Law Society of BC consent agreement posted July 2, Dick agreed he committed professional misconduct, including failing to “be on guard against becoming the tool or dupe of an unscrupulous client or other persons.”
In relation to dealing with this client, Dick failed to make reasonable inquiries about his client’s business venture, including the source of funds.
Dick ultimately continued to act on his client’s behalf despite having no reasonable grounds to believe the venture was legitimate.
Lawyer helped client use nominee as advised by a consultant for the provincial government: society
In 2018, Dick was approached by his client, referred to as “DC,” concerning a proposed application for a retail cannabis licence.
Dick had met DC about 20 years earlier through his criminal practice, when DC and his associate, referred to as “GS,” were both understood by Dick to be involved in the illicit cannabis industry, the agreement states.
Alongside DC and GS, Dick attended a provincial government licensing application consultation meeting in early summer 2018 wherein the consultant from Rising Tide Consultants “expressed concern with respect to both DC and GS as applicants for the licensing process, due to their apparent former involvement in the illicit cannabis industry and issues with their taxes reportedly not being up to date.”
However, at the meeting — as described by the agreement — the consultant advised that this situation was "commonly dealt with" by what he referred to as a “white knight” applicant.
Dick, the agreement stated, “understood that the ‘white knight’ applicant process involved using a purported applicant to cloak the identity of the true applicant.”
As a result, DC involved an acquaintance of his, referred to as “SB” in the agreement, with the proposed licence application. As such, SB's company NRC Ltd. would become the applicant but with DC as the so-called "silent partner” and chief financier.
Dick knew this would conceal DC’s apparent taxation issues and involvement in the illicit cannabis industry, which was ongoing, per Dick’s understanding.
Dick “was aware that there would have to be dishonesty involved in preparing and submitting the licensing application to the province, in order for the ‘white knight’ application to succeed," the agreement states.
BIV has reached out to Rising Tide to understand if using nominees to shield the identity of an applicant is common practice and legal. Should it respond, the response will be included in this article.
Furthermore, Dick “made no inquiries to determine whether the true sources of funding for the business were being disclosed to the province in the licensing application.”
Dick also didn’t inquire about details of the arrangements between DC and SB, despite understanding that DC was providing funding to NRC Ltd. for the business venture.
DC did, however, tell Dick the money sent to NRC was cash.
“At the material times, [Dick] was not aware of any legitimate sources of income for DC,” the agreement noted.
Nevertheless, Dick then assisted NRC Ltd. applying for a business licence with the City of New Westminster.
The business plan submitted to city hall concealed DC as the main actor and thus “presented a misleading picture of the business and its sources of funding, including what NRC Ltd. was and who was behind it,” the agreement states.
Dick also made oral submissions at the city’s public hearing on April 19, 2021, introducing himself as counsel for NRC Ltd. while not mentioning his client, DC.
Through his efforts, NRC Ltd. got the city business permit and provincial licence for one year.
Then, Dick issued DC a $3,990 loan for a lease on a property and was repaid in cash.
But when the landlord walked back on the lease following an apparent dispute, the landlord asked Dick if he knew anyone else who may be interested in renting the property.
That’s when Dick suggested that he speak to GS, who had become an owner and director of MC Ltd., which operated a retail cannabis store in Vancouver.
Dick was also penalized by the society for entering into a conflict of interest with NRC Ltd.
Dick stated to the society he was remorseful.
“In particular, [Dick] now understands and acknowledges that he proceeded to act in this matter in the face of numerous red flags, and failed to make reasonable inquiries or to decline to act or continue to act in the circumstances,” the agreement, posted online, concluded.
