Nova Scotia

N.S. law firm says it has to shut down after lawyer misappropriated money

Jason Boudrot was removed from his Port Hawkesbury firm — then known as Boudrot Rodgers — and suspended from practising law in Nova Scotia in October after he disclosed misappropriating funds from trust accounts.

Firm's new managing partner says he discovered $1.5 million in debt after Jason Boudrot's departure

Rodgers Law Group distributed layoff notices Friday to its 15 staff. (CBC)

The former law firm of a Nova Scotia lawyer who allegedly admitted to misappropriating clients' money has been forced to shut down over debt.

Jason Boudrot left his Port Hawkesbury firm — then known as Boudrot Rodgers — and was suspended from practising law in Nova Scotia in October after the firm said he disclosed misappropriating funds from trust accounts.

The day before, Boudrot abruptly quit his post as president of the Nova Scotia Liberal Party.

His law colleague, Adam Rodgers, took over as managing partner of the firm, which was renamed Rodgers Law Group.

$1.5M in debt

But Rodgers told CBC News on Friday he discovered the firm's debts as a result of Boudrot's actions were much larger than he thought: more than $1.5 million.

It was "too much for the firm to sustain," he said.

Rodgers Law Group has handed layoff notices to its 15 staff. The firm's seven lawyers are still licensed to practise.

"I don't know what that's going to be for everybody at this point ... they're all great lawyers and they'll certainly land on their feet," he said.

Creditor trying to recover cash

The Nova Scotia Barristers' Society will appoint a custodian Monday to oversee the firm as it winds down.

Rodgers was reluctant to discuss specifics of the firm's financial crisis, but he said the main creditor is taking action to try to recover its money. He said he expects the creditor to come after both him and Boudrot.

Rodgers said he will continue to practise law in the Port Hawkesbury area.

Clients of Rodgers Law Group can choose whether to stay with the lawyers who have been representing them up to this point, he added.

About the Author

Blair Rhodes

Reporter

Blair Rhodes has been a journalist for more than 35 years, the last 27 with CBC. His primary focus is on stories of crime and public safety. He can be reached at blair.rhodes@cbc.ca