Craig Kiyokata Iwata

Findings — machine-extracted (anthropic-batch:claude-opus-4-8); verify against the decision

John Taylor Martin and Craig Kiyokata Iwata, partners at Martin & Associates in Vancouver, engaged in a scheme between September 2001 and May 2003 of withdrawing client trust funds (on 47 occasions across two banks) to prop up the firm's general account/line of credit and induce the bank not to call the facility, repaying the funds the same or following day. Iwata admitted this constituted misappropriation and professional misconduct contrary to Rule 3-56, and also admitted failing to immediately eliminate trust shortages (26 occasions, Rule 3-66(1)) and failing to immediately report shortages over $2,500 (17 occasions, Rule 3-66(2)). Numerous reports to the Law Society falsely/erroneously stated 'the bank was not overdrawn, only the client's position.' No client lost money. Martin resigned; Iwata undertook to cease practice pending disposition. The excerpt is the Agreed Statement of Facts and contains no express finding of dishonesty and no stated penalty.

Duties found breached:

• Uphold public trust in the profession
• No improper use of client money
• Self-report to the regulator
• No baseless or threatened misconduct report

Aggravating factors:

• Numerous occasions over an extended period (September 2001 to May 2003)
• Escalating amounts, growing from $1,000 to over $100,000 per occurrence
• Client funds at all times at risk while in the firm's general account
• Repeated false/erroneous statements to the Law Society despite reminders of reporting obligations
• Continued transfers even after the bank asked the practice to cease

Mitigating factors:

• No client lost any money
• Funds were repaid (replenished) the same day or following day
• Disclosure to the Law Society through counsel and cooperation (undertaking, consent to custodian)