Arash Missaghi ‘never should have been in a position to exploit the civil justice system in the first place, because he should have been in prison’ says lawyer Peter Smiley
Arash Missaghi, who was shot dead last week by a man accusing him of defrauding his family of their home and savings, was not just a prolific fraudster, he was also an expert in abusing the legal system to get away with it, a lawyer said Tuesday.
“The primary problem with Mr. Missaghi is that he never should have been in a position to exploit the civil justice system in the first place, because he should have been in prison,” said Peter Smiley, a lawyer for clients who, like the gunman, sued Missaghi for fraud.
Smiley was appearing at another court hearing in a sprawling tangle of hearings by people chasing Missaghi and his associates, alleging fraud. Tuesday’s hearing was set to be routine procedural discussions but took unexpected urgency after Missaghi, 54, of Toronto, was shot dead, alongside a business partner, Samira Yousefi, 44, of Concord.
The gunman, Alan Kats, 46, then killed himself.
This was the first known court hearing involving Missaghi since the shootings, and it turned feisty.
Outside court, Smiley said the shooting should be a wake-up call for the justice system.
“These events have caused many of us in the legal profession to reflect on this tragedy and on what could have been done to avert it.
“Many people have asked how it was that Missaghi was able to avoid a civil finding of fraud for so long,” Smiley said.
“Part of the reason was that he knew how to create procedural delays and avoid trials where evidence can be called before a judge who can make findings of fact.
“Another way that Mr. Missaghi abused the civil justice system was by consistently failing to obey court orders.
“A third thing that has frustrated the resolution of these claims is the involvement of lawyers and the assertion of lawyer-client privilege over key documents.”
Canada’s court system wasn’t capable of corralling Missaghi who, over decades was accused of frauds, other crimes, and faced lawsuits and complaints but seemed unstoppable, seemingly incorrigible and unrepentant. While a judge hearing the gunman’s lawsuit called Missaghi a “predatory fraudster,” the case still hadn’t reached its end.
Smiley said the system should be doing more to protect people from Missaghi.
“We are incredibly fortunate to have the civil justice system that we do. Our court system and our judges are unfailingly careful. They are precise. They are ethical and they are fair. They just want to do justice. Unfortunately, they are working within a system which is severely underfunded, suffering from a massive shortage of judges. And experiencing considerable procedural delays.
“Mr. Missaghi knew all that and he knew how to exploit it.”
As people gathered for the hearing, they could be heard somberly asking in jest if they needed to check for guns at the door.
In court Smiley read a text message sent by Missaghi to a lawyer that is in the court record, threatening to sue any who cross him, saying: “Stealing from a person like me is like stealing from Al Capone. I don’t allow it to happen … I will have no mercy after Tuesday. You guys will not rebound from this.”
And he read out an email from Missaghi: “This is what I do … I shake the system and change it and evolve people so everyone and every lawyer across the nation follows the new pattern.”
After a pause and sigh, Smiley looked up at Associate Judge Jay Josefo of Ontario Superior Court civil division and said: “Your Honour, we cannot permit those words to serve as Mr. Missaghi’s epitaph.
“Mr. Missaghi serially abused the processes of this honourable court for over 20 years in order to evade the consequences of his many frauds and he cannot be permitted to continue to do so from beyond the grave.”
Later, Josefo said that Smiley’s proposals to forge ahead with various motions and actions couldn’t ignore court procedure.
“I understand your frustration,” he said, “but you have to go through the steps.”
He also noted that the lawyer of record for Missaghi, Shahryar Mazaheri, hadn’t even attended the hearing.
In the end, Smiley and Peter Zibarras, a lawyer for another defendant in the lawsuits, agreed on some procedural matters to speed up the case, with both lawyers requesting their matters be heard in court at the earliest possible opportunity.
That still might take a long time.
Josefo acknowledged the daunting task of sorting out the legal web: “I’m 62 and I’m hoping to retire by 67,” he said.
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