NASSAU, BAHAMAS — The Court of Appeal has dismissed an appeal by senior attorney Craig F. Butler, upholding a decision by the Disciplinary Tribunal of the Bahamas Bar Council to have him disbarred over the admitted misappropriation of $862,287.43 in client funds.
In a judgment delivered on May 26, 2026, the Court ruled that the sanction of disbarment imposed by the Tribunal was neither “disproportionate nor wrong in principle,” despite Butler’s arguments that mitigating factors, including health challenges and efforts toward restitution, warranted a lesser penalty.
The case arose from a complaint brought by AML Foods Limited through the Bahamas Bar Council. According to the judgment, Butler admitted to professional misconduct relating to the misappropriation of $862,287.43, funds entrusted to him while acting on behalf of AML Foods in connection with the purchase of property and associated expenses.
The Court noted that AML Foods had obtained a judgment against Butler for the recovery of the funds, but “to date, the Complainant has not recovered any part of this debt.”
At disciplinary proceedings, Butler acknowledged his professional misconduct and sought only to challenge the sanction imposed. The Disciplinary Tribunal subsequently determined that he should be struck from the Roll.
The Court of Appeal upheld that decision, finding the Tribunal had properly considered the seriousness of the misconduct, the importance of safeguarding client funds, the need for deterrence and the impact on the complainant.
“The misappropriation of client funds constitutes one of the most serious forms of professional misconduct, as it strikes at the heart of the trust reposed in an Attorney,” the judgment stated.
The Court identified four material factors supporting the Tribunal’s decision: the serious breach of trust involving client funds, the obligations of a senior attorney to protect those funds, the need to deter similar misconduct and the adverse effect on the complainant.
The judgment emphasized that client monies are “sacrosanct” and “are certainly not to be used for the Attorney’s purposes no matter the ‘dire needs’ or circumstances in which the attorney may find himself.”
Butler argued that disbarment was disproportionate because there had been no specific finding of dishonesty. The Court rejected that position, citing previous decisions establishing that disbarment is not reserved only for cases involving dishonesty.
The Court further dismissed arguments concerning mitigating factors, including Butler’s health and alleged efforts toward repayment, noting that more than eight years after the misappropriation, none of the funds had been recovered by AML Foods.
Judges also rejected Butler’s attempts to introduce fresh evidence, constitutional arguments and claims of procedural unfairness.
In dismissing the appeal, the Court ordered that Craig F. Butler “now stands struck off the Roll as Counsel and Attorney” and must pay the costs of the appeal to the Respondent, with costs to be taxed if no agreement is reached.
