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

The former law firm of a Nova Scotialawyer who allegedly admitted tomisappropriating clients' money has been forced to shut down overdebt.

JasonBoudrotlefthis Port Hawkesbury firmthen known asBoudrotRodgersand was suspended from practising law in Nova Scotia in October afterthe firm saidhe disclosed misappropriating funds from trust accounts.

The day before,Boudrotabruptly 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 toldCBCNews on Friday he discovered the firm'sdebts as a result ofBoudrot'sactions 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 topractise.

"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 wasreluctant 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 Groupcanchoose whether to stay with the lawyers who have been representing them up to this point, he added.