Nicholas Cartel and Singa Bui were sentenced on Oct. 25 for contempt of court after months of not complying with court orders to hand over documents and attend court sessions.
The two have been accused of taking more than $6.5 million from real estate clients that was embezzled from the trust account of their law firm Cartel & Bui LLP. Twenty-five clients filed lawsuits against the pair.
“Mr. Cartel and Ms. Bui have not shown remorse for their conduct,” Justice William Chalmers wrote in his decision, which The Epoch Times has viewed. “The defendants continue to ignore court orders and make misrepresentations to the court.”
Chalmers said he didn’t think a fine was appropriate in the case, as it would only add to the amount of debt the couple was in and likely wouldn’t be paid.
“I am satisfied that a fine that would not be paid by the defendants does not serve the objectives of sentencing.”
However, he did say the two were not required to serve the sentence at the same time.
“I recognize that Mr. Cartel and Ms. Bui have four small children. To have both parents in custody at the same time may impose an unnecessary hardship on the children. I order that Mr. Cartel will begin serving his sentence immediately. Ms. Bui will begin serving her sentence on November 26, 2024,” Chalmers wrote.
A court session has been scheduled for Nov. 18 to determine if Bui could serve her sentence in a psychiatric centre, as there have been claims she is undergoing mental health therapy.
Chalmers said he has tried to get the couple to comply and submit documents and passports as the court deals with lawsuits from the homebuyers.
A court order issued in May required the couple to surrender their passports, which both have done.
Chalmers noted that Bui had been travelling overseas at the times when the money is alleged to have gone missing. Her passport notes that she went to Switzerland and Italy in October 2023, Iceland in November 2023, and Portugal in September 2024.
“The passport stamps for Milan and Zurich in October 2023 are concerning,” Chalmers wrote in his decision. “Ms. Bui’s passport provides that she traveled to Milan and Zurich in the month when the majority of the frauds took place.”
He also noted that Bui has not told the court why she was travelling in October 2023, or where the misappropriated funds have gone.
“The passport also shows that she traveled to Portugal after I had issued a warrant for her arrest. She was apparently able to travel to Portugal but unable to attend the case conferences or to comply with the court orders,” Chalmers said, referring to a warrant for Bui to attend a case conference on Oct. 25, 2024.
Chalmers said the money was given to Bui who “acted for the vendor or purchaser.”
“Funds were paid in her trust account, but the funds were not used for their intended purpose. Instead, the funds were paid out of the account. Presumably, this was done by Ms. Bui and/or Mr. Cartel. The defendants have not advised the court where the funds were disbursed,” he wrote.
Most of the real estate closings involving the frauds took place between Sept. 27 and Oct. 30, 2023, the court document said.
Bui and Cartel were found in contempt of court in August, and given two months to follow court direction, but Chalmers said the couple continued to be in contempt.
“There was a period of two months from the date of the finding of contempt to the penalty phase to provide Mr. Cartel and Ms. Bui with a further opportunity to purge their contempt before the penalty phase.”
Chalmers said it had been made clear to the couple that they were to give the court documents defending their case by Sept. 20. Cartel sent 395 pages to Trung Nguyen, the lawyer for the plaintiffs, on Oct. 25.
“I am of the view that this approach by Mr. Cartel is further evidence of his contemptuous behaviour. Instead of complying with orders of the court with respect to the timing and delivery of materials, he has chosen to play by his own rules and to produce the material whenever he wants,” Chalmers wrote. “This is the way Mr. Cartel has generally conducted himself in this litigation and it is not acceptable to the court.”
The justice also said the couple has not disclosed to the court how they are paying for their day-to-day living expenses. It was something he said suggests they have undisclosed assets.
“Ms. Bui travelled to Milan and Zurich in October 2023. She returned to Europe in September-October 2024. There is a real risk that she has the ability to put assets beyond the reach of the plaintiffs,” he wrote.
