Complaints, Lawyer Discipline and Public Hearings

Summary of Admission of Misconduct and Undertaking


Konrad Malik

Vancouver, BC

Called to the bar: October 22, 2008

Ceased membership: January 1, 2020

Admission and undertaking accepted: March 30, 2020

AGREED FACTS

Konrad Malik practised primarily in securities and corporate law on behalf of junior issuers. A personal acquaintance reached out to him to request his legal services on behalf of a corporation, particularly to draft a Form 8A to be filed with securities regulators in the United States. By engagement letter, the corporation retained Malik to act as its counsel. The letter was signed by Malik and was counter-signed by two of its directors.

Malik did not speak or meet with the directors despite them being the listed directors and officers of the corporation. He did not confirm with the directors that they wanted him to prepare documents on behalf of the corporation.

The outstanding shares of the corporation were later sold. Malik’ s acquaintance located the buyer and organized the sale. Malik received instructions regarding the change of control and management of the corporation from his acquaintance and a purported consultant of the corporation and an individual he was advised would be taking over control of the corporation. Malikdid not communicate with the directors of the corporation regarding the change of control and management. Years later, the BC Securities Commission issued findings that an individual   hadengaged in conduct contrary to the public interest by deceiving securities regulators and the public about the true ownership and control of the company .

ADMISSION AND UNDERTAKING

Malik admitted that he failed to make reasonable inquires or exercise due diligence regarding the legitimacy of the business, affairs or transactions he was engaged to complete. Specifically, he did not make reasonable inquiries to obtain information about the company’ s purported directors and officers or their purported consultants. While the engagement letter to retain him was counter-signed by two individuals listed as directors, he did not contact them, meet with them or speak to them directly. He did not confirm the instructions he had received from others with the directors when he prepared and filed documents to change control of the company away from them and to effect the sale and transfer of 100 per cent of their shares.

The Law Society accepted Malik’ s admission of professional misconduct. In making its decision, the Discipline Committee considered the Respondent’ s residence overseas, that he has not been an active Law Society member for seven years, his willingness to make admissions and his absence of a disciplinary record.

Malik agreed to undertake for a period of nine months commencing March 31, 2020:

  • not to engage in the practice of law in British Columbia with or without the expectation of a fee, gain or reward, whether directly or indirectly;
  • not to apply for re-instatement to the Law Society of British Columbia;
  • not to apply for membership in any other law society (or like governing body regulating the practice of law) without first advising in writing the Law Society of British Columbia; and
  • not to permit his name to appear on the letterhead of, or work in any capacity whatsoever, for any lawyer or law firm in British Columbia, without obtaining the prior written consent of the Discipline Committee of the Law Society..

Should Malik wish to apply for reinstatement to the Law Society when his undertaking expires on January 1, 2021, he will have to satisfy the Law Society’ s Credentials Committee that he is of sufficiently good character and repute to practise law in BC.

Rule 4-29 Admission of Conduct and Undertaking to Discipline Committee