Previous Hearings
Committee: Discipline
Decision Date: 20 Jun 2016
Summary:
On June 20, 2016, the Discipline Committee of the College of Physicians and Surgeons of Ontario found that Dr. Mirza Rajabali Virani committed an act of professional misconduct in that he engaged in an act or omission relevant to the practice of medicine that, having regard to all of the circumstances, would reasonably be regarded by members as disgraceful, dishonourable or unprofessional.
Dr. Mirza Rajabali Virani, a family physician who obtained his medical degree in Iran, had a company called MRV International with an account at the Royal Bank of Canada.
In 2006, Mr. Arshad Latif, a purported businessman from Pakistan, proposed an investment opportunity to Dr. Virani. Within a week or two of investing $25,000.00, Dr. Virani lost all the money he had invested with Mr. Latif.
PATIENT A
Patient A, who is originally from Iran, was Dr. Virani’s patient between about 1989 and 2011. One of the reasons he chose Dr. Virani as his physician was because Dr. Virani speaks Farsi. Patient A has referred relatives as well as other members of the Iranian-Canadian community as patients to Dr. Virani’s practice over the years.
Patient A considered Dr. Virani to be successful, trustworthy, and wealthy, as well as a respected member of the community.
Patient A had told Dr. Virani during medical appointments that he had a successful business and a line of credit and was building a new home for his family. Dr. Virani suggested they become business partners and made requests for money. Patient A’s lawyer advised that Patient A should obtain collateral; however
Patient A trusted Dr. Virani and did not obtain collateral or enter into written agreements with Dr. Virani regarding the loans he made to him.
In August 2006, Dr. Virani telephoned Patient A while he was abroad and told him that he needed $60,000.00 right away.
Patient A told his wife to obtain a bank draft payable to Dr. Virani out of Patient A's line of credit, which she delivered to Dr. Virani on August 30, 2006.
Dr. Virani introduced Patient A to Mr. Latif in September 2006. Dr. Virani did not inform Patient A that he had lost $25,000.00 in an earlier deal with Mr. Latif.
Mr. Latif told Patient A that if he were to invest $448,000.00, he would make a $33,000.00 profit in one month. A few weeks later, Mr. Latif proposed another business investment to Dr. Virani to try and recoup the losses from the previous failed investment.
Although uninterested in the investment, Patient A agreed to loan $448,000.00 to Dr. Virani. Dr. Virani was aware that the money was borrowed from Patient A's line of credit. Dr. Virani agreed to pay the interest on the line of credit. Ultimately, Dr. Virani paid only four interest installments on the line of credit, totaling $15,134.82.
On October 16, 2006, Patient A went to the Royal Bank of Canada with Dr. Virani and Mr. Latif and provided a $448,000.00 draft to MRV International. Next, Dr. Virani wrote a $448,000.00 cheque to Mr. Latif’s company from the MRV account.
RBC informed Dr. Virani that it would not deal with the Pakistani bank because RBC viewed it as a dubious transaction. Dr. Virani did not pass this information along to Patient A. Months elapsed, and Dr. Virani provided various reasons for not repaying Patient A’s loan.
In February 2007, Dr. Virani promised to pay back the original $60,000.00 plus the subsequent $448,000.00 if Patient A loaned him a further $53,410.00. Dr. Virani told Patient A that he needed this new loan to have a shipment of plastic goods released, which he claimed was worth $629,000.00. Patient A loaned him another $53,410.00 on February 16, 2007.
On the same date, Dr. Virani provided Patient A with cheques in the amounts of $448,000.00, $33,000.00 and $53,410.00. Patient A, when attempting to cash the cheques, was told by the bank that Dr. Virani had put stop payments on the cheques on the same day they were written.
On April 15, 2007, Dr. Virani provided a cheque in the amount of $53,410.00 that Patient A was able to cash.
Patient A contemplated legal action against Dr. Virani but did not pursue an action on the belief that he would not get any money back.
Patient A and his family continued to see Dr. Virani as their physician in the hope that Dr. Virani would eventually pay the money back.
Dr. Virani repaid Patient A $128,544.82 prior to the bankruptcy proposal, including the freight charge reimbursement of $53,410.00, interest payments of $15,134.82, and reimbursement of the $60,000 loaned in August 2006.
PATIENT B
Dr. Virani also borrowed funds from another patient, Patient B, in relation to Mr. Latif's investment proposals. He also introduced the second patient to Mr. Latif. Dr. Virani did not inform the second patient about the initial failed investment with Mr. Latif in which Dr. Virani lost $25,000.00.
Patient B, who is also originally from Iran, was Dr. Virani’s patient between about 1990 and 2007. Patient B trusted Dr. Virani and eventually several members of Patient B’s family became Dr. Virani’s patients as well.
Patient B and Patient A did not know one another and also did not know that Dr. Virani had another patient lending him funds.
Dr. Virani became aware of Patient B’s business affairs and financial success over the years. Patient B felt comfortable with Dr. Virani, sharing details of his business as well as the fact that he had a substantial line of credit available for his business.
In September 2006, Dr. Virani introduced Mr. Latif to Patient B. Dr. Virani told Patient B about an investment opportunity that he wanted to discuss with Patient B. Patient B told Dr. Virani that he was not interested in the investment, and indicated that, due to the nature of his business, he did not trust anybody.
Dr. Virani asked Patient B if he trusted him. Patient B replied that he trusted Dr. Virani "one hundred percent." He agreed to lend money to Dr. Virani and to use his line of credit to do so. Dr. Virani offered to pay interest on the loan. Patient B refused, as his religious beliefs do not permit interest payments.
Patient B loaned Dr. Virani $150,000.00 from his line of credit, which Dr. Virani immediately wired to Mr. Latif's company, Pakistan Trading Co. Dr. Virani agreed to repay the loan within one month.
On November 10, 2006, Dr. Virani again approached Patient B and asked for another $51,000.00. Patient B agreed, obtaining the money from his line of credit. At Patient B's request, Dr. Virani wrote out a promissory note on his prescription pad for the total loan of $201,000.00, undertaking in that note to return the amount unconditionally within three months, which would have been February 10,2007.
In February 2007, Patient B attempted to collect the money owing. Dr. Virani told Patient B he was not able to repay the loan. Dr. Virani told Patient B that he needed more money to pay taxes and duties on a shipment of goods, without which he would be unable to repay any part of the loan already made. However, if Patient B were to give Dr. Virani some more money, Dr. Virani would be able to repay everything immediately.
On the basis of Dr. Virani's representations, Patient B loaned him another $34,633.00 on February 9, 2007. On the same date, at Patient B's request, Dr. Virani wrote three undated cheques, representing the total amount of all three loans, namely; $235,633.00.
Dr. Virani told Patient B that he would be able to pay him within a few days and would tell Patient B what dates to put on the cheques. Dr. Virani never provided this information to Patient B and did not repay the loans.
Patient B subsequently took legal action against Dr. Virani and obtained judgment in the amount of $235,633.00 from the Superior Court of Justice. Patient B has never collected on that judgment.
BANKRUPTCY
On June 30, 2011, Dr. Virani made a bankruptcy proposal. Both Patient A and Patient B are listed as unsecured creditors.
By the time the proposal expires, Patient A, who is listed as a creditor in the amount of $448,000.00, will have received total payments of approximately $42,000.00. Patient B, who is listed as a creditor in the amount of $289,096.00, will have received total payments of approximately $27,000.00.
PENALTY
On September 21, 2016, the Discipline Committee ordered and directed that:
- The Registrar suspend Dr. Virani’s certificate of registration for an eight (8) month period effective immediately;
- The Registrar impose the following term, condition and limitation on Dr. Virani’s certificate of registration, to be removed once the College receives proof of completion of the course:
a. Dr. Virani shall successfully complete the next available course in Ethics that is approved by the College, at his own expense.
- Dr. Virani shall appear before the Committee to be reprimanded within three (3) months of the date this Order becomes final;
- Dr. Virani to pay costs to the College for a one-day hearing in the amount of $5,000.00 within 30 days of the date of this Order.
APPEAL
On September 27, 2016, Dr. Virani appealed the September 21, 2016 decision of the Discipline Committee to the Divisional Court of the Superior Court of Justice.
On July 27, 2017, the Divisional Court dismissed the appeal. Therefore, the decision of the Discipline Committee remains in effect.
Decision: Download Full Decision (PDF)
Appeal: Appeal Dismissed
Appeal Decision Date: 2017-07-27
Hearing Date(s): June 20-21, 2016
Committee: Discipline
Decision Date: 03 Sep 1987
Summary:
In September 1987, Dr. Virani pleaded guilty to a charge of professional misconduct, as defined in s. 27(21) of Ontario Regulation 448/80, as amended, in that he failed to maintain the standard of practice of the profession. The Discipline Committee accepted this plea and found Dr. Virani guilty of professional misconduct. Consequently, the Committee ordered that Dr. Virani be reprimanded, with the fact of the reprimand to be recorded on the Register. The Committee further ruled that a restriction be placed on Dr. Virani's licence such that he be prohibited from practicing anaesthesia until and unless he satisfied the Registrar that he had updated his expertise in that specialty.
Appeal: No Appeal
Hearing Date(s): 03 Sep 1987